About 70% of the vehicles Japanese car makers sell in the U.S. are made in the U.S., but a tax on cars exported from Japan would "clearly be a major headwind," Marcel Thieliant and Mark Williams said in a report issued Friday.
White House Press Secretary Spicer said that taxing imports from Mexico would generate US$10 billion a year and "easily pay for the wall."
Most drugs entering the US sneak through legal ports of entry, not through fence-less wilds, and not a single person involved in a terrorist act in the US is known to have illegally entered the country from Mexico.
Korean automaker KIA will export cars made in its new Mexico plant to South America, the Middle East and Africa instead of the U.S. amid Trump's threats of imposing a 'big border tax'
Trump's actions could fundamentally change the American stance on immigration, as well as further testing relations with Mexico.
Mexican Foreign Minister Luis Videgaray and Economy Minister Ildefonso Guajardo will hold talks with top Trump officials in Washington on Wednesday and Thursday, where security, migration and trade will be discussed
Mexico's Economy Minister Ildefonso Guajardo said Tuesday that "if we are going to go for something that is less than what we have, it makes no sense to stay."
Overall, nearly 2 million vehicles were shipped to the US from Mexico in 2016 by all automakers, and that volume is expected to rise by 14.5% this year
Any change in U.S. tax policy that affected imports would have to be countered with a "mirror action" in Mexico, said Mexico's economy minister.
Trump's remarks came at the start of a meeting at the White House with union leaders.