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It's not a ban on German cars. It's not even a "so-called" ban on German cars. It's not even unique to Germany. It's a tariff designed to create fair trade. We have existing trade deals with countries like Germany that are based on reciprocity. We sell cars there and pay a certain % as an import tariff. They sell cars here and pay the same % as an import tariff. Perhaps those %'s are tweaked a bit depending on volume of imports.
What's happened is that Germany and others have collected the import tariffs when we send cars to Germany & screwed us by not paying the import tariffs that they agreed to when they import cars here. Instead, they build plants in Mexico, build them using $4 an hour labor, with no benefits & then ship them into the U.S. using NAFTA to avoid paying the import tariffs they agreed to pay.
It's sad to watch the left defend multinational corporations profits over the American economy, middle class & unions.
When did Germany EVER agree to pay tariffs on cars made in Mexico and exported to the U.S.? NAFTA or no NAFTA, Germany gains no financial benefit and no jobs when cars are produced outside of Germany.
Let me put it another way - When did the U.S. EVER agree to pay tariffs to Germany on ANYTHING manufactured in a foreign country (e.g. Japan, Canada) by American-owned companies and shipped to Germany? The idea is nutty.
Sadly there are no winners in terms of trade wars and whilst it's easy to start one is far more difficult to put an end to one, and they can last a long time.
I feel sorry for all those affected and not just in my country and Europe, but also the American workers, consumers and indeed farmers who are going to ultimately pay the price.
When did Germany EVER agree to pay tariffs on cars made in Mexico and exported to the U.S.? NAFTA or no NAFTA, Germany gains no financial benefit and no jobs when cars are produced outside of Germany.
Let me put it another way - When did the U.S. EVER agree to pay tariffs to Germany on ANYTHING manufactured in a foreign country (e.g. Japan, Canada) by American-owned companies and shipped to Germany? The idea is nutty.
The U.S. has a trade agreement with the EU. The U.S. car maker pays a 10% import tariff to sell an American car in Germany. Germany, as part of the EU, agreed to pay a 2.5% import tariff when their companies import a car to the U.S.
In order to avoid paying the U.S. the agreed upon 2.5%, German auto makers like Mercedes Benz, build a plant in Mexico & ship their cars into the U.S. import tariff-free using the loophole in NAFTA. Mercedes avoids the 2.5% import tariff and only has to pay their Mexican workers $4.00 an hour (the average wage for a Mexican auto worker).
Who wins? The corporations. Canada. Mexico. Germany. Who loses? The U.S. Why would any American be ok with this deal?
well, I will always be a German and Japanese car buyer. But for pick up truck, it will always be American.
I don't understand why Trump wants to do it, but oh well, whatever. I will NEVER buy a Chinese brand. Other stuff, okay, cars, no.
All Trump wants is for foreign corporations (not just German) to pay their agreed upon tariffs or manufacture their cars here in the U.S. What he doesn't want is foreign corporations to invest in Mexico & avoid paying the import tariffs that they agreed to, at the expense of the U.S.
Who wins? The corporations. Canada. Mexico. Germany. Who loses? The U.S. Why would any American be ok with this deal?
Simplistic....
1. The American consumer wins - they buy a car for a better price.
2. The American dealer wins- do you have ANY idea how big the Auto Dealer Biz is in the USA>
3. The states win, because tax on autos (sales and otherwise) is big time money.
4. Most cars are sold at least 2 or three times - every resale is fully taxed to the value of the car - again, more revenue. Many states even have personal property taxes (yearly) on cars.
LOT of Money. To say nothing for parts (Autozone, etc.) , repairs, mechanics (local businesses as well as larger outfits) and much more.
Your question...doesn't make much sense because, give the automation of auto plants, vast numbers of "Americans" as well as any auto workers have been replaced by robots. Do you think Americans shouldn't want Robots to "take American jobs?"....
One has to look much further than the original assembly of a car. Many of the small parts for those cars are US made - let alone the economic activity and taxes and jobs mentioned above.
Furthermore, gainfully employed Mexicans (for whatever wages are normal there) mean more families in Mexico staying there and being able to live where their communities are.
I see absolutely nothing wrong here. What I do want is for international environmental standards and other standards to be applied - but if I am not wrong, I think most of them are. A make like MB does not use ancient and polluting practices whether here or in Mexico.
Assembly line work isn't the ideal work - btw - except for a very small percentage of our current population. I doubt people are lining up to work on the mold lines in iron foundries either.
All Trump wants is for foreign corporations (not just German) to pay their agreed upon tariffs or manufacture their cars here in the U.S. What he doesn't want is foreign corporations to invest in Mexico & avoid paying the import tariffs that they agreed to, at the expense of the U.S.
He doesn't know what he wants - he wants to be the center of attention and never can "game out" any issue past that. He plays a weak game of checkers as opposed to chess. With more and more of the world industrializing it is unlikely that this 5% of the world population is going to be able to control the globe. That's why we make treaties that are beneficial to everyone involved.
Fact is - 99.99% of all of us commenting on this know nothing. It's quite complicated and this world trade has been building up for 500 years or so. Nationalism has never ended well.
Sure, there are certain small adjustments that are made as you go - but Trump has become so chaotic and unpredictable (the worst thing for business!) that no one know what to do. Maybe they will start planning a plant here (3 years at least to build and equip - much more to fully expand)...and he'll change his mind or be impeached.
Our systems is supposed to move slowly - that's how it is designed. That's why we don't usually have a dictator - but instead of doing this stuff in the normal fashion, Trump is using "national security" as an excuse to build up his own power to levels never seen (except in real wartime for temp. periods).....
And, guess what? Anything Trump does today, ANY President in the future can do that or more. So keep that in mind - you lose the right to claim that any POTUS in the future can't have a harem, make decisions by the minutes and use "national security" as the reason for doing anything and everything without involving the will of the people (Congress, etc.).
Knowing what I know, Trumpies will change their minds about all this stuff instantly when someone else occupies the Oval Office. But any decent person knows that would be unfair...so you will be in a tough position. If you believe in dictators...then you somewhat have to believe in any which passes muster with the Electoral College. Dangerous, IMHO.
Believe me, if they can make the world's best drones, airliners, space vehicles and billions in auto parts (already used in many of our cars), they will build a good car.
Heck, Korea - a tiny blip on the map - builds nice cars.
I would have no problem with a Chinese Car....at the same time I see no reason I would buy one since VW and all the others have plenty here to choose from. They'd also need to up their service game in the USA...
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