By on May 31, 2019

Ram HD production Saltillo assembly, Image: FCA

Just when it seemed the trade climate in the North American region was easing, President Donald Trump launched a new salvo late Thursday, promising a 5 percent levy on all Mexican goods crossing the U.S. border if the country doesn’t stem the flow of illegal migrants.

The tariff would land on all Mexican goods on June 10th, ramping up to 10 percent on July 1 before topping out at 25 percent by October. For automakers and those who sell (and buy) the final product, the prospect of a new import levy is the stuff of nightmares.

Earlier this month, the White House removed steel and aluminum tariffs imposed on the U.S.’s northern and southern neighbors while moving forward with the USMCA trade deal. The U.S. hopes to ratify the deal this summer, with CNBC reporting that U.S. Trade Representative Robert Lighthizer has submitted a draft Statement of Administrative Action, paving the way for the deal’s Congressional consideration.

While yesterday’s tariff threat mirrors past threats from the Trump administration, this one comes with a deadline. It also came on the same day Mexican President Andres Manuel Lopez Obrador sent the renegotiated trade deal for Senate approval.

Mexican goods accounted for 13.6 percent of all goods entering the U.S. last year. The tally totalled $346.5 billion, with produce and vehicles/auto components ranking high on the list.

In a statement citing the International Emergency Economic Powers Act, the White House said:

If the illegal migration crisis is alleviated through effective actions taken by Mexico, to be determined in our sole discretion and judgment, the Tariffs will be removed. If the crisis persists, however, the Tariffs will be raised to 10 percent on July 1, 2019. Similarly, if Mexico still has not taken action to dramatically reduce or eliminate the number of illegal aliens crossing its territory into the United States, Tariffs will be increased to 15 percent on August 1, 2019, to 20 percent on September 1, 2019, and to 25 percent on October 1, 2019. Tariffs will permanently remain at the 25 percent level unless and until Mexico substantially stops the illegal inflow of aliens coming through its territory.

Domestic automakers like General Motors stand to be hit hard in such a scenario. As Automotive News reports, GM exported over 811,000 cars and light trucks from its Mexican factories last year.

“Margins are so thin in the U.S. market right now that there’s no way that any automaker is not going to pass on these tariffs to their customers,” Macquarie Securities analyst Janet Lewis told the publication.

“The unknown factor is the impact on suppliers, as components can move back and forth between Mexico, the United States and Canada up to 20 times before they make their way into assembled cars.”

As one would expect, the shares of automakers with a significant Mexican footprint fell in Friday pre-trading.

[Image: General Motors]

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71 Comments on “Trump Promises Tariffs on All Mexican Goods Starting June 10th...”


  • avatar
    Hummer

    FCA had its chance to move HD production to America, as for GM I would enjoy watching them deal with a 25% tariff on their products. Good thing they built so much profit into their vehicles. I’m sure they can brush this off.

    • 0 avatar

      I assume HD was a hedge. They want to keep Mexican plants open so they can vary output depending on who is in office and if you put a lower volume higher margin vehicle there you reduce risk in case of Tariffs. .

    • 0 avatar
      Lorenzo

      Ain’t gonna happen. Mexico’s president requested a summit to settle all outstanding issues today. Mexico’s economy took a hit with the steel and aluminum tariffs, with Mexico specifically targeting an exemption in the new trade agreement.

      By sending the agreement for ratification after a long delay, the Mexican president hoped to hold off any other Trump measures, but it failed. President Lopez knows the caravans are coming from Honduras and Guatemala, and they’re getting help while traveling through Mexico.

      Whatever you think of Trump, he has an instinct for the other side’s weakness and acts on it. President Lopez can’t afford the hit to Mexico’s economy and is willing to shut down the caravan highway route, if that’s what it takes.

  • avatar
    28-Cars-Later

    “Domestic automakers like General Motors stand to be hit hard in such a scenario. As Automotive News reports, GM exported over 811,000 cars and light trucks from its Mexican factories last year.”

    GOOD.

    “Margins are so thin in the U.S. market right now that there’s no way that any automaker is not going to pass on these tariffs to their customers,”

    $2.25 an hour but margins are thin? BULLSH!T. I simply don’t believe it, and if it is true something is very wrong with their economic model.

