Saturday, May 12, 2018

Trump Calls for 20% Tariff on Foreign Made Cars

I hope you have bought your foreign made car already or plan to do so very soon.

On Friday, President Donald Trump proposed to executives from the world’s biggest automakers a 20% tariff on vehicles brought into the U.S. and also subjecting imports to tougher emissions standards than domestic vehicles, reports The Wall Street Journal.

More from WSJ:
During a tense meeting at the White House that was billed as a discussion of U.S. auto-emissions standards, Mr. Trump brought up the issue of trade and targeted European auto makers for not building more vehicles in the U.S., according to the people briefed on the meeting. He then proposed a 20% tariff on imported cars, which he also suggested would be subject to Obama-era emissions regulations, the people said...

The administration is considering new emissions standards that could clash with those in California and is in the midst of negotiating a rewrite of North American Free Trade Agreement rules that govern which cars and auto parts can be traded within the bloc without incurring duties...

One person with knowledge of the meeting said the Big Three Detroit auto makers stayed behind at the end of the session after the foreign auto makers left. It was unclear what was discussed.
As I have said many times, Trump has no understanding of basic economics. He has an 18th-century trade mentality.

Wharton should be embarrassed that Trump graduated from the school with a Bachelor of Science in economics.

-Robert Wenzel  

1 comment:

  1. I have consistently opposed all of Trump's inane and ignorant moves toward increasing tariffs, from the tariffs on steel, aluminum, lumber, refrigerators and washing machines, and so on. But seeing how my wife works in management for Ford Motor Company, I think with this tariff I am finally seeing the light. Hooray for tariffs on foreign cars! Hooray for Trump!