With President Donald Trump's proposed tariff's on Mexican goods set go into effect on February 1, rumors surfaced online about automotive manufacturing company General Motors potentially pulling out of Mexico due to the tariffs.
But Mexico's Secretary of Economy Marcelo Ebrard stated on Jan. 29 that "no one will leave Mexico," adding that GM, one of the world's largest motor-vehicle manufacturers, will instead "adjust" in case Trump's tariffs are introduced.
"They are going to adjust and they have already told us how they are going to do it," Ebrard said to reporters. "No one is leaving Mexico because their most productive factories are here. It would be too expensive," he added.
While speaking at the American Society of Mexico assembly, Ebrard confirmed that General Motors told Mexican officials of their intentions when the secretary visited the company's headquarters in Detroit, Michigan.
This comes after rumors spread online about GM potentially transferring part of its vehicle manufacturing to the U.S. in case Trump moved forward with his intended tariffs on Mexican goods.
The vehicle manufacturer has had a strong presence in Mexico since 1935. Currently, General Motors employs more than 25,000 people across its four assembly plants in the states of Mexico, Sinaloa, San Luis Potosí and Coahuila.
Mary Barra, chair and chief executive officer of General Motors since 2014, said during a teleconference that she hopes tariffs can be avoided, as Mexican President Claudia Sheinbaum has signaled that authorities are "working and holding conversations to take the necessary measures" to avoid paying the tariffs.
But in case the Trump administration moves forward with its plan, Ebrard says Mexican officials have been —for months— working on a strategy to combat the threats.
"I can't reveal what we have predicted, but we have analyzed it a lot and prepared accordingly. We have to take it day by day, as nothing lasts forever," he said.
Ebrard added that the Sheinbaum administration will be "paying close attention" on February 1 in case the U.S. moves forward with the 25% tariffs on Mexican goods.
Originally published on Latin Times
