Why The U.S. Will Win Any Trade War

Zero Hedge: Fiat CEO Warns May Shut All Mexico Production If Trump Tariff Too High

Agree with his proposed policies or not, it's difficult to argue that Trump is delivering on his promises to the autoworkers of the Midwest who single-handedly voted him into the White House. Before even taking office, the mere threat of import tariffs has caused Ford to cancel the construction of a $1.6 billion new facility in Mexico, and has automotive CEO's from Toyota to Chrysler walking on eggshells as they carefully try to flaunt all of the capital investments they're making in U.S.-based facilities.

While likely secretly hoping for the status quo, Fiat Chrysler's U.S. CEO, Sergio Marchionne, admitted earlier today that if Trump's import tariffs are "sufficiently large" he would be forced to shutter all of his manufacturing capacity in Mexico as it would be rendered "uneconomical." Per the FT:

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WNU Editor: The U.S. market is the biggest in the world .... that is a hell of a lot of leverage when it comes to negotiating trade deals. Not surprising .... countries are getting in line to make a deal. Case in point .... Mexico Pledges Cooperation Not Capitulation in Trump Talks (Bloomberg). Top Canadian officials met Trump team for trade talks: paper (Reuters). And .... Toyota Announces Plans to Invest $10 Billion in the U.S. (Fortune). But the real action is when this happens .... Trump Is Set To Label China A "Currency Manipulator": What Happens Then? (Zero Hedge).