    “Auto worker Ivan Flores spends his days transporting parts for U.S.-bound Audi SUVs at a plant in central Mexico, but he laughs when asked if he could ever buy one of the $40,000 Q5 SUVs the plant produces on his $2.25 per hour salary.

    “For us it is a dream to buy a Q5; we never could,” said Flores, 40, who supports three sons on his roughly $110 weekly paycheque.”

    business.financialpost.com/pmn/business-pmn/in-mexico-2-per-hour-workers-make-40000-suvs

    • 0 avatar
      quaquaqua

      Yep, $2.25 an hour. But just ask all those executives why they ship the jobs out of America, and you’ll hear the same thing over and over again — it’s those greedy American workers, unions are to blame, blah blah blah. Uh huh. As if there’s any way to compete with $2.25 an hour labor. And as IF those savings get passed onto us, the consumer. Nope, the executives just get richer and richer. They can afford these tariffs, but they’ll still find a way to pass it along to the consumer.

      • 0 avatar
        TrailerTrash

        Not exactly.
        Yes, there is always the American labor issue, but that is real. I remember when we were much, much younger. We were all jealous of our neighhood boys joing the auto industry and earning awhopping 25.00 per hour.
        The rest of us struggled tocontinue our education and never did reach that rookie salary.

        And it seems the more powerful, the less quality in our cars going into the seventies.

        Then there is always the US Government and its clever ability to allow companies to become more profitable by becoming more “global” than American.
        Taxes forced them to become ex-patriot companies, relocating headquarters to lower taxed places.

        Then regulations, there are just a lot of reasons.

      • 0 avatar
        28-Cars-Later

        There has to be a middle ground between things like UAW and $2.25/hr, both are extreme in opposite directions.

        “And as IF those savings get passed onto us, the consumer.”

        I’ve argued this for years and it encompasses many products. Third world materials and assembly is a detriment to the product and a discount must be forthcoming. However, when entire industries collude to the point where finished products are nearly identical, it should be up to the market to provide choice. In the US, this just doesn’t seem to happen at all.

        • 0 avatar
          Arthur Dailey

          Even worse it was happened to the ‘ice’ hockey equipment manufacturing once Nike got involved.

          For over a century Bauer produced hockey skates in Kitchener Ontario, using unionized workers.

          Nike purchased Bauer in 1994. Within a few years they moved skate production to the far east and tripled the price of skates, while manufacturing an inferior product, with very high return rates.

          Nike has since sold off their interests in hockey equipment. However prices have not returned to their previous levels. Prior to Nike’s involvement the most expensive hockey skates were manufactured in Switzerland (Graf) and cost about $200 Cdn. Within 10 years Nike/Bauer was charging in the $800 range for skates made in the Far East. Meanwhile skates manufactured in Canada and Switzerland were still selling for less than $500.

          However the Nike marketing/endorsement campaign helped to provide them with market dominance, regardless of the quality of their product. Far more spent on endorsements/marketing than on actual production.

          Does that remind anyone of any D3 companies?

      • 0 avatar
        SoCalMikester

        meanwhile honda, nissan, toyota, VW, bmw, MB, etc… all build cars here, made by american workers and paid JUST enough that they feel they dont need UAW representation.

    • 0 avatar
      SCE to AUX

      “…but he laughs when asked if he could ever buy one of the $40,000 Q5 SUVs the plant produces on his $2.25 per hour salary”

      I don’t think you’re supporting this straw man question often posed by reporters to auto assembly workers, because it’s preposterous. Unfortunately, it has its roots in Henry Ford’s claim that he would pay his workers enough to buy the cars they were building.

      But nobody asks that question of people who build Bentleys, Porsches, jumbo jets, or other expensive equipment. Even on an engineer’s wage, I couldn’t afford the stuff I’ve worked on, some of which cost close to $1 million apiece.

      • 0 avatar
        28-Cars-Later

        I was looking for a published reference on Mexican auto worker wages, I’m not arguing anything about the worker’s ability to purchase their own products a la Henry Ford.

      • 0 avatar
        PandaBear

        Stop with that “you have to be able to afford what you make” nonsense.

        If every construction worker can afford to buy a McMansion they help building, then it will never be build, and we’ll all be living in dorm rooms and eating the same dorm food every single day, like in a communist country.

