one of the main reasons US automaker aren't as competitive is the UAW. they add 5-7 thousand to the cost of a US car.
China doesn't have unions. well the Union of the Communist party that is but their labor is far cheaper.
Correct. it's China that not only puts tariffs on US products but also limits production in such areas as cars to keep their cars as the most available product. if China let Ford and Chevy sell unlimited numbers the demand would hurt their car makers. China won't allow that.
it's not a level playing field with China, not even close and they also require US tech and manufacturing to give them their trade secrets.
they tariff our products, limit imports from the US, restrict production and make us share our manufacturing tech.
what would an actual economist call that?
unfair trade practices
and so is Trump.
Originally Posted by The_Waco_Kid
Well, many parts used in the US assembly and subassembly are using Chinese parts most metal castings happen over there, things like engine blocks, rotors and other relays and things like light housings and plastics. This separatism and trade tarrifs are certainly in order when there are imbalances in trade.
But not for political statements purely. Saber rattling for the rally cries is a ruse at best.
Imagine Donald putting a hundred percent import tax on foreign-made autos, or parts. It would do nothing but drive up the cost of every car sold in America by $5,000 to $10,000 and delay cars by a year or more.
Some thoughts on the import of Chinese parts:
There are hundreds of Chinese companies with office in the US selling components used by car manufacturers, and the trade is worth tens of billions.
See:
https://www.usitc.gov/publications/3...ompliant_0.pdf
If you are wondering what impact a Chinese trade ban would have on the US auto industry, terrible, but only for a short period until alternative suppliers can be found. Unlike the situation in Russia, the US auto industry doesn’t depend on overseas suppliers for electronics and other high tech components. The sorts of things bought from the Chinese could be built anywhere, including the US, albeit at higher cost.