Ram moving back across the border?

otrfun wrote:

Bedlam wrote:

otrfun wrote:
If that's the case, why are so many American corporations moving operations to other countries? Does it cost the same to make a Ram HD in Mexico as it does in the US?

Cheaper labor, less worker safety, less restrictions on pollution, lower tax rates...

Absolutely true. With this in mind, how does an American corporation compete with another competitor who's willing to take advantage of these disparities to produce the same product more cheaply?

That's where the thought of implementing a tariff on imported goods from Mexico (as example) would help balance the disparities. Yes, those tariffs would be passed on to the consumer, because we all know the companies will not pay for it out of profit. In the end, in theory, that would make a car manufactured in Mexico, and shipped to the US, equal to, or perhaps even more expensive than, a car manufactured in the US. That would encourage companies to return manufacturing jobs to the US.

The erosion of our manufacturing base did not happen overnight, and won't be restored overnight, but I am excited about the new approaches being discussed by the Trump admin, and as Cummins12V98 points out, the American people have spoken and we believe WE are the big picture, at least for now, because for too long, we have been the little picture, and have allowed this erosion to occur. Time to turn this back around is now. As pointed out, by I think Cummins as well, we are talking 'fair' not 'free' trade. Given a choice of adding US jobs, or allowing foreign countries to keep jobs, I will vote for US jobs each and every time.

Mike

otrfun wrote:

Bedlam wrote:
Cheaper labor, less worker safety, less restrictions on pollution, lower tax rates...

Absolutely true. With this in mind, how does an American corporation compete with another competitor who's willing to take advantage of these disparities to produce the same product more cheaply?

Trade tariffs with countries that do not hold the same safety and pollution standards as our own have been used in the past to somewhat equalize pricing. However, adding tariffs to subsidize higher worker pay in the US does not seem like the solution - This will just allow our labor costs to spiral upward due to artificial controls.

Foreign countries that dump cheaper products on our shore due to government subsidies are another target for tariffs. This ploy is typically used to undermine our manufacturer base so they become the sole source. I'm all for competition that brings the best value to consumers, but let's play nice.

WE are the BIG picture. When we require things made in another country and shipped here to be made under the same labor and environmental conditions we require of our companies we will compete with anyone. Why allow the piano that's made in SanDiego to be taken across the border to Mexico just to have the Black Lacquer finish applied then returned here to be sold in the US????

Charlie D. wrote:

blofgren wrote:

John & Angela wrote:
Although every one likes to see jobs come to their country I think the concern is that he is firing off these threats without looking at consequences. Currently five million American jobs are directly attributed to American exports to the very quickly growing Mexican middle class. Starting a tariff war could cost the livelihood of millions of Americans. Countries like Argentina, Brazil and Canada could benefit "bigly" from a trade war between the US and Mexico as that growing middle class is going to buy their products from someone. There are always two sides to a story. I just think negotiation works better in situations like this. Latin America countries are already looking at possible scenarios depending how things go including alternate trade and defense alliances. Sometimes it pays to play nice with neighbours that have options.

Very well said. Looking at the bigger picture.

January thru November 2016 trade deficit with Mexico was 58.8 billion dollars. Nothing yet for December. I agree that negotiations are best but they must be fair to all involved. IMO, that has not always been the case. I believe that all, including us, would suffer from a trade war but Latin America and Mexico are more heavily involved with U.S. trade and would not be able to make up an appreciable amount with others. Remember that other countries with manufacturing in Mexico depend heavily on the American market thus that would also impact them and even more so the Mexican people. Remember as you said. "Best to look at both sides"

Past policy has been to look at both sides. However, based on recent electoral college results, it certainly appears many in this country are wanting to look at a much more one-sided, "smaller picture".

It's going to be very interesting to see how this kind of approach works in conjunction with this extremely co-dependent relationship we've developed with the rest of the world.

Bedlam wrote:

otrfun wrote:
If that's the case, why are so many American corporations moving operations to other countries? Does it cost the same to make a Ram HD in Mexico as it does in the US?

Cheaper labor, less worker safety, less restrictions on pollution, lower tax rates...

Absolutely true. With this in mind, how does an American corporation compete with another competitor who's willing to take advantage of these disparities to produce the same product more cheaply?

blofgren wrote:

John & Angela wrote:
Although every one likes to see jobs come to their country I think the concern is that he is firing off these threats without looking at consequences. Currently five million American jobs are directly attributed to American exports to the very quickly growing Mexican middle class. Starting a tariff war could cost the livelihood of millions of Americans. Countries like Argentina, Brazil and Canada could benefit "bigly" from a trade war between the US and Mexico as that growing middle class is going to buy their products from someone. There are always two sides to a story. I just think negotiation works better in situations like this. Latin America countries are already looking at possible scenarios depending how things go including alternate trade and defense alliances. Sometimes it pays to play nice with neighbours that have options.

Very well said. Looking at the bigger picture.

January thru November 2016 trade deficit with Mexico was 58.8 billion dollars. Nothing yet for December. I agree that negotiations are best but they must be fair to all involved. IMO, that has not always been the case. I believe that all, including us, would suffer from a trade war but Latin America and Mexico are more heavily involved with U.S. trade and would not be able to make up an appreciable amount with others. Remember that other countries with manufacturing in Mexico depend heavily on the American market thus that would also impact them and even more so the Mexican people. Remember as you said. "Best to look at both sides"

otrfun wrote:
If that's the case, why are so many American corporations moving operations to other countries? Does it cost the same to make a Ram HD in Mexico as it does in the US?

Cheaper labor, less worker safety, less restrictions on pollution, lower tax rates...

goducks10 wrote:
. . . I don't see any impact on auto prices whether they're made here or somewhere else. Prices have to be competitive.

If that's the case, why are so many American corporations moving operations to other countries? Does it cost the same to make a Ram HD in Mexico as it does in the US?

Flying this flag in a 55 up RV park in SoCal since October. You would be amazed at the amount of Canadians that have came to me saying "I sure like your flag" or "I am from Canada but I am sure he will help our Country also".

The positive business environment and the positive attitude of the average joe will make North America prosperous again.

Trump talks "fair trade" big difference compared to "free trade".

Keep this civil, it may stay open for a while!

John & Angela wrote:

Walaby wrote:

Charlie D. wrote:
A number of Mexican officials are lamenting that new jobs will not be forthcoming and lay offs are expected.

I am not saying threats of heavy import taxes has anything to do with it.

Oh no! Layoffs for Mexican workers? I for one, am glad to see it. Doesnt matter to me if this was in the planning stages before Trump or not. Bottom line, more jobs for Americans, and right now, that's all that matters.

I don't care if Trump takes credit for it or not. Not like Obama hasn't taken credit for things he had no influence on, but 'happened' during his watch.

I personally think his positions that he has taken has influenced businesses to rethink what they are doing. And I like the idea of using every tool in your arsenal, to include threats of higher tariffs in order to influence businesses to move back.

Mike

Although every one likes to see jobs come to their country I think the concern is that he is firing off these threats without looking at consequences. Currently five million American jobs are directly attributed to American exports to the very quickly growing Mexican middle class. Starting a tariff war could cost the livelihood of millions of Americans. Countries like Argentina, Brazil and Canada could benefit "bigly" from a trade war between the US and Mexico as that growing middle class is going to buy their products from someone. There are always two sides to a story. I just think negotiation works better in situations like this. Latin America countries are already looking at possible scenarios depending how things go including alternate trade and defense alliances. Sometimes it pays to play nice with neighbours that have options.

How is your economy doing?