Mexico is the largest “assembler” of cars outside of China. The Audi you drive is most likely assembled in Mexico, and this brand is a good example of the issues facing business. The Audi is designed in Germany and is a product of German engineering. The consumer buys the vehicle for this brand status.
During the week, I had a long conversation with Mexico’s ambassador, Cespedes, and his head of economic affairs, Rivera Becerra. The discussion had more relevance to our business concerns around China trade than I had expected.
The headlines suggest that China is trying to evade Trump’s tariffs by sneaking in cars via Mexico to the US In the usual style of US trade officials, this is very simplistic. The real situation is much more complex and it’s a web that has impacts on every business relationship that includes the US and China.