        And I though you guys are all about market economy and promoting US job growth. Seriously, let the market handle the situation. Nobody is pointing a gun at your head asking you to buy an overpriced SUVs or crew cab. Nobody is banning you from buying GM and Ford stocks either.

        Maybe I’ll do my share buying made in Japan econobox, I heard they pay their autoworker pretty well compare to our own. Would that make you happier?

    • 0 avatar
      bullnuke

      The old saw about the underpaid workers South Of de Border ($2.25/hr vs $22.50/hr extremely deceiving. It assume that the cost of living in Mexico is the same as downtown Chicago or Denver. It ain’t, not even close. Though I doubt the claim of $2.25 hourly (it’s probably a bit more, around $4 to $5), it is certainly less than US workers earn but it costs much, much less to live down there. I once lived down there, have ex-inlaws currently there, and know this to be a fact.

  • avatar
    thelaine

    It’s about time. We absolutely need to get control of the border. Mexico can do MUCH more.

    • 0 avatar
      SCE to AUX

      Agreed. Mexico seems all too happy to lets its people leave, and/or to be a friendly conduit for its southern neighbors.

      • 0 avatar
        EGSE

        The Mexican government wants those people to leave. They are the motivated ones who don’t accept the status quo. If they stayed they would cause trouble for the feckless government that doesn’t know how to run an economy, can’t stamp out criminal cartels and won’t root out corruption. As well, in 2016 remittances from the U.S. to Mexico totaled ~25 billion dollars. That relieves a lot of pent-up anger which buys peace at home.

        • 0 avatar
          thelaine

          The US didn’t even react very much to the Mexican government helping Mexicans leave. It was a mixed bag, and many special interests benefited from illegal immigration from Mexico.

          It was when the Mexican government started facilitating the Central American migration that the US finally started responding. It was the final straw. The Mexican government does not act in the interest of the US and no one should expect that. In fact, on balance, the Mexican government is hostile and full of resentment and contempt for the US.

          It is up to the US government to look out for the interests of its own citizens.

        • 0 avatar
          ToddAtlasF1

          Carlos Slim owns the service for delivering those remittances to Mexico. His piece of the fleecing of the US makes him one of the richest men in the world. He used that money to buy the New York Times, which will never tell its readers the truth about immigration.

          Look for all the corrupt politicians who have sold out the American people to bray like donkeys over this.

    • 0 avatar

      As I recall actual mexicans crossing the border has fallen, it’s those passing thru that make up the biggest border crossing group.

      • 0 avatar
        highdesertcat

        That’s true, the number of Mexicans crossing the border illegally has dropped because of better economic/employment conditions within Mexico. Illegal transients are NOT allowed to work in Mexico, although many Mexicans actually do employ them in one fashion or another if they are rejected by the US.

        It is the OTM (Other Than Mexican) people who are aided and abetted by the Mexican government to pass through Mexico on their way to the US that Trump is trying to stop.

        But Trump’s new tariff on all Mexican imports effective 10 June is not new. This was suggested to previous administrations before Trump, but those administrations chose to turn a blind eye to illegal immigration because it helped keep wages down for US employers lobbying the Republicans, and an open border policy was something that the ‘crats have advocated for decades to increase their voter base, both legal and illegal, in spite of immigration laws enacted by both political parties.

    • 0 avatar
      SoCalMikester

      i guess he realizes the wall will never get built. why he didnt take this tack from day 1 is a mystery. he can also tax all the remittance that goes back over the border too, but hasnt.

  • avatar
    SCE to AUX

    “The unknown factor is the impact on suppliers, as components can move back and forth between Mexico, the United States and Canada up to 20 times before they make their way into assembled cars.”

    Who is managing *that* supply chain? That’s a ridiculous fact, if it’s true.

  • avatar
    VW4motion

    Moron trump and another dumb move.

  • avatar
    thelaine

    Legal immigration has been one of America’s great blessings. Illegal immigration has become a terrible curse. Those who oppose border control because they hate the president are just TDS doomsday cultists.

    • 0 avatar
      highdesertcat

      Both MY parents were LEGAL immigrants, got here with passports, came through a Port of Entry (Hoboken), got Green Cards, and became Naturalized US Citizens at the earliest opportunity (5 years after arrival in the US).

