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With significant supply chain and parts based in Mexico, both GM and Toyota, among others, were vocal about top-line revenue decreasing and the cost of goods increasing. Both companies had internal memos warning their employees and dealerships of the huge impact the tariffs would cause.|
You even had Chipotle step forward and outline the disruption to its business and its potential to increase the cost per food item, should these tariffs become permanent. It should be acknowledged that executives from these multi-national corporations do not make these statements lightly and will only lay them out to the public when it is necessary.
Therefore, the full tariffs would have not only had an effect on companies, but on entire industries.
Last but not least, it is worth considering whether the tariffs are a tool or weapon. With the use of tariffs in this situation, some new precedence might be starting to be laid out.
President Trump, who has called himself Mr. Tariff Man, has fit the bill as the aggressor in using the tariff power to his advantage. In this case, his intention was geared as a weapon to engage a change on border security and immigration policy between the U.S. and Mexico.
At this point, it is undeniable that Trump's tariff trick on Mexico has, to some extent, worked; but, down the road, the possibility of repercussions from these tactics may not be forgotten.