Let’s check back in 5 to 10 years. I’m pretty sure that Ford and GM will move more aggressively on sending the manufacturing down to Mexico.
UAW Launches Largest Organizing Drive in Modern American History
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Re: UAW Launches Largest Organizing Drive in Modern American History
#12Earlier quoted context omitted.
Who do you think ends up paying for the higher tariffs?
If people don’t buy foreign cars because they are too expensive, then no one. For the union there’s no intrinsic downside to such a protectionist action.
Why would American consumers purchase a car made in Europe without the tariff?
It is never possible that the producers and their labor will benefit more than the aggregate harm imposed on consumers by a tariff.
The cost of a tariff on the economy will always be more expensive than the benefit it gifts to a select few. However, the political reality of the cost spread out to many people compared to the larger per person benefit enjoyed by a smaller number of cronies means that tariffs will almost always be popular.
Re: UAW Launches Largest Organizing Drive in Modern American History
#13Why do American unions never demand higher import tariffs? 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%.
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.
Re: UAW Launches Largest Organizing Drive in Modern American History
#14Let’s check back in 5 to 10 years. I’m pretty sure that Ford and GM will move more aggressively on sending the manufacturing down to Mexico.
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.
Re: UAW Launches Largest Organizing Drive in Modern American History
#15Re: UAW Launches Largest Organizing Drive in Modern American History
#16Why do American unions never demand higher import tariffs? 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%.
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.
Re: UAW Launches Largest Organizing Drive in Modern American History
#17Earlier quoted context omitted.
If people don’t buy foreign cars because they are too expensive, then no one. For the union there’s no intrinsic downside to such a protectionist action.
Why would American consumers purchase a car made in Europe without the tariff? It is never possible that the producers and their labor will benefit more than the aggregate harm imposed on consumers by a tariff. The cost of a tariff on the economy will always be more expensive than the benefit it gifts to a select few. However, the political reality of the cost spread out to many people compared to the larger per pers…
That's only true in a perfect globalized market economy. To head you off, I understand the the downward shift of the demand curve when the price level rises, that makes complete sense. However,
if the net result of not having protectionist trade policy is a loss of on-shore production and at a later date their is global instability, whether from a pandemic virus or war, such that a global market no longer functions freely, then wouldnt the "expense" be an investment? Demand for cars is fairly elastic I would imagine, so wouldn't domestic suppliers increase production?
Looking at vehicle production through the single dimension of economics without considering geopolitics seems naive.