      President Trump is the first US President to do something about illegal aliens, by enforcing existing laws, and which way he can, when he can.

      BRAVO TRUMP!

    • 0 avatar
      SoCalMikester

      i think most people, even democrats want border control. the wall is an expensive placebo that isnt going to do anything. ladders and tunnels do exist. and a lot of his faithful hate illegals but hire as many as they can to do the actual work americans wont.

  • avatar
    redapple

    Illegals in the US take welfare/food stamps at 2x the rate of native borns.

    What sane country allows this?

    https://www.washingtonexaminer.com/washington-secrets/census-confirms-63-percent-of-non-citizens-on-welfare-4-6-million-households

    • 0 avatar
      JimZ

      Hispanics only are a plurality of TANF recipients and only by 6%. Hardly “2x”. White people are the largest recipients of SNAP and Medicaid.

      any other lies you want to keep repeating?

    • 0 avatar
      APaGttH

      Dude – your stats are from 2014 for starters. Here is the source:

      https://cis.org/Report/63-NonCitizen-Households-Access-Welfare-Programs

      Second, of those receiving benefits, 93% have jobs – you left that part out.

      Third, you’re having fun with statistics as the percentage doesn’t reflect the “total number,” with the total number of white recipients far exceeding those who are — brown.

      Fourth, as indicated in the above source, the stat is for “households headed by a non-citizen.” That doesn’t mean that their spouse and/or children are NOT citizens and thus of a different race or mixed race.

      Fifth, as indicated in the above source, the immigrant head of household is typically not eligible to receive benefits, and benefits could be as minor as free school lunches to their citizen children. Reminder, the school lunch program is not a hand out, but has its roots as a strategic program developed in part by the military after World War II. During World War II a full one-third of inductees showed up for BASIC malnourished and incapable for training. The school lunch program was created to ensure that children received proper nutrition to be ready for the draft.

      Look it up.

    • 0 avatar
      SoCalMikester

      no they dont. might as well be posting “facts” from fox news.

  • avatar

    Trump is going to tax the American People because Mexico is not fixing crushing poverty and gang violence in El Salvador and Guatamala.

    K

    • 0 avatar
      cdotson

      You presume, incorrectly, that the consumers downstream of the tariff are going to just bend over and take it. The implicit threat of such a tariff is the decrease in demand for the taxed product as consumers elect to decline to purchase in light of the increased price, buy a substituting product instead, or buy the same item from somewhere else. This may impart costs to the consumer that are likely less than the cost of the tariff. The end result is that Mexico loses business, not that Americans pay a tax (although some may prefer to pay the tax in lieu of the aforementioned options).

      • 0 avatar
        APaGttH

        Good luck finding an alternative vehicle that doesn’t have at least some content Heche en Mexico. It isn’t just final assembly, and there are massive car part operations south of the border. Consolidation post Great Recession means that multiple OEMs use the same suppliers and same assemblies.

        Remember, Japan argued letting GM and Chrysler die would be devastating for them with the ripple effect of the suppliers it would put out of business. Then, after the Japan 2011 earthquake, impacted Japanese manufacturers turned to Mexico to diversify their supply chain to prevent total disruption.

        The consumer will pay – or elect to defer a purchase. Deferment means a slowing economy and lost jobs. These jobs are never, EVER, coming to the United States again no matter what. The concept of dual-tier pay in the auto industry has been a disaster, and a number of manufacturers have abandoned the practice. Do you really suggest Americans should build these parts at the same fully burdened pay rate of around $5.50 an hour??? Is that, “greatness.”

        If not, and they are built in America (USA! USA! USA!) at even the going entry-level rate of $17 an hour (and that’s pay, not fully burdened, which would be closer to $23 an hour) SOMEONE is going to pay for that 417% increase in labor costs, and it isn’t going to be the manufacturers.

        Of course you can always finance that new vehicle for 120 months with no money down…’merica!

      • 0 avatar

        It’s a both thing, it switches behavior but it also raises costs. If your shopping 1 ton tucks from the big 3 2 of those options are going to be hit with big tariffs and even the third has a number of components (15-20%) that come from mexico so no matter what the price goes up on an entire category that will be paid by US citizens.

