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Not anymore. The Republicans have abandoned free trade and are calling capitalism evil.
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NAFTA began in the Reagan Admin. Bush 1 did the signing ceremony, subject to Congress. Most Republicans voted for it. Clinton used his political capital to persuade just enough Democrats to support it.
Car parts imported from foreign countries would pay the usual tariff at the border when they enter the country I assume unless Trump is planning to raise the tariff on foreign auto parts as well.
If Trump puts a tariff on foreign cars, other countries would retaliate of course. What U.S. exports they would target is unknown at this point.
Heck, so called US manufacturers are readying to break out the bubbly at the prospect of increasing their prices by 25% to match imports.
Heck, so called US manufacturers are readying to break out the bubbly at the prospect of increasing their prices by 25% to match imports.
The problem with imposing tariffs on German and European cars, is that the US is a major importer of cars in to Europe.
EU Car exports to the US aacount for 16% of exports, whilst the US exports 22% of it's car prduction to the EU.
So a 25% tariff would severally effect the US Auto sector.
On top of this you have the problem of auto parts and the fact that some US Car makers produce abroad and import back in to the US.
On top of this you have the fact that GM in Europe is now French owned, Chrysler is now part ownd by Fiat with it's HQ in London and that companies such as Ford like most big car companies are mult-national.
It also might be in China's interest to use the opportunity of a trade war between the US and most of the world to move in to areas such as automobile production and aircraft, should the tariff war esculate to the aircraft production and other such industries.
Last edited by Brave New World; 06-16-2018 at 06:34 AM..
Trump thinks implementing a 25% tariff on foreign cars before November will help Republicans keep the House and the Senate.
"Raising the price of foreign cars would be the latest in a series of aggressive trade moves by Trump, who is betting that his supporters will be more focused on the protection of local jobs than on the increased costs for consumers, or the potential loss of jobs in U.S. factories that make parts for foreign cars."
"But before he can impose the penalties under U.S. law, Trump must first get the Commerce Department to declare vehicles like Toyotas and Audis a security threat."
It's not that easy. Some American car companies manufacture some cars outside the USA and some non-American car companies manufacture cars on US soil.
In addition, cars that are manufactured within the USA will likely get price increases too. This is to keep up with market conditions. Maybe they'll increase by 15% so they stay below the others. Such price increases already occurred in the steel industry. In those cases, steel prices increased for steel made in the USA, even though there weren't any tariffs on that steel. They increased prices because the overall market price went up due to the tariffs causing price increases on the steel made outside the USA.
It's expected that across the board price increases will occur in other areas as well, even for products made on US soil. In the end, consumers will be paying a lot more for a lot of stuff regardless if it was made in the US or not.
"Buy american" Except you really can't and regardless why should one person be determing the choices for everyone else.
How have people been deciding what car to purchase without the help of a president? And ifthe last guy in office was dictating the choices, these same anti tax, small govt republicans heads would have exploded, but suddenly now they are fine with it. The power of brain washing on display.
Trade ignoramus Trump is waging a war on american consumers and his victims are actually applauding him for it. You cant make this stuff up
It's not that easy. Some American car companies manufacture some cars outside the USA and some non-American car companies manufacture cars on US soil.
In addition, cars that are manufactured within the USA will likely get price increases too. This is to keep up with market conditions. Maybe they'll increase by 15% so they stay below the others. Such price increases already occurred in the steel industry. In those cases, steel prices increased for steel made in the USA, even though there weren't any tariffs on that steel. They increased prices because the overall market price went up due to the tariffs causing price increases on the steel made outside the USA.
It's expected that across the board price increases will occur in other areas as well, even for products made on US soil. In the end, consumers will be paying a lot more for a lot of stuff regardless if it was made in the US or not.
BMW exports more cars from America than it imports , but shhh dont tell the anti free trade dunces
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