Final Thoughts

President Trump gave the Mexican government one year for them to stop the migration of immigrants, most from Central and South American countries, as well as illegal drug smuggling into the United States. The stick he is waving is not closing the border (which would decimate the U.S. economy), but instead threatening tariffs on automobiles from Mexico. A couple of thoughts on that one. First, I anticipate that the USMCA (NAFTA 2.0) trade agreement will be signed and in place one year from today. There must be language in the USMCA that would prevent one party from blocking automobiles or parts from crossing from Mexico into the United States or Canada. Second, the threat of using tariffs against Mexican auto production has got to be frightening to just about everyone in the supply chain, including the domestic steel mills.

We will have lots to discuss at our upcoming SMU Steel Summit Conference…