SAN DIEGO (NEWS 8) – The president of the United States on Tuesday renewed his threat to close the southern border saying security is more important than trade.
In the United States, the auto industry could be one of the hardest hit by a border shutdown because of the number of car parts imported from Mexico.
It would only take a week’s time to shutdown the country’s auto industry if the crucial auto parts supply chain from Mexico is disrupted – a disruption that could impact everything from jobs in the United States to the price of cars.
Alan Gin is professor of economics at the University of San Diego, and said, “It would have some serious economic consequences. It has been estimated that the auto industry would shut down probably within a week."
The U.S. auto industry is dependent on essential auto parts produced in Mexico and shipped in to our county. If those parts are no longer available, the brakes would be placed on car production in short order.
“You can’t have missing parts. If you are missing one then you can’t produce at all,” said Professor Gin.
There are roughly a million Americans currently employed by auto assembly or parts plants. Their livelihoods would also be jeopardized by a border closure. Currently, auto sales are sluggish, and an industry shutdown could potentially impact what consumers end up paying for a new car.
Aside from decimating the auto industry, the potential border shutdown could impact everything from the avocado industry to beer production.
Members of the president’s own administration have advised against a border shutdown. The president said he plans to take action within a week.