        You also have the fact that if your competitors pricing goes up you have little incentive to lower your prices or offer discounts. So say half of you competition is hit heavily by the tariff but you and some other companies are not. At the very least your far less likely to offer a discount and at worst you raise your prices.

  • avatar

    Not sure this link will work but Marketplace had an interesting story last night on how tariffs change things in unseen ways. Basically how clothing companies work around tariffs instead of moving production to the US interesting read actually.
    https://www.marketplace.org/2019/05/29/theres-a-reason-your-columbia-shirt-has-a-tiny-pocket-near-your-waistline/

  • avatar
    tylanner

    The mindless wrecking ball strikes again….but theses are comically hollow threats…..

    Enforcing 25% tariffs would likely get him impeached…or beat 70-30 in 2020…

    And everyone knows this….classic sign of desperation…

    • 0 avatar
      28-Cars-Later

      So the solution is continue to roll over as this nation has for forty years… or do you have a suggestion?

      • 0 avatar

        It would seem working to improve conditions in other countries is actually pretty effective. See the drop in Mexicans arriving here. Using a carrot and a stick may be better then just a stick that has negative effects in your own country. Targeted tariffs and the promise of funding for Mexico or other incentives if they give out more work visas to slow the movement thru the borders for instance.
        On another note if we actually did enact across the board tariffs I would imagine it might make the situation worse. The Mexican economy would take a hit and there would be incentive to smuggle goods around official borders. Which would cause in increase in crime activity around the border and cause more people to try and flee to the US.

      • 0 avatar
        JimZ

        *whistle*

        Personal foul, False Dilemma. Player claimed the only options were two extremes despite a range of possible actions in between.

        Ball will be placed at the spot of the foul, automatic 1st down.

      • 0 avatar
        tylanner

        Please define “roll over”…..

  • avatar
    schmitt trigger

    The real and long term solution is a sweeping immigration reform and strictly enforce the updated laws. Enforce with a capital E.

    Unfortunately, this is far easier said than done. It would require hard work from a solid bipartisan coalition. It would be a long process, more likely spanning more than one presidential term.

    With Washington’s utterly dysfunctional system however, I don’t think I’ll see such a reform in what remains of my lifetime.

  • avatar
    DenverMike

    Just so we’re straight, it’s perfectly legal for illegals to work the orchards, ranches, dairies or wherever, as long as the right senators get their payola, except it’s illegal for illegals to exist anywhere outside of the job site, but it’s the fault of Mexico and other South American countries that illegals get such amazing job opportunities?

    So if the US can’t keep them out, how exactly do they expect their home countries to keep them “in”?

    And every time IRS intelligence fails to detect a single SS# working some 300 jobs simultaneously, it’s the fault of Mexico and beyond?

    • 0 avatar
      FreedMike

      Illegal immigration exists mainly because there are companies willing to hire illegal immigrants. If we went after these lawbreakers – and I’m talking about escalating fines that start at six figures, or jail time – then agencies like ICE would be freed up to go after the REAL threats, like the cartels. Instead, they spend their time running down some poor slob making four bucks an hour washing dishes, cleaning houses, or picking fruit without a green card. Ridiculous.

      But we don’t go after these companies, and you hit the reason why on the head – they have a lobby. And I bet the cartels do too.

      As with everything else…follow the money.

      • 0 avatar
        Arthur Dailey

        Hear, hear. Tell it brother!

      • 0 avatar
        highdesertcat

        FreedMike, “Illegal immigration exists mainly because there are companies willing to hire illegal immigrants. ” This requires a little clarification.

        The whole “illegal” immigration thing started AFTER WWII ended. Guest laborers did not return home to their native countries, but went underground instead.

        After Pearl Harbor the call went out to Americans to volunteer and join the armed forces. And they did.

        This left a huge void of laborers when these American guys left their jobs to join up. The US government then invited foreign laborers to come to the US LEGALLY to work the jobs left vacant by the Americans who had gone off to war.

        Those were the days of the Brazeros, or guest laborers.

        When WWII ended, all these laborers were supposes to go back to their countries of origins, but most of them stayed. Meanwhile, their family members and friends in their countries of origin saw how well they were doing and moved to join them even though they were not authorized to do so.

