Forum Discussion
wilber1
Feb 21, 2019Explorer
ShinerBock wrote:wilber1 wrote:
So why shouldn't other countries do the same to American manufacturers if they want to sell US built products in their countries?
They do which is why our US companies build factories in these places. You didn't think the US was only country with vehicle tariffs did you? The EU puts a 10% tariff on all of our vehicles while we only impose a 2.5% on their cars. China and many Asian countries has a 25% tariff on all our ICE vehicles yet we only have a 2.5% on their cars.
Yeah, we have a 25% tariff on trucks, but they would never buy them even if they did not have any tariffs in these countries due to their displacement tax and other reasons I stated. So to get around this, our US companies just build factories in these countries if they think their vehicles have a high enough demand.
Although, these new small engines in full size trucks may get around the displacement tax in other countries.
You impose a 25% tariff on the vehicles most important to your market, why shouldn’t they impose a 25% tariff on the vehicles most important to theirs?
The Germans and Japanese build vehicles in the US for the same reason the US builds them in Mexico, much lower labour costs.
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