Tariffs: Saving American Jobs Since...Wait, What?

[filbert]

The tariffs did more than just protect Harley they protected automobile manufacturers. When you talk about the 80s there were no foriegn automobile manufacturers in the US that under cut and put American automobile company’s out of business. All of that foreign junk was imported and heavily tariffed so that it didn’t undercut American jobs by cheep Asian slave labor. I remember the large car shipping ships. Was a big deal back in the day. Why would anybody want to let in cheep care to put Americans out of jobs? At least that’s how it was viewed by some back in the day

Then to get around tariffs, I’m not sure who but these foreign entities started building their corporations in the US to get around the tariffs kind of like how some of these US manufacturers are going about now. Many of these same country’s but not all do not allow American corporations to own and run businesses in their territory’s. So it has never been a level playing field

In the 80's Amercian car makers were the ones making junk, I owned a 1980 Honda Civics 3 door that I put 250,000 miles on and sold it for $450 dollars still running great. NO American car could do that, thank god the Japanese started making good cars or we would still be with GMC junk and fat unions. And even after the tariffs, the Amercian car makers went broke and we tax payers had to bale them out. I buy the best where ever it is made. Oh, my Dad bought a Chevy Citation, I believe a 1982, he said it was the worst car he ever owned, and they were made right here in OKC. Good bye GM!

 

[Dave70968]

 

[Hobbes]

GM sideswiped by trade war; cuts outlook as prices rise
Updated: Jul 25, 2018 - 7:45 AM

NEW YORK (AP) - General Motors, facing rising commodity costs in a trade showdown with Europe and elsewhere, cut its outlook for the year.

The diminished expectations overshadowed a strong second quarter and shares tumbled more than 5 percent before the opening bell. Other U.S. automakers were dragged down in early trading. Ford Motor Co. posts earnings after the bell Wednesday.
...
GM now expects 2018 per-share profits of $5.14, down from $6. It cited "recent and significant increases in commodity costs" along with unfavorable currency exchange rates. Wall Street had been projecting 2018 per-share earnings of $6.42.

President Donald Trump imposed steep tariffs on steel and aluminum coming out of Canada, Mexico and the European Union. The 25 percent tariff on steel and 10 percent tariff on aluminum, which took effect in June, have driven up costs sharply as domestic producer raise prices.

Shares of Ford slid about 3 percent. Tesla Inc. slide almost 3 percent. Auto parts companies slid as well.

 

[Dave70968]

Apparently, we have to destroy the industry to save the industry.

 

[donner]

Apparently, we have to destroy the industry to save the industry.

I wonder if we will step in and help the automakers. You know, some sort of stimulus or ‘bailout’ if you will...

 

[MacFromOK]

Lol, sometimes ya have to gnaw a leg off to get out of a trap...

As someone posted earlier... why are tariffs bad for the USA if they're good for other countries?

 

[Hobbes]

Lol, sometimes ya have to gnaw a leg off to get out of a trap...

As someone posted earlier... why are tariffs bad for the USA if they're good for other countries?

False premise

Tariffs are taxes paid by consumers.
When did more taxes ever help any country?

No country is helped by tariffs.
Some economic sectors of a country can benefit from a tariff but that benefit comes at the expense of other economic sectors in the same country.

It's picking winners and losers, also known as crony capitalism.

 

[donner]

Lol, sometimes ya have to gnaw a leg off to get out of a trap...

As someone posted earlier... why are tariffs bad for the USA if they're good for other countries?

certainly easy to say if it's not your leg...

and it's not necessarily that they are 'bad' for the USA. But they can be used as either economic tools or (in this case) political tools and it's that differentiation that can matter in how they function. Targeting a specific area for a specific purpose is different than putting a wide range of tariffs in place in order to affect change larger trade imbalances. I'm not saying it wont work, but just that they can be used more like a scalpel than a saw. And as others have said, affecting change in one area does not mean there wont be a small, equal or bigger loss in other areas.

Are tariffs good for economic policy? (quotes pulled, there are more in the article. I've included both a yes and no to be fair)

Alan Gin, University of San Diego

YES: Tariffs can protect some industries and the jobs associate with those industries. The industrial base of this country has been seriously impacted by the offshoring of production and jobs that resulted from free trade. That has devastated the communities where the former production facilities were located and affected the social fabric of this country. Yes, tariffs might invite retaliation against U.S. exporters, might raise prices, and might be too late to reverse the damage, but I think it is worth a try.

Gina Champion-Cain, American National Investments

NO: Tariff policy designed politically as opposed to economically can trigger substantial negative consequences by inviting retaliation. Painstaking negotiation is required to prevent dumping without triggering a trade war. Steel and aluminum are commodities with deep roots in our manufacturing supply chain, the auto industry making up a large portion of demand. The proposed tariffs will increase U.S. consumer costs and make our manufactured goods less competitive. These tariffs suggest expedience over prudence.

 

[MacFromOK]

No country is helped by tariffs.

certainly easy to say if it's not your leg...
...
I'm not saying it wont work, but just that they can be used more like a scalpel than a saw. And as others have said, affecting change in one area does not mean there wont be a small, equal or bigger loss in other areas.

I'm for no tariffs at all, but when they have 'em what are we supposed to do? Just suck it up and pay?

Convince the other countries.

 

[donner]

I'm for no tariffs at all, but when they have 'em what are we supposed to do? Just suck it up and pay?

Convince the other countries.

you mean with things like 'free trade agreements'? Perhaps with regional partners?

and keep in mind that 'paying' in one area might mean 'saving' in another. Really just depends on your relationship to the product in question, i guess.