        Add to this the complication that many of these guest laborers had children born in America during those War years, and it all unraveled into the chaos it has become today because of the immigration laws’ intricacies like Chain Migration, the Mariel Boatlift exemptions, and other well-meaning legislation that had unintended consequences.

        President Trump is actually enforcing the current immigration laws on the books; the first US President to ever do so.

  • avatar
    James Charles

    By the way Trump is managing trade he’s going to force the US public into smaller more affordable imported vehicles. The US will not need higher gas prices for this to occur.

    Mexico and China are the worlds two largest producers of automotive parts. All these parts just don’t go to the US, they are used in many countries for vehicle assembly.

    Some in the US need to realise the US is not invincible and careful planning and policy needs to be developed and tested.

    Why doesn’t the US try and develop the more impoverished Latino countries to reduce the immigration issues? It worked with Mexico.

    As for the US drug issue, why doesn’t Trump first have an all out assault curbing US need for the drugs? No market, no drugs.

    The drug industry is a multibillion dollar industry, so, I assume billionaires and the mega rich control it. What country has the most billionaires and mega rich? So, what country would you think promotes the Mexican drug industry? Just look at Oxycontin, Endone, etc and all that was legal!

    Wake up America and be realistic.

  • avatar
    Arthur Dailey

    The USA reaping what it has sown.

    Invading Mexico and annexing a significant proportion of the Mexican nation.
    Creating a failed state in Mexico, due to drug cartels, who make their money from the American demand/market for illegal drugs.

    What if the government of Mexico should make the production, distribution and sale of narcotics (cannabis, hashish, cocaine, heroin, oxy, fetanyl, etc) legal? It could then tax the proceeds and derail the crime associated with the drug trade.

    Then how would the American government react?

    As for those decrying illegal immigration, prior to 1890 there were no controls or requirements regarding anyone arriving on American soil. It is only after 1882, with the exception of controlling Chinese immigrants, that the U.S. government enacted immigration rules/controls.

    • 0 avatar
      EGSE

      “Invading Mexico and annexing a significant proportion of the Mexican nation.”

      So Canada is a confederation of native tribes that have been here for thousands of years? Or Mexico for that matter?

      “As for those decrying illegal immigration, prior to 1890 there were no controls or requirements regarding anyone arriving on American soil. It is only after 1882, with the exception of controlling Chinese immigrants, that the U.S. government enacted immigration rules/controls.”

      But this is not 1890. Tell me how many countries have open borders with no restrictions today.

      • 0 avatar
        Arthur Dailey

        1) Mexico was an established and recognized sovereign nation. The USA invaded and annexed its territory, by force of arms.
        2) Many of those who decry illegal immigration are the descendants of those who arrived in the USA prior to any immigration controls. Therefore how are their ancestors better, or more legitimate than the current economic refugees attempting to enter the USA?

  • avatar
    Steve203

    “Margins are so thin in the U.S. market right now…”

    If that were so, then why are the big three constantly bragging about ever higher transaction prices, ever higher margins and reduced incentives?

    A couple months ago, Trump threatened to entirely close the border. Closing the border would shut US auto plants within days because the supply chain not only crosses the border, but has little to no inventory on hand.

    The autoworkers laid off as a result of the parts shortage would blame Trump.

    By imposing a tariff, US plants do not shut for lack of parts, but the price of the finished car goes up, more.

    No autoworkers are laid off as a direct result of the tariffs, so Trump isn’t blamed.

    As the big three are constantly raising prices, and volume is falling, anyway, the tariff’s effect will be hidden in the existing trend.

  • avatar
    Robbie

    If I can refocus the discussion on the auto industry…

    It is clear that Trump’s move will create huge uncertainty among auto makers about their supply chains for many years to come. Certainly parts contracts and billion dollar investments and will now be subject to possibly be taxed, with no means of predicting the effective purchase price or return on investment. Perversely enough, building cars inside the US may now become less attractive, in view of pricing unpredictability.

    Can anyone chime in on possible consequences to the car industry?

