Trump’s Tariffs Already Hurt Mexico — Even If They’re on Hold
Regardless of the tariffs’ ultimate fate, Mexico’s appeal as an investment destination for companies seeking access to the US has suffered irreparable damage.
That was then.
Photographer: Julio Cesar Aguilar/AFP/Getty Images
“We're definitely making the factory in Mexico. We feel very good about that. We put a lot of effort into looking at different locations and we feel very good about that location. We are going to build a factory there and it's going to be great.”
Oh, those great days when Elon Musk had such rapport with Mexico that not only was he planning a “gigafactory” in Monterrey, he also got a dedicated crossing lane at the border to expedite auto parts for Tesla Inc. into Texas. It sounds like ages ago, but Musk made the comments in October 2023, at the peak of the post-pandemic supply chain turmoil, when companies were desperately trying to relocate out of China for geopolitical reasons, and Mexico was seen as a prime alternative (remember “nearshoring”?).