China-to-Mexico factory shift thrown in disarray by Trump threat

© Karenr

As if the US hadn’t imposed enough tariffs, here comes another – but the threat of tariffs on Mexico has left US manufacturers reeling. Mattel, which has been consolidating more  manufacturing in Mexico, and lessening its presence in China, could lose between $5m and $15m in profits this year if tariffs are implemented on all Mexican goods. The US has said that tariffs will be between 5% and 25%, but mostly US companies have been left wrong-footed. One US company executive told Bloomberg: “It’s just crazy. It’s just out of the blue, especially when USMCA is in the middle of getting ratification.”