The migration of manufacturing to Mexico could undermine Trump’s promise to voters that ratcheting up tariffs on China would incentivize companies to bring production back to the U.S and give American companies a more even playing field.

China has strengthened trade with Latin America at the expense of the U.S. But Donald Trump, who threatens to raise tariffs on Mexico, could upend those ties.

WASHINGTON/DETROIT (Reuters) -Michigan Governor Gretchen Whitmer warned on Wednesday that potential 25% tariffs on imports from Mexico and Canada suggested by President-elect Donald Trump could harm the U.S. auto sector, increase vehicle prices and benefit China.