Ahead of his inauguration on Friday, US president-elect Donald Trump has taken on the Mexican car industry, saying that cars built in Mexico and imported into the US will face a 35% import tax.
Mexico has experienced a considerable boom in its car industry in recent years, as manufacturers look to take advantage of cheaper labour and ease of trade access into the US, which, according to some - including Trump - is to the detriment of American car-building jobs. The decline of the city of Detroit is a prime example of this.
Manufacturers have responded in a variety of ways, and as Trump carves his way into American history, the car industry looks for the moment to be his biggest target.
Trump v Hyundai
Trump’s vow to introduce a 35% import tax came shortly before Hyundai raised its investment in the US from just over $2 billion, to $3.1bn (£2.5bn) over the next five years, says Reuters.
Currently, Hyundai builds more than half of its US model range domestically, and has facilities in Alabama, Michigan and California.
Statement from Hyundai to come.
Trump v BMW
BMW has been more troublesome for Trump; the president-elect took on the car maker directly, criticising the Munich-based brand for its current Mexico plant and plan to expand its manufacturing operations there.
A German news site reported that Germany’s deputy chancellor advised the US to “build better cars,” when asked how the US could ensure more American cars are bought in Germany.