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Border Shutdown Would Severely Hamper Auto Industry

President Trump's threat to close the US-Mexico border would have severe consequences for the auto industry, which relies on Mexico and other countries for parts and production. A shutdown would cost auto manufacturers $5.6 billion per week.

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Border Shutdown Would Severely Hamper Auto Industry

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  1. April 4,2019 Border Shutdown Would Severely Hamper AutoIndustry BY POLITICO PRO DATAPOINT STAFF President Donald Trump’s threat to close the U.S.-Mexico border would have particularly severe consequences for the auto industry, which relies on Mexico and some Central and South American countries for parts and production. Auto production accounts for more than a quarter of the bilateral trade in goods between the U.S. and Mexico, and auto parts typically cross the border eight times during the assemblyprocess. Sources: U.S. Census Bureau, U.S. Department of Commerce, U.S. International Trade Commission, POLITICO Pro reports, Center for Automotive Research, Peterson Institute for InternationalEconomics, Detroit FreePress

  2. Border shutdown would cost auto manufacturers $5.6 billion perweek The Center for Automotive Research, an independent research institute, estimates that an auto company losesabout $1.3 million for every hour an assembly line is down. The Center estimates that a shutdown of all 54 major U.S. assembly lines would cost $5.6 billion perweek. U.S. automotivetrade ANNUAL EXPORTS, BILLIONS OFDOLLARS $200 TO REST OFWORLD $100 TO MEX. $0 2014 2015 2016 2017 2018 IMPORTS $300 FROMREST OFWORLD $200 $100 FROM MEXICO $0 2014 2015 2016 2017 2018 Note: The Office of Transportation and Machinery within the U.S. International Trade Administration provides automotive trade data as well as a list of auto parts and vehicles included in its data, based on goods classified at the 10-digit HTS code level. Annual and monthly trade data shown above is based on the eight-digit HTS code level. State-level data shown is available only at the six-digit level and includes the value of some products not on the ITC list.

  3. Timing of border closure could affect peak trademonth Data from 2014 to 2018 show that auto and parts trade with Mexico typically peaks in October, although monthly two-way trade stays relatively stable. Depending on if and when the president acts on his plans, the border could be closed during the busier fallmonth. Autos andparts MONTHLY AVERAGE, BILLIONS OFDOLLARS $10 Imports fromMexico $8 $6 OCTOBER PEAK $4 Exports toMexico $2 $0 J F M A M J J A S O N D

  4. Texas, Utah, Michigan Top List for Top Auto Trade withMexico Combined dollar value of imports andexports Total trade in automotives and parts with Mexico,2018 DEL. MICH. $23M $100M $1B $4B $10B $56B ME Less than$30M in totaltrade NH VT WA ID MT ND MN IL WI MI NY RI MA IA OR NV WY SD IN OH PA NJ CT MO CA UT CO NE KY WV VA MD DE AR AZ NM KS TN NC SC DC LA OK MS AL GA FL AK HI TX

  5. Texas, Utah, Michigan Top List for Top Auto Trade withMexico As a percentage of all suchtrade Total trade in automotives and parts with Mexico,2018 DEL. UTAH 2% 10% 30% 50% 63% ME Less than$30M in totaltrade NH VT WA ID MT ND MN IL WI MI NY RI MA IA OR NV WY SD IN OH PA NJ CT MO CA UT CO NE KY WV VA MD DE AR AZ NM KS TN NC SC DC LA OK MS AL GA FL AK HI TX

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