– Bill Vlasic, “Profitable Pickups May Be in Cross Hairs of Trump Border Tax,” The Wall Street Journal online, Feb. 13, 2017
ECONOMY/IMPORT TAX/JOBS: “There are many reasons for the steady success of the three major American automakers in recent years, but none are bigger than the surging sales of full-size pickup trucks.
General Motors, Ford Motor and Fiat Chrysler dominate the segment in the United States market, and they rely on pickups for a sizable portion of their earnings in North America as a whole.
But President Trump’s proposed border tax on imported vehicles could throw a wrench in the profit machine, particularly for G.M. and Fiat Chrysler, which build a large percentage of their pickups in Mexico.
At the same time, Ford — which makes all of its pickups in American factories — would most likely benefit at the expense of its rivals.
The Trump administration has pledged to levy tariffs of up to 35 percent on vehicles imported from Mexico and possibly elsewhere, primarily to prod automakers to increase production and jobs in the United States.”