A top Japanese company said Thursday it had dropped Mexico as a possible location for a new auto parts factory after Donald Trump rapped Toyota over a plant in the country — and economists warned more firms could follow suit.
The decision by Nisshinbo Holdings marked the first time a Japanese company has publicly abandoned a Mexican facility in response to the new US president’s protectionist outbursts, the Nikkei business daily said Thursday.
The announcement comes as Japanese Prime Minister Shinzo Abe heads to Washington today (Thursday) for meetings with Trump aimed at cementing ties and underscoring Japan’s commitment to investing in the US.
Mexico was among the locations being considered for Nisshinbo’s vehicle brake parts plant, reportedly worth up to 10 billion yen ($89 million).
The firm is a leading maker of friction-reducing brake parts with about a 15 percent share of the global market.