June 4, 2019
(Reuters) – Navistar International Corp, which makes most of its trucks in Mexico, said on Tuesday it was too early to assess the impact of possible U.S. tariffs on the country on its operations.
The company is working with trade associations and continues to monitor situation regarding tariffs, Chief Executive Officer Troy Clarke said on a post-earnings call with analysts.
Last week, President Donald Trump threatened to impose 5% tariffs on all Mexican imports starting on June 10 if the country does not halt the flow of illegal immigration across the U.S.-Mexican border. The tariffs would increase monthly to up to 25% on Oct. 1.
For years, carmakers and auto parts suppliers have built vehicles and parts in Mexico, taking advantage of the country’s cheap labor, trade deals and proximity to the United States, the world’s second largest auto market after China.
(Reporting by Shanti S Nair in Bengaluru; Editing by Anil D’Silva)