U.S. Auto Industry Will Practically Shut Down If Trump Closes US-Mexico Border

The entire U.S. auto industry could shut down if President Donald Trump pulls the trigger on his threat to close the US-Mexico border, CNN reports.

According to Kristin Dziczek, the vice president of industry, labor and economics at the Center for Automotive Research, approximately 16 per cent of all auto parts used in the United States originate in Mexico. This means that most vehicles produced in the United States use some Mexican parts and the industry could effectively shut down within a week if it doesn’t receive supplies.

The U.S. auto industry imports $59.4 billion worth of parts from Mexico while exporting $32.5 billion worth of parts to assembly plants in Mexico. A shutdown of the US-Mexico border could, therefore, also cripple their Mexican operations.

In a statement, the president of the American Automotive Policy Council, Matt Blunt, said that a border shutdown would hurt the U.S. economy.

“Any action that stops commerce at the border would be harmful to the US economy, and in particular, the auto industry. Access to Mexico’s marketplace and North American integration are critical to operations in the US,” he said.

Among the most important auto parts imported into the U.S. from Mexico are wiring harnesses. According to Dziczek, roughly 70 per cent of the wiring harnesses used in U.S.-built vehicles come from Mexico. Without a wiring harness, you simply can’t build a car.

President Trump is threatening to close down the border in a bid to stop illegal immigration. He recently admitted that doing so would hurt the economy, NPR reports.

“Sure, it’s going to have a negative impact on the economy. But security is what is most important to me. We’re going to have a strong border or we’re going to have a closed border,” Trump said.

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Opening image from Palácio do Planalto from Brasilia, Brasil/Wikimedia Commons

  • Matteo Tommasi

    Nothing new, he’s always been an idiot

    • ME

      Carscoops Comment Policy:

      Remember to a) Stay on topic, don’t spam b) Avoid name calling and personal attacks c) Keep it civilized Please read our Comment Policy before commenting.

    • Puddingpopper

      I’ll allow it

  • Craig

    I guess the time has come for DEMOCRATS to stop F ing around.

    • Mr. EP9

      I won’t hold my breath but who knows, maybe this time will be different.

    • Enter Ranting

      Why, the Democrats haven’t forced Mexico to pay for Drumpf’s big, beautiful wall yet? We only just took over control of the House. Why didn’t Republicans solve the illegal immigration problem when they had the House, Senate and White House?

      • illogicalPotato

        They’re not in the business of solving problems.

      • THE REPUBLICANS WERE TELLING DONNIE “NO” FOR TWO YEARS BUT HE JUST WOULDN’T LISTEN. SO NOW HE BLAMES THE DEMS.

  • Charles Chin

    Should do it bcoz – MAGA

  • Afi Keita James

    it is time, our border crisis as it’s highest yet, no more of this.

  • TB

    That idiot will do it too…even if the GOP is against it…then blame it on the dems. Typical.

    • Six_Tymes

      such a shame the “dems” are so out of touch with reality and fueled by hatred. they do nothing but fight, never work together to get anything done. so sad

      • illogicalPotato

        LOL Come on Six, get it together. Plenty of that on both sides of the aisle.

      • Dude

        Were you born in 2016 or did you just forget 2008-2016?

      • TB

        That’s hilarious! Considering the current clown in office thrives on hate…and the weak sheep of the GOP just allow it. That’s what is so sad.

        • Afi Keita James

          because both of these parties are stupid, look what your last clown nobama did, try to sellout OUR sovereignty with the trans pacific partnership.

          • TB

            If not Rep or Dems then who? We are left now more so than ever with “who are the lesser of two evils”. At least Obama was trying to do what he thought would be best for this country & our allies/neighbors. The problem with that was our allies/neighbors. That should not have been a consideration or really on the back burner for that plan. Regardless – Obama and his administration was not run/motivated by greed, hate and self advantage like this Orange Buffoon, who is currently ruining this country and trying to compromise our American values for his own gain.

      • Stigasawuswrecks

        Because republicans setting a record for voting no when obama was president was nothing.

        • Afi Keita James

          like I said again, both sides are pathetic and nobama was a sellout too like the rest.

          • Stigasawuswrecks

            When a person uses a term like nobama you know they aren’t smart enough to have a valid view on a matter.

          • AT LEAST THEY DIDN’T PULL OUT THE SNOWFLAKE CARD…YET.

          • Afi Keita James

            because that clown it deserved after it after what he and that witch killary did to Libya, scumbag.

          • Stigasawuswrecks

            You’re really not that bright and are easily tricked into believing anything aren’t you?

  • Sovereignty

    More mainstream media scaremongering. Mary Barra continues to appear to work for the Mexican people, rather than the Americans.

    • Afi Keita James

      she makes me sick, shame on her, she needs to resign, what happen to American cars period, instead she sold out American workers like the rest.

      • Bo Hanan

        I assume you feel the same for men executives who have done the same…..

  • Enter Ranting

    Terrible businessman doesn’t understand business, film at 11:00.

  • Six_Tymes

    so, another words, no one wants an even playing field.

    • illogicalPotato

      How did you come to that conclusion?

  • Thunderbolt

    70% of the wiring harnesses comes from Mexico.
    Ok, fine
    Ship them to Bermuda or Canada, then import them into the U.S.
    We’re still have good relationship and fair trading with the English & the Canadian.

