Posted on 02/28/2017 9:41:52 AM PST by EveningStar
Shopping for a new set of wheels at a Chevy dealership recently, Patrick Spradlin had a few priorities: a good commuter car, room for his family of five, low maintenance costs and no more than $20,000.
About the last thing on his mind was where such a vehicle and each of its components — whether engine, car seats or spark plugs — were made. “That’s not a make-or-break issue,” said the 38-year-old systems engineer from Whaleyville, Md.
But such details about the origin of car parts and hundreds of other products may soon take on greater importance under the Trump administration, potentially translating into significant costs for consumers like Spradlin.
The issue, known in trade jargon as rules of origin, figures to be a major bone of contention as President Trump undertakes his promise to radically overhaul the North American Free Trade Agreement.
The 23-year-old pact is mind-numbingly complicated in its details. But what it boils down to is a system that allows the U.S., Canada and Mexico to trade hundreds of billions of dollars of goods with each other without having to pay duties.
On motor vehicles, there is a provision allowing duty-free imports and exports so long as at least 62.5% of the value of a vehicle originates in one or more of the three nations. Trump’s trade team is looking to raise that percentage significantly, on the theory that it will boost domestic production and jobs by preventing manufacturers from bringing in more components from Asia and other countries outside North America.
(Excerpt) Read more at latimes.com ...
Whatever small increases may be reflected back to consumers will be more than offset by the corresponding decrease in entitlements and other financial penalties we are incurring as a result of a crippled government-centered economy and bloated federal bureaucracy.
The optimal word here is “could”.”
It’s a GOOD THING for Americans to pay 35% more for a Barbie doll so that Mattel can buy a $14 million robot to paint every Barbie’s eyes. Didn’t you get the memo???
I’m sure the end of slavery with the American Civil War hiked the consumer price for cotton. So what?
We’re supposed to believe this drivel from the illegal loving LA Times?
LOL!
Yeah, and an asteroid could impact the Earth, too!
Bunch of LA Time dumbshits!
Oh this is rich. The LAT singing the praises of a free market in trade. They loved Occupy Wall Street and Black Lives Matter so much, perhaps they should send a reporter to interview some of the OWS or BLM activists to see what they say about the virtues of free trade. Or their union buddies.
On the other hand, relaxation of gizmo requirements (Trump has postponed requiring cars to transmit their speed to other cars on the road for next year, for instance) and CAFE standards will lower the cost of the cars.
Along with huge increase in jobs
I’ve always heard that hiring legal workers would raise the cost of fruits and veggies a few cents.
Sounds like a fair deal.
Next up .... American made journalists, newsrooms, newsprint, etc.
The purpose of a tariff is to make domestic suppliers more competitive with third world produced goods. If prices increase that is a good thing. It’s the whole point of the tariff, that and revenue generation. If prices didn’t go up there would be shortages as the tariff increases demand for domestic sourced goods. But that increased demand is what begets increased US production and more jobs jobs jobs and less welfare. It isn’t rocket science people.
Globalist Mark Levin doesn’t care where products are made.
The big question should be how much are we losing to NAFTA?
You can't expect an individual to sacrifice his own funds to buy American. This needs to be driven by government policy. Our founding fathers had it right when they put import tariffs in place. It worked well for 180 years. We were stupid to remove them.
Once new supply chains are established in the US, and the number of miles shipped is drastically reduced, there should be a substantial reduction in transportation costs.
If you buy a car with a VIN starting with the number ‘3’ it was built in Mexico. It is not hard to check. If the salesmen brings one out for you then send it back and go home. Walk away.
I heard him yell that in a manic rage on the radio one evening from his padded bunker.
More things manufactured in US = more jobs in US = more $ staying in US = stronger US economy.
Robots will level the playing field further, but it will be a whole new world. Will 70% unemployment rate be future? What then?
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