Why will your next vehicle cost more? The new trade agreement with Mexico may add a few thousand more to your cost. Every Mexican working on the parts or final assembly will have their pay at least doubled to $16.00. Many make less than $8.00 per hour now. Imagine a Mexican worker getting more than $30,000 each year. They will live like drug lords at the American consumer’s expense.
The agreement may cut back on the number of parts from other countries like Japan, Guam (American possession), China, and Eastern Europeans like Poland. If the parts were currently made cheaper elsewhere they will be moved to Mexico raising the vehicle prices more.
As of Thursday, August 29, the Canadians have our negotiators over a barrel since the negotiating power expires tomorrow night. The Mexican agreement goes away tomorrow night. Congress requires all three to agree. It is all three or nothing and the Canadians know it. Let’s see how far they can push their Canada first policy. Even Republicans in Congress are beginning to rebel against his tariffs.
If I was going to buy another vehicle, I would buy one setting on the car lot now to save the increase caused by the great new trade agreement.