Mexico will be a big winner in the next decade. There's political will to reverse offshoring, but that's expensive, so Mexico is attractive because it doesn't have the China drama and USMCA makes trade cheap.
In the 1980’s they demanded and got import quotas on Japanese automobiles which were outcompeting Detroit.
Supply constraints allowed US automakers to better compete on price without improving their product design, quality, or cost structure, so much of the same effect as a tariff.
Because there are already numerous trade barriers in place. The Chicken tax prevents normal size pickups from being imported. The Smart car was discontinued in the United States due to the need to modify to meed US standards that are differnt.
Those European cars were made by workers with similar protections to American workers (though this will vary across Europe and across the US), so there isn't a labor rights angle here; it's just economic protectionism. Chinese manufacturing is different.
vondur|2 years ago
dehrmann|2 years ago
0xDEF|2 years ago
Currently, the US only imposes a tariff of 2.5% on European passenger cars and car parts, while the EU taxes American cars with 10%.
twoodfin|2 years ago
Supply constraints allowed US automakers to better compete on price without improving their product design, quality, or cost structure, so much of the same effect as a tariff.
mike50|2 years ago
unknown|2 years ago
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kwelstr|2 years ago
dehrmann|2 years ago
speed_spread|2 years ago
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oldpersonintx|2 years ago
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