President Trump threatened to shut the U.S. - Mexico border again, and it could have serious economic consequences.
President Donald Trump has threatened to close the border between the United States and Mexico more than a few times. The most recent came over the weekend, and the threat was subsequently backed by White House officials so this one carries a bit more weight. The president has repeatedly cited illegal immigration as a major threat to the U.S., but several reports suggest closing the Mexico - U.S. border would have a significant and near-instantaneous effect on the U.S. economy – including the auto industry.
A CNN report says the U.S. auto industry would last a week before shutting down if the southern border was closed. The news outlet cites Kristen Dziczek, vice president of industry, labor, and economics from the Center for Automotive Research, who explained that just about every vehicle in America has parts sourced from Mexico. The report goes on to say approximately 16 percent of all auto parts in the U.S. – used both at manufacturing plants and auto parts stores – are imported from Mexico.
Additionally, the report cites a statement from Matt Blunt, president of the American Automotive Policy Council (AAPC), who reportedly said that “any action that stops commerce at the border would be harmful to the U.S. economy, and in particular, the auto industry. Access to Mexico's marketplace and North American integration are critical to operations in the U.S." Motor1.com has reached out to the AAPC for confirmation on that statement.
Trump is often critical of the news coverage from CNN, but other outlets report the same dire consequences a southern border shutdown could have on the U.S. auto industry. NPR also turned to Dziczek for information, who further explained that Mexico accounts for 37 percent of all imported parts in the States and that a border closure could see some manufacturing plants go idle in just a few hours.
According to CNN, several Trump administration members told the news outlet that the president has been warned about the economic consequences of a border shutdown.