Billions of dollars of German auto manufacturing (assembly) investment in Mexico were just vaporized by President Trump.
This is a very big kick in the teeth to Germany. Previously in a long-term strategy to avoid U.S. tariffs, German automakers invested billions in auto assembly plants in Mexico. Ex. the BMW parts were shipped from Germany and the cars assembled in Mexico. Now that investment is worthless as the vehicle will be taxed at a rate of 25% regardless of whether it is assembled in Germany or Mexico.
It cannot be overstated how big a hit this will be to the German economy specifically. That’s why EU President Ursula von der Leyen is couching her words very carefully.
Germany drives the economic engine of the EU, and the Germans care about their money far more than they care about the security of Ukraine.
“As I have said before, tariffs are taxes – bad for businesses, worse for consumers equally in the US and the European Union,” European Commission President Ursula von der Leyen said in a statement. “We will now assess this announcement, together with other measures the US is envisaging in the next days.”
The EU outlook, specifically financial support, toward the EU/NATO Ukraine strategy will change in 3.... 2....1....
Next up, in late 2023 the Chinese auto firms carrying the Blackrock investment money, then made big announcements.
“BUSINESS INSIDER – Three major Chinese EV companies are planning to build new factories in Mexico, sparking concern among US officials, according to a new report. MG, BYD, and Chery are all looking at sites to build new factories in the country, according to unnamed sources cited by The Financial Times, and this investment is causing angst in Washington.”
The total investment in Mexican auto plants, specifically to build Electric Vehicles (EVs) for the USA market, exceeds $5 billion. A very big investment.
Now, worthless.
businessinsider.com/chinese-ev-com…
(1) The interests of Blackrock determined the Biden White House key staff and policy makers. (2) The Donilon clan represented those Blackrock interests and worked inside both the Biden White House and State Dept to create and maintain policy favorable to Blackrock’s Chinese EV position. (3) China/Blackrock invest massively in Mexican EV production. (4) White House/EPA then generated policy to support the Blackrock investment.
That’s how the three Chinese auto firms could be so sure of their decision in 2023 to invest in the Mexican Blackrock EV plan. The one that President Donald Trump rightly says will create a “bloodbath” in the U.S auto industry.
It is not the politicians; it wasn't Biden, they are mere functionaries.
What I am saying directly is that Blackrock was the origin of the policy, and Blackrock was planning to be the beneficiary of the Biden policy they helped create.
This is what I mean when I keep saying, “there are trillions at stake,” and “it’s not simply the politicians we should be looking at.”
President Trump steps in and America First begins cutting each of those financial tentacles. K-Street is apoplectic. Imagine how much anger is within the Board of Blackrock right now?
Trillions at stake. This example is only their investment in China, surfacing in Mexico, now destroyed by President Trump.
What would they be willing to do?
Now look at where Blackrock investment has been pre-deployed, and that’s where you see Biden policy coming into play. Blackrock and JPMorgan set up the Ukraine reconstruction bank.
That’s the core of the current Ukraine issue. It’s not ideological, it’s financial. Follow the money.
ft.com/content/3d6041…
The U.S. government didn’t construct the Russian sanctions, Blackrock did!
Blackrock lays the foundation with the construction of Russian sanction policy. Biden Treasury executed the plan. It's not ideological, it's financial.
RELATIONSHIPS – Larry Fink (Blackrock) and Jamie Dimon (JPMorgan) created the Ukraine Reconstruction Bank. Now, there are only two real threats to the creation of a US-CBDC as it currently appears. Threat #1 is Donald Trump. Threat #2 is the way people would work around the dollar based CBDC, unregulated crypto currency.
Who opposes crypto currency?
“I’ve always been deeply opposed to crypto, bitcoin, etc.,” Dimon said in response to a question from Sen. Elizabeth Warren, D-Mass. “The only true use case for it is criminals, drug traffickers … money laundering, tax avoidance because it is somewhat anonymous, not fully, and because you can move money instantaneously. “If I was the government, I would close it down.”
Can you see it now?
It's critical people understand what is going on.
All of the underlying motives for everything we have seen geopolitically, are interconnected financial benefits to a very small group.
newsmax.com/newsfront/jpmo…
Back to Germany.
German automotive suppliers have more than 330 locations in Mexico [according to German car lobby VDA].
EXAMPLE OF IMPACT - When the 25 percent tariff goes into effect, Audi (a subsidiary of Volkswagen) has no U.S. production sites.
The Audi brand access to the U.S. market is 100% dependent on Mexico, including for manufacturing the Q5 SUV, its top-selling U.S. model.
Volkswagen’s most popular model for American consumers is the Tiguan, an SUV that is entirely manufactured in Mexico. The German automaker sold over 30,000 of the vehicles in the final quarter of last year, a nearly 50 percent year-over-year increase.
But wait, it gets worse....
French-Italian-American automaker Stellantis is the most exposed of Europe’s automakers as it makes Jeep and RAM models in Mexico.
The tariffs will make European automakers’ Mexican factories completely redundant. They could make them in Germany for the same tariff impact. Making them in Mexico is now useless.
They were only being made/assembled in Mexico to gain access to the U.S. market without tariffs.
This will force all EU automakers to shift production to the U.S. There could also be an explosion in UAW membership depending on where in the USA the EU car companies end up manufacturing.
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