Shifting Automotive Production from Mexico to the U.S.: A Cost Analysis beyond the 25% tariff

The article compares the cost of automotive production in Mexico versus the United States. It shows that shifting production north significantly increases costs, with material prices rising by 30%, direct labor costs tripling, and indirect labor also going up. As a result, total costs before profit climb by nearly 67%, which is significantly higher than the 25% tariff applied to products made in Mexico.