00:00¿Could Mexico's economic miracle be coming to an end?
00:03Puebla is the center of Mexico's car manufacturing industry.
00:06But higher US tariffs could soon put the brakes on its economic boom.
00:10The livelihoods of hundreds of thousands depend on it.
00:13Even marginal tariff increases could make these cars too expensive for US buyers.
00:18Volkswagen, Nissan and General Motors are some of the auto giants with production facilities in Mexico.
00:23It's cheaper because of lower wages.
00:25The vehicles are destined for the US market.
00:27For now, the US-Mexico trade deal is still in place.
00:30But for how long?
00:43If sales fall, companies might have to make cuts to production or labor costs.
00:48At the same time, alternative markets are to be explored in countries with free trade agreements with Mexico.
00:53So far, German car makers haven't changed their investment plans or made moves to relocate from Mexico.
00:59But new investments might be harder to get in the future,
01:02since Mexico has slipped to last place on Kearney's Institute FDI's Confidence Index,
01:07a ranking of the most attractive markets for foreign investment.
