FROM THE ARTICLE:
U.S. research agency Center for Automotive Research estimates that 13% to 24% of all cars sold in the U.S. will be subject to tariffs. If automakers pass these costs on, prices will rise by $470 to $2,200.
The center also said U.S. car sales will drop by up to 1.3 million units annually due to the Trump administration’s trade policy — including sanctions on China. It estimates that 70,000 to 360,000 jobs will be lost, leading to a $6 billion to $30.4 billion reduction in gross domestic product.
Tomorrow I’m cycling 20 miles.
Then, I’m going to treat myself to an ice cream cone.
Would you move your operation to the US right now if you were doing well somewhere else and could stay while paying a less than US living wage? I wouldn’t.
Irrationally biased reporting.
No one will *immediately* replace production facilities- of course!
What a huge loss that would be!
Over the near to mid-term though...
I’ll take Mexican built cars over Chicom built cars. Mexicans making triple the old wage won’t have to come here for opportunity.
If factory workers in Mexico are making more, then I think that’s great. A better the Mexican economy is a plus for them and us, too.
The company is also installing robots to mitigate rising labor costs ..... Money shot, right there. Get machines to do the work. Savings in labor more than offset the tariffs.
Wonder how long the Mexican government will allow the factory to stay in Mexico.
Nice. Maybe now we’ll wall climbers jumping into Mexico for a change.
SHUJI NAKAYAMA and RYO ASAYAMA, the authors, are not familiar with American capitalism.
“The pandemic has hurt earnings.” Yeah, well, the pandemic is anemic and earnings are not hurt. Nice try, though, to find an excuse to blame America for something.
President Trump listens to the best experts in the auto, airline, restaurant, hotel, sports and medical industries.
I am going to say this is not without a silver lining.
Jobs in Mexico keep Mexicans in Mexico. Better paying jobs in Mexico will help to raise the people there out of poverty and stem the flow of ILLEGAL immigration into the US. People having good jobs and a future where they live will, hopefully, encourage them to take control of their country back from the corrupt politicians and cartels.
Is that worth $500 more for a Nissan?
This is the intent of USMCA, to increase wages within the trade block. It is good that wages are rising in Mexico. It cuts down on migration, crime, and Mexico has more money to buy American products. A roserous Mexico also helps absorb migration from Central America, which has been a bigger problem than Mexico lately.
The “purchase parity” value of 16 USA Dollars in Mexico is 16 X 2.053.
In other words, having $16 USD in Mexico would be the same as having $32.85 USD in America.
Of course, the Mexican government will confiscate half of that in taxes, and the Mexican gangs will extort the other half.
Japanese are highly intelligent refined people. Smart move. Despite the best efforts of a superb, strong man, the country as a whole seems on a very bad trajectory. And if democrats win a sweep in Nov...it’s over and the experiment failed.
Maybe now Mexicans will get jobs in Mexico rather than sneaking across our border.
Either way, we still benefit. If there are good jobs in Mexico, fewer will come here. If Japan pays tariffs, we’re still getting a benefit.
Assuming that there’s no UAW in Mexico (or equivalent), it will take MUCH MORE than higher wages to drive production out of Mexico and into the US. The Japanese auto companies are not that stupid.
I’m sure much of this was calculated in and a bone to Mexico. There is no reason not to pay Mexican line workers at least $16 an hour. This will be a feather in the cap of the Mexican President politically, again, I’m sure there’s a trade off somewhere else, like perhaps putting 20,000 troops on the border to almost eliminate illegal crossings. Not to mention the workers will help local economies so not as many people will want to leave. None of these outcomes are big surprises, they have been calculated into this.
Can’t blame them. Who would move a company during the corona mess?
I think it’s great that you post so many articles but every now and then have the courage to take a stand on something you post that kind of takes a slam at Trump. I have no problem with that. We should be looking at both sides of an argument but at least have the courage to leave a remark saying so. When I disagree with Trump I say I disagree with Trump.
This better than posting an article and running
Number of Asian Auto Factories in the U.S.
Toyota - 4
Honda - 4
Nissan - 2
Subaru - 1
Mazda - 1 (opens 2021)
Hyundai - 1
Kia - 1
Hino - 1