Vehicle Shipments: Mexico and Tariffs

vehicle shipments: Those tariffs would gradually rise to 25 percent by Oct. 1 if Mexico does not satisfy Trump's demands. ; Faced with this threat, major automakers are also planning to delay some vehicle shipments from Mexico, people briefed on the plans said Tuesday, according to The Japan Times. The shipment delays would affect vehicles with high inventory levels on U.S. dealer lots if the tariffs take effect. Trump has said he will apply tariffs of 5 percent on Mexican goods next Monday if Mexico does not halt the flow of illegal immigration, largely from Central America, across the U.S.-Mexican border. Automakers are trying to speed some critical parts shipments this week ahead of the Monday deadline. A prolonged period of tariffs on Mexican imports would likely push Mexico into recession and could also threaten a recession in the United States, LMC said. Consultancy LMC Automotive said Tuesday the industry could absorb a 5 percent tariff for a month, but that a sustained period at the 25 percent tariff level will have a potentially devastating impact on the auto industry and cut U.S. new vehicle sales by up to 1.5 million units annually. (news.financializer.com). As reported in the news.