The issue is basic to the construct of the USMCA (NAFTA replacement).
BMW made a multi-billion-dollar investment in Mexico in anticipation of exploiting the NAFTA loophole.  President Trump has closed the loophole.  The new USMCA agreement requires 75% of automobile parts made in North America; and 45% must come from plants with minimum labor costs ($16/hr), or face tariffs upon export to the U.S.
As a result BMW is now considering opening those higher-wage component supply operations in the U.S.

LOS ANGELES (Reuters) – BMW (BMWG.DE) is considering a second U.S. manufacturing plant that could produce engines and transmissions, Chief Executive Harald Krueger said on Tuesday, shortly after a report that U.S. President Donald Trump would impose tariffs on imported cars from next week
[…] BMW is considering changes to U.S. operations as sales in the region grow, Krueger said. BMW has a U.S. vehicle assembly plant, in South Carolina, is planning to open a Mexico factory next year, and is considering changes to its current scheme of importing engines and transmissions.

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A small but interesting development in the relationship between the U.S. and Mexico highlights a backstory CTH suspected several months ago {Go Deep}. August 25th:

As USTR Robert Lighthizer was working with the trade officials representing outgoing Mexican President Peña Nieto, White House adviser/emissary Jared Kushner was quietly working behind the scenes with AMLO trade adviser Jesus Seade and outlining the possibilities if they partnered with strategic economic objectives in mind.
As a result of Kusher’s dogged efforts to bring an entirely new dual-nationalist ‘focus’ within the trade construct, removing the historic globalist baseline, the outcome of the trade deal is excellent for both the U.S. and Mexico.  So today:

MEXICO – […] Kushner will receive the prize “for his contributions to achieve the negotiation of the new United States-Mexico-Canada Agreement (USMCA),” according to a statement by Mexico’s Foreign Relations Secretariat.
Peña Nieto will present Kushner, President Trump’s son-in-law, with the award on Thursday at the Group of 20 summit in Argentina, according to the Reforma newspaper.

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Press Secretary Sarah Sanders, National Security adviser John Bolton and National Economic Council Chairman Larry Kudlow hold a very important press briefing from the White House.
Chairman Kudlow discusses current economic issues, and the upcoming possible trade discussions with China at the G20 meeting in Buenos Aries, Argentina. At 19:00 minutes NSA John Bolton takes over to discuss the scheduling details of the G20.  [Interesting trilateral mentioned: Trump, Modi and Abe] At 30:00 minutes Sarah Sanders takes over.

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Actions have consequences.  Mexico says they will deport those who attempted to illegally cross the U.S-Mexico border earlier today.
Nice to see a new Mexican government perspective stepping up here to punish unlawful behavior at the border…. though I’m certain the thought of the President Trump closing the border was likely the factor at play.

MEXICO CITY (Reuters) – Mexico will deport migrants from a group of 500 who on Sunday tried to “violently” and “illegally” cross the U.S. border, the Mexican Interior Ministry said in a statement.
The statement added that Mexican authorities had contained the protest at the crossing between Tijuana and San Diego and that, despite heightened tensions there, Mexico would not send military forces to control 7,417 migrants from a caravan currently amassed at the U.S.-Mexico border. (link)

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Canadian media are reporting that General Motors plans to shut down operation in Oshawa, Canada.   This is quite possibly an outcome that portends the sign of things to come…

CANADA – Numerous sources have told CTV Toronto that General Motors is planning to close all operations in Oshawa, Ont., affecting thousands of high-paying jobs.
The announcement is expected to be made on Monday, in the city of about 159,000 people located roughly 60 kilometres east of Toronto.  Sources said they believe the Oshawa closures are part of a global restructuring. (read more)

GM holds considerable risk exposure within the current state of international trade and economics as it relates to the auto industry.  As a result of the ongoing U.S-China trade confrontation, GM holds risk as a result of heavy investment in China.  Add to that exposure the very significant financial impacts about to start for heavy manufacturing operations inside countries aligned with the Paris Climate Treaty, and the risk increases.
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The Washington Times is reporting on a possible agreement between U.S. and Mexico officials to keep all Central American asylum seekers outside the U.S. during the process to evaluate their asylum claims.
The important backdrop here is the new Mexican President, Andrés Manuel López Obrador (AMLO), taking office on December 1st.  If the reporting is correct, there may be an agreement in the works between President Trump’s administration and AMLO’s team.
Reading between the lines, the mutually beneficial structure of such an agreement is likely based within prior economic (trade) discussions. [CTH sees Jared Kushner’s diplomatic fingerprints at work]  Friends with benefits….

(Via Washington Times) Immigrants seeking asylum in the United States by entering through Mexico could be required to wait south of the border while U.S. courts assess their cases, a member of the incoming Mexican government said in an interview published Saturday.
Andrés Manuel López Obrador, Mexico’s president-elect, plans to implement a policy known as “Remain in Mexico” after taking office next month, his top domestic policy official told The Washington Post.

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Ohio Representative Jim Jordan discusses President Trump’s record with the insufferable Neil “eeyore” Cavuto.
Jim Jordan’s Ohio district is home to one of the largest U.S. manufacturing regions in the country. If there is any representative who understands how MAGAnomics is providing benefits to the heartland middle-class it’s Jim Jordan.

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Well, there it is.  Quietly within the deliberate words from Vice-President Mike Pence a revelation that explains the origination of the Central American invasion force.  For those who are not deep in the geopolitical weeds, the subtlety can pass unnoticed; for those who travel within the deepest international conflicts, Pence’s words here are as subtle as a brick through a window:

[…] “Financed by Venezuela; and sent North to challenge our sovereignty and our border”…

[wpvideo tXWLlFMs]
Announcing the migrant caravan is “financed by Venezuela” is a direct notification the Central American invasion force is being funded by Russia and China.  Venezuela doesn’t have any money to sustain its own operational government – let alone a 10,000 person convoy.  Venezuela is entirely reliant upon massive investment from Russia and China.
In fact China owns 49% of Venezuela’s state run PDVSA energy production. A collateral system where Beijing takes oil as payment for prior loans the Maduro regime cannot pay back.  With the crippling treasury department sanctions President Trump put on Venezuela last year, Trump has punched Maduro and Xi-Jinping hard.
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As expected the government of Mexico put up token resistance at their southern border (video laughable) and allows thousands of economic migrants passage to the U.S. Mexico border.
Rebuking the strongly worded demands of President Trump and Secretary of State Mike Pompeo the insufferable Mexican Foreign Secretary Luis Videgaray tells media his country will now call on the United Nations to intervene.   Yes, it’s up to the U.N. now….

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This is a transparently constructed political operation; with the migrant arrival timed to arrive at the U.S-Mexico border at the same time as the 2018 midterm election.
CTH has followed this for several years and below you will find a comprehensive time-line of the issue along with full historic citations and documents, and all the evidence of the financial motives behind much of the activity.
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Very funny: “President Trump’s policies have re-jiggered the incentive system in the economy.”  …Well, that’s a slightly different wording than CTH has used since 2016, but what Mr. Kudlow is highlighting is how POTUS has uncoupled the U.S. economic engine from Wall Street investment and re-coupled it to Main Street investment. [Go Deep]
Then comes the funniest pundit question ever…. “where is this disconnect coming from?”
Too funny.  Long-term CTH readers likely joining me in laughing at the predictability of it all.   [“Disconnect” January 2016]  or [“Disconnect” July 2017]

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The Fundamentals of MAGAnomics HERE

Understanding the “Disconnect” HERE

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