Republican Presidential candidate Donald Trump appeared in Grand Rapids, Michigan on Monday, once again using the public arena to criticize Ford Motor Company’s forthcoming $2.5 billion expansion in Mexico.
The Detroit News reports that Donald Trump again threatened imposing punitive taxes on the automaker, for “every car, bumper and part” that Ford manufactures across the border and ships into the US. The punitive tariff would have a rate of 35%, said Donald Trump, although it could be hiked up to 40% if Ford CEO Mark Fields harshly refuses to move that production out of Mexico and back to the US. “I’m a free trader, but we can’t be stupid traders,” said Donald Trump.
Donald Trump’s proposed punitive tariffs against Ford Motor Company would violate NAFTA (the North American Free Trade Agreement), signed into law under the Bill Clinton administration in the 1990s. As such, Congressional approval of such a tax would most likely be required, reports the Detroit News.
This is far from the first time that Donald Trump has singled-out Ford Motor Company for criticism; the Republican Presidential candidate floated such an idea before, and even Tweeted premature news of a victory, mistakenly citing Ford’s plans to shift production of the F-650 and F-750 to Avon Lake, Ohio as proof. This prompted a corrective response from Mr. Fields.