The election of Mr. Trump as the President of the United States
has created considerable uncertainty regarding the U.S. investment
climate. Chief among these uncertainties is the status of the
North American Free Trade Agreement (NAFTA), which President-Elect
Trump repeatedly attacked for leading to the loss of U.S.
manufacturing jobs. President-Elect Trump has vowed to
renegotiate the Agreement and, if an acceptable renegotiation
cannot be reached, to withdraw from NAFTA.
Many automotive companies have established multinational supply
chains, relying on the free trade provisions of NAFTA, including
its promise of a stable investment environment and no duties
between Canada, Mexico, and the United States. With automotive
companies essentially treating the three countries as a single,
integrated supply chain, no industry has a greater stake in how
President-Elect Trump implements his NAFTA campaign promises, or
has more questions about the likely future of the country.
