🧵 1/ Mexico benefits from U.S. trade war as Chinese companies move production facilities to Mexico, using Mexican components to enter U.S. market through USMCA. #business
🧵 1/ Mexico benefits from U.S. trade war as Chinese companies move production facilities to Mexico, using Mexican components to enter U.S. market through USMCA. #business
🧵 2/ Chinese components brought to Mexico undergo "substantial transformation" to change product origin to "Made in Mexico," avoiding tariffs on products.
🧵 3/ Sectors like automobiles and textiles are key in determining product origin; products must undergo significant transformation to change economic nationality.
🧵 4/ Shift in manufacturing to Mexico from China impacts European companies, changing dynamics in global production and trade.
🧵 5/ European companies transitioning production from China to Mexico in response to shifting trade landscape and emerging opportunities in North America.
🧵 Read more at: https://www.cnbc.com/2024/09/20/china-mexico-backdoor-trade-booms-in-trump-biden-tariff-era.html