  • avatar
    Charliej

    The stupidity of so many people who write on here is breathtaking. So many people who have never been to Mexico can recite all the things wrong with it. In actuality Mexico is not too bad a place. The low pay they whine about all the time by people who know nothing about pay here at all. Mexican auto workers make six to eight dollars an hour depending on who they work for. What do maids make in Mexico? Once again, it depends on who they work for. If they work for gringos they make pretty good pay. My maid is paid five dollars per hour. This is a typical wage for a maid in an area with a lot of American and Canadian citizens. Mexico has a thriving middle class. I live in a middle class neighborhood in a small town in the mountains of central Mexico. Everyone who lives on my street owns at least one car. These are all Mexican citizens. As a matter of fact I am the only native English speaker on my block. It helps me to work on my Spanish. Mexico’s middle class is much healthier than the middle class in the US. Americas working people are getting screwed by both the government and the rich. As a result America’s middle class is slowly disappearing.

    Others have pointed out that costs in Mexico are nowhere near what the are in the US. This is very true. My last visit to a doctor set me back fifteen dollars. This was for an exam and an EKG as I have had a number of heart attacks in the past. Food is quite cheap as well. I like to go to the food court at the local casino for lunch and dinner. A Chinese dinner, one entree, rice or noodles and an egg roll is two dollars and a quarter. Going to a restaurant can be very inexpensive or quite expensive depending on how high class the restaurant is. But I plan my budget around meals costing six dollars including drinks and tip.

    One of the great things about living in the mountains of Mexico is the climate. Not too hot and not too cold. Houses here are built with no heater and no air conditioning. They are just not needed. As a result my electric bill averages about four dollars per month. My telephone and internet bill is twenty dollars per month. There is no natural gas here. You use propane for cooking and water heating. Propane runs about fifty dollars per month.

    I am retired and living on social security. I absolutely could not do that in the US. Here I manage to save a few hundred dollars per month. One thing I neglected to mention is that I live in a resort area. On one side is a resort for the Mexicans who mainly live in Guadalajara. On the other side is a resort for the Americans and Canadians who come down for vacations. It is the slow season now. The snow birds have gone home. This time of year there are about twenty thousand Americans here and close to that same number of Canadians. When the snow birds return the number of expats will roughly double.

    Here is something else to think about. There are more Americans heading south into Mexico to live than there are Mexicans heading north to live in America. The US State Department says that there are over one million Americans living legally in Mexico. The State Department also says that there is another million living in Mexico illegally. The illegals are mostly people who came in on a tourist visa and never left. In contrast to the US, Mexico does not look for these illegals. If they get caught they can go back to the US or they can pay a small fine and become a legal immigrant.

    By the way, I did not mention crime because I don’t know about crime. In the many years that I have lived here I have had no problems with crime at all. Mexico is not what the know nothings imagine and it is not what the cowards imagine either.

    • 0 avatar
      highdesertcat

      Thank you, Charliej, for your comment.

      My experience with Old Mexico has been very much the same as yours. Mexico has been good to me, has been good for me and it is dirt-cheap to live in Mexico; a lifestyle I could not imagine in the US, not even in the Great State of New Mexico, The Land of Enchantment.

      We employ a lot of people, to drive us around, to maintain and clean-up the property, to cook our meals, to go shopping for us and with us, to advise us, etc etc etc.

      My brothers and I own a Villa within walking distance of the ocean in Ensenada, Baja California, Mexico, where the two of them live full-time, year ’round, with their wives, while my wife and I visit as often as we can for an extended stay. It is a wonderful place!

      Each time we go to stay there, we register with La Policia upon arrival, they make a copy of our Passports and wish us a safe and enjoyable stay.

      Never known or experienced any crime as the “locals” are very protective of the hundreds of American ex-pats living here.

  • avatar
    TotalNonStopCars

    Wow. What a bunch of crybabies.

  • avatar
    DeadWeight

    PUTTING THE GUADALAJARA IN GUANGZHOU-GUADALAJARA MOTORS! “GUADALAJARA MOTORS imported 811,000 vehicles from MEXICO in 2018.”

    “General Motors stand to be hit hard in such a scenario. As Automotive News reports, GM exported over 811,000 cars and light trucks from its Mexican factories last year.”

    Support General Motors, which supports China and Mexico! Buy American…buy a RAM, F-150, Accord or Camry!

  • avatar
    namesakeone

    Why (and I sincerely ask anyone who cares to, please enlighten me) do I think that, if America does manage to shut down the Mexican border, that the automakers (and producers of pretty much any consumer good that requires substantial assembly) will be looking to China? Or any other third-world nation they can spell?

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