Trump’s Mexico Tariff Threat Trips Up Manufacturers Shifting Out of China

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Trump’s Mexico Tariff Threat Trips Up Manufacturers Shifting Out of China
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Mexico was a winner in the U.S.’s trade fight with China. Now, with Trump wielding a tariff threat against the country, those benefits are at risk.

Companies moved operations to Mexico both to avoid Chinese tariffs and enjoy market access under the renegotiated Nafta; a trade fight over immigration would hit consumersTIJUANA, Mexico—The trade fight between the U.S. and China has pushed firms to shift manufacturing to Mexico to avoid tariffs and keep prices steady. Now the prospect of new U.S. tariffs over immigration threatens to disrupt that shift and drive up costs for American consumers.

Many products made in China, from cosmetics to digital cameras, have been slowly gravitating to Mexico following a series of tariffs imposed on Chinese exports. If the U.S. begins hitting Mexico with steep tariffs—as President Trump this week threatened...

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