Border Tax to be Lower than Projected

Since November 7^th, the threats of an increased border tax have loomed over Mexican manufacturers. Many manufacturers have felt uneasy, however, recent news may help put doubts and worries to rest.

Tom Barrack, head of Donald Trump’s inaugural committee, recently stated in a CNBC interview that any “border adjustment tax” that is put into place will likely only be 10%, which is welcome news, compared to the anticipated 20-35%.

While there is still much up in the air regarding the border tax, this can already be viewed as a softening in the previous hard line stance and welcome news to many manufacturers in the US.

In our experience, even with a 35% border tax industries that demand a skilled and talented workforce such as aerospace, medical devices, automotive and high tech electronics can save from 30% to 15% by manufacturing in Mexico.

For more information, contact IVEMSA, the Mexican manufacturing expert, and watch the entire CNBC video.