International News
See other International News Articles
Title: Study: Trump's Proposed Automobile Tariffs Will Destroy 195,000 American Jobs
Source:
Reason
URL Source: https://reason.com/blog/2018/06/01/automobile-tariffs-will-kill-jobs
Published: Jun 1, 2018
Author: Eric Boehm
Post Date: 2018-06-02 11:40:13 by Deckard
Keywords: None
Views: 948
Comments: 5
A new study says the American automobile industry will lose 195,000 jobs over the next three years if President Donald Trump presses forward with a plan to impose 25 percent tariffs on imported cars and auto parts. That's on top of the existing tariffs on steel and aluminum, which are already forecast to whack automakers and other manufacturing jobs. According to the study, which was released by the D.C.-based Peterson Institute for International Economics (PIIE), a 25 percent tariff on automobiles and auto parts would cause production in those industries to fall by about 1.5 percent and would force the industry to shed around 1.9 percent of its American workforce. The resulting slowdown would affect more than $200 billion in U.S. exports, PIIE projects. Last week, Trump ordered Commerce Secretary Wilbur Ross to investigate whether the U.S. should slap new tariffs on imported vehicles and auto parts under Section 232 of the Trade Expansion Act of 1962, which allows the president to impose tariffs unilaterally for "national security" reasons. It's the same process the White House used to craft the tariffs on steel and aluminum imports that Trump announced in early March. It's absurd, of course, to argue that imported cars are a threat to national security. The auto tariffs "would deal a staggering blow to the very industry it purports to protect and would threaten to ignite a global trade war," Thomas J. Donohue, president of the U.S. Chamber of Commerce, said in a statement. The American automobile industry employs 50 percent more people than it did in 2011, Donohue noted, and domestic production has doubled in the last decade. According to PIIE, the United States imported $183.8 billion of passenger cars, SUVs, and minivans in 2017, mostly from the European Union ($46.6 billion), Canada ($43.3 billion), and Japan ($43 billion). The U.S. currently imposes a 2.5 percent tariff on cars and a 25 percent tariff on trucks—a hangover from a 1960s trade war with France and Germany. If other countries respond to American tariffs on automobiles and auto parts with similar tariffs, PIIE projects, the consequences could be even more disasterous. In that scenario, American production would fall 4 percent and 624,000 American jobs would be lost. "Both scenarios demonstrate how reliant the domestic industries are on imported parts, or intermediate inputs, that are not produced in the United States or that have no easy US-made substitute," PIIE's analysts write. "Consumers could expect to see prices rise for both imported and domestically produced vehicles." And if other countries respond with similar tariffs, the U.S. could lose more than 600,000 manufacturing jobs.
Post Comment Private Reply Ignore Thread
Top • Page Up • Full Thread • Page Down • Bottom/Latest
#1. To: Deckard (#0)
See this is the kinda crap that irritates me. Its bs to begin with. If America is the only one with free trade America will collapse because all the jobs with head over seas. Then again you guys may be happy with this. Well until people from over seas turns all their new found wealth into a military machine and then enslave what is left of America!!!! If the other side is cheating then you have to fight back! If someone is punching your in the face are you really going to just take and tell them forever to not do that? Hell no you fight back! You guys are like 2 year olds and you might even give 2 year old's a bad name!!
No it won't, because it's a negotiating tactic, not a real tariff.
I think its funny how Trump beats up all the Regressives and NeverTrumpers. He just turns them in to crazed nutballs flinging shit everywhere. How they keep claiming he can't do this or if he does this the economy will implode or will start a war to find out Trump doesn't start a war and the economy does not implode but actually explodes like never before. He does all this while the fighting just about all the deepstate/neverTrumpers/Regressives! Duct tape sales must be hitting new highs. All those Trump haters having to tape their head to keep it from exploding!!!! LMAO
Exactly!!!!
Trump's opening gambit is never his final position. What starts out as a tariff is in reality an invitation to come to the negotiating table. If his opening stance seems drastic, that is by design because its severity insures that your opponent will be motivated to seek relief. He clearly is a student of Sun Tzu and believes in always leaving his opponent an honorable route of retreat. So the ideal outcome of the negotiations also must include leaving to the opponent some small victory they can show to the folks back home to support their claim that they didn't get raped by Trump. The net result of engineering a "Win-Win" business deal is the cultivation of a trading partner who is eager to deal with him again.
#2. To: Deckard (#0)
Watch the trading partners cave in and get in line for real free trade across borders.
#3. To: All (#1)
#4. To: Hank Rearden (#2)
No it won't, because it's a negotiating tactic, not a real tariff. Watch the trading partners cave in and get in line for real free trade across borders.
#5. To: Deckard (#0)
Top • Page Up • Full Thread • Page Down • Bottom/Latest
[Home] [Headlines] [Latest Articles] [Latest Comments] [Post] [Mail] [Sign-in] [Setup] [Help] [Register]