commercial vehicle maker navistar, and for over half of parts in their trucks from the u.s.o mexico. reporter: the face of this factory in mexico hangs on the uncertain future of the free trade deal. one that president donald trump is certain to scrap. over half the parts used by the u.s. commercial vehicle manufacturer navistar here there as roberto plant come from the united states and canada. growing signs that nafta talks me into the stalemate, the access to tariff free imports is looking tenuous. >> 55% supplies come from the united states in canada. this program both sides. to lose this treaty would be to go backwards 40 years. it wouldn't even mean going back to a situation where each country depends on what they produce themselves, it would not be mutually beneficial. reporter: a b breakdown o of the trade deal would stop reduction the costs ofg up engine parts 10% and would make up 45% of the price of a more than $130,000 truck. payingrs would end up $500 to $1000 more than they usually do. the company is hopeful that there will be other free-trade deals to export f

. >> let's talk navistar, those stocks on the rise after better than expected truck sales.t's a modest bump, jimmy. basically flat. >> look, i don't particularly like the multiple here around 22 times forward earnings, but you've got to acknowledge that the ism manufacturing survey and all the fed regional surveys are saying that there is manufacturing growth which is going to go to navistar. the other thing that you've got to consider is navistar is come out of a horrible period a few years back they had an epa problem with their engines and their sales went down 20% and the stock underperformed mightily so it's recovering some of that. i still don't like multiple but apropos of everything that we're talking about on this hour, this stock is probably going higher. >> kansas city southern shares are down josh, you own it. >> yeah. it's been a strong stock look, this is a name that had resistance historically at about 100 bucks, broke above and ripped right to 107.5. it's retested a couple of times. you know, this is a pretty, in my view, low risk-reward trade the stock goes

but navistar state remains closely tied to the future of nafta. most of the components are made in the u.s. and canada. import tariffs between the three countries would make the trucks far more expensive. the plant could instead acquire the parts elsewhere. we shouldn't forget that fifty five percent of our suppliers come from the united states and canada so the growth has been on both sides to lose this treaty would mean going bank forty years it would mean going back to a situation where each country depends on what it produces itself and it would not be mutually beneficial. but i'm with. a range of u.s. companies making everything from trucks to refrigerators and home appliances have production facilities in mexico low wage costs are a key factor in the creation of nafta in one thousand nine hundred four removed import duties on goods traded between mexico the u.s. and canada president trumps threat to scrap the agreement would also impact on consumers in the u.s. . it would trigger price hikes on a range of goods in some cases due to the absor