FCA Proposes a Merger with Renault

ShinerBock wrote:

wilber1 wrote:

ShinerBock wrote:
How did the chicken tax prevent outside competition when US truck manufacturers had competition from several foreign manufacturers since it's inception?

You don’t think a 25% tax would discourage competition? What do you think would happen to domestic truck prices if a 25% tax was applied to every truck when it left the factory?

It may discourage those who want to flood the market with cheap trucks like China does with everything else, but not from any serious competitors. If a manufacture thinks their product has the potential to sell and make a profit, then they can build a factory here to make it just like our domestic manufacturers had to do or pay the added tax.

The reason why most global truck manufacturers don't is because most US truck buyers don't want the product they are selling. Most want full size trucks with more capability and the 6k GVWR cap on Class 1 mid size trucks keeps their capabilities low.

If domestic trucks went up 25% then of course the cost would go up, and instead of most people buying the higher trim levels like they do now, they would probably buy the mid-level trims more. Of course this would be short lived once the market adjusts.

Again, I am not sure why either of you are so interested in speaking about what the US should do with its tariffs when neither of you live here and we are currently sitting at a $600B trade deficit with other countries meaning we import $600B dollars more product than we export. If you don't like it, then either move here to vote the way you want it to be or go pound sand.

I don't see either of you crying about the 10-25% tariffs other countries have on our imports even though we buy more from them than they buy from us. Or even the fact that China doesn't allow any foreign country to own more than 50% of a company or property in China(while we allow full ownership of both property and capital), and any foreign company must partner with a domestic company which will inevitably reverse engineer their product to sell for less.

I’m not crying about anything. All I am saying is that a 25% tariff allows domestically manufactured vehicles to be sold at a premium. It isn’t rocket science.