  • Marc Gruben

    If our country has to take a hit now for years of kicking the can down the road by both political parties, so be it. This uncontrolled immigration has to stop. The Northern Triangle countries (Guatemala, Honduras, and El Salvador) have absolutely no reason to try and make their nations prosperous when they can simply export everyone to the US. It simply leaves more resources for those few who remain – the politicians, military leaders, and drug cartels. Their citizens would rather become dependents of the US rather than try to change their countries. Mexico unfortunately is the buffer so the pressure HAS to be put on the Mexican government to stop giving the migrants an unimpeded corridor. We can seize border lands through imminent domain and then heavily militarize a 2-3 mile wide stretch of land spanning the Mexican border. Do you want that? We can use the FULL weight of the US military to invade the Northern Triangle and try to enact regime change in all three countries. Would you prefer that? Or would you prefer to take a “Tough Love” approach toward Mexico?

    There are no other solutions that I see, unless you guys want to publish your addresses online with a Google Maps link to your house, and invite the illegals to live with you.

    As for the auto industry, and industry in general, they are full of sh*t. Nature (and business) abhors a vacuum. The automakers and suppliers will quickly find a way to create new supply lines within the US and/or Canada. GM can lease out the Lordstown and Janesville plants. I’m sure Ford and Chrysler have a few plants that are unused or under-utilized as well. Or they can have the parts and supplies shipped by air. I’m sure UPS, DHL, FedEx and other carriers would love to put a few more 747 Cargos into service. They just have to be willing to spend a few bucks to make it happen.

    • Afi Keita James

      thank you marc and we need to stop these terrible trade agreements period, because it makes the problems worse.

    • PUT MAR A LAGO’S ADDRESS SINCE DONNIE ASKS FOR WAVERS TO HIRE ILLEGALS.

  • Stigasawuswrecks

    And we wonder why this man bankrupted multiple businesses.

    • Cobrajet

      He didn’t do it by hiring only American workers.

  • KareKakk

    Yeah, things did really go so well with your previous geniuses of presidents.

  • Afi Keita James

    NAFTA was a disaster since it’s inception in the 1990’s and you don’t even know about it.
    thanks a lot bushs and Clintons, you really messed this country up.

    • Galaxium

      The liberalization of trade is important and should be something governments aim for. Companies have to utilize comparative advantage so they can produce final goods at a cheaper cost. It creates incredibly intricate and critical supply chains. For example, a NAFTA seatbelt crosses national borders three times: Mexico is best at producing nylon fibers, Canada is best at weaving the actual nylon fibers, etc. Trade liberalization allows us to have optimal allocation of goods.

      When NAFTA was signed in 1994, the US had created more than 2 million jobs per year between ’94 and ’00. Employment in the manufacturing industry only started to decline in ’01.

      Also, if you know econ, the current account is equal to the savings minus investments, but also equal to your sum of net exports and net abroad income. When there’s a trade deficit in the US, it means the US also invests more than it saves, since net income from abroad is almost 0. These deficits are related to capital inflows. It’s why in the last recession, our trade deficit fell greatly, but it also meant that domestic investment fell greatly as well.

  • I GUESS PUTTING PICTURES OF THIS SLOB ON A CAR BLOG GETS CLICKS. WE GOT ACCIDENT VIDEOS GALORE AND THIS CREEP. MAYBE A NAME CHANGE FOR THIS SITE IS IN ORDER. https://uploads.disquscdn.com/images/190a4cc38c056fb2f70728680297d4260eaa4e2ddc7b090398ae28826cbb73fb.jpg

  • Charles Taylor

    By what yardstick are you measuring success? You’ve seen his tax returns??!?

  • QUITE FRANKLY A CAR BLOG ISN’T THE PLACE FOR IT BUT IT GETS CLICKS.

  • THAT’S WHAT HE TELLS US THAT DOESN’T MAKE IT TRUE. HE TOLD THE WORLD AT THE REPUBLICAN DEBATES THAT HE WAS HUNG…DON’T KNOW WHY HE FELT THE NEED BUT STORMY SET THE RECORD STRAIGHT. HE HAS HIS OWN REALITY NOT BASED ON FACT. HE’S NOW SAYING HIS FATHER WAS BORN IN GERMANY.

  • TheHake

    So trying to keep out illegal aliens will also “shut down” legitimate imports???????
    If that is the case I see big problems for Britain after Brexit…

  • Stigasawuswrecks

    They licensed the use of their name out that many times, they didn’t have that many businesses. And if he was so great then why did every major US bank refuse to lend to him over his constant defaults?

  • ME

    You seem to be knocking everyone in your path. You’re the child.

    • Dude

      “knocking everyone in your path”. Um, what? Also how dare you call me a child. Flagrantly and flamboyantly breaking the posting laws. Such delinquency makes me sick.

      • ME

        Someone must be studying for their SATs. Like he’s going to make it into college. He’s using such big words. Mommy is going to be proud. And yes you are a CHILD.

        • Dude

          Calm down buddy. I’ve never seen someone so mad at the way I talk lol. I’ll try to dumb down my posts for you but honestly I’m not sure I can bring myself down to your level. Just sound out the words and I’m sure you’ll be able to understand them.

  • TB

    This world would be a much better place if that horrible event didn’t take place in 63. I hear what your saying. Anymore politics are low & dirty. I don’t agree with your assessment on Obama, although will agree he could have done some things better. How did you vote in 16 & what are you thinking for 2020?

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