Trump's tariff threat in Mexico is "very dangerous for consumers"

The impact of the new tariffs on Mexican products would have serious consequences for the auto industry and consumers.

"The administration is clearly trying to exert pressure by applying these tariffs on cars," said Gregory Migliore, editor of Autoblog (owned by Verizon Media), at Yahoo Finance. "I think the impact would be very dangerous for consumers."

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"Almost [every automaker] to some extent, manufactures cars or has a supplier in Mexico, "said Migliore, adding that the consequences for consumers would be" almost immediate ".

Mexico must show "a sign of good faith"

Trump has been vocal on the imposition of tariffs on Mexico, citing the country's "passive cooperation" to facilitate illegal immigration across the southern border. In a press release, the White House cites "an unprecedented amount of crime" for Trump's hard line on trade with Mexico.

The president said Mexico should adopt stricter border regulations, adding that this would be "a sign of good faith."

A "very healthy time" for the automotive industry

Even with the threat of tariffs, Autoblog Migliore said it was a "historically formidable" moment to buy a vehicle.

"Car sales are still at a very healthy level, nearly 17 million expected for the rest of the year," he said. "Is it always a good time to buy a car in a very healthy market? Absolutely. Gasoline prices are still very low, 10 cents less than this time last June. Credit is readily available. It's still a very healthy period for the automotive sector. "

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