Eric Miller Posted November 15, 2016 Share Posted November 15, 2016 (edited) Ford has come out in the open, criticizing Trump's plans to introduce 35% tariff on cars imported from Mexico. Ford CEO Mark Fields said a 35% tariff on cars and trucks imported from Mexico would hurt the entire U.S. economy. Edited November 15, 2016 by Eric Miller Quote Link to comment Share on other sites More sharing options...
CurtisH Posted November 15, 2016 Share Posted November 15, 2016 Someone help me out here. With NAFTA in place, Trump can't really apply a 35% tariff. So, why would Fields even bring this up? Quote Link to comment Share on other sites More sharing options...
jpd80 Posted November 15, 2016 Share Posted November 15, 2016 If I were Trump, I'd look at an engine capacity tax, that might be permissible even under the current NAFTA agreement. Small cars and Utes with engines less than 2.0 liters could be made exempt and anything above progressivly taxed up to that 35% limit. Guess who that would hurt the most? GM.... Quote Link to comment Share on other sites More sharing options...
bzcat Posted November 16, 2016 Share Posted November 16, 2016 (edited) Someone help me out here. With NAFTA in place, Trump can't really apply a 35% tariff. So, why would Fields even bring this up? NAFTA allows for quick withdraw. All you need is a 6 months notice from the executive branch. There is no Brexit style negotiation required. No congressional votes required either so Trump can really pull us out of NAFTA and slap a 35% tariff on vehicles made in Mexico if he wants. Article 2205: Withdrawal A Party may withdraw from this Agreement six months after it provides written notice of withdrawal to the other Parties. If a Party withdraws, the Agreement shall remain in force for the remaining Parties. Edited November 16, 2016 by bzcat Quote Link to comment Share on other sites More sharing options...
jpd80 Posted November 16, 2016 Share Posted November 16, 2016 (edited) Interesting that Mexico is now willing to come to the table and discuss re-negotiation of NAFTA with the US and Canada. I think we're going to see a reorganization of what products get built where, the low cost base of Mexico should be used to build lower priced vehicles that are cost sensitive but larger cars, utilities and trucks should be built in either USA or Canada. Edited November 16, 2016 by jpd80 1 Quote Link to comment Share on other sites More sharing options...
tbone Posted November 16, 2016 Share Posted November 16, 2016 If I were Trump, I'd look at an engine capacity tax, that might be permissible even under the current NAFTA agreement. Small cars and Utes with engines less than 2.0 liters could be made exempt and anything above progressivly taxed up to that 35% limit. Guess who that would hurt the most? GM.... This is an interesting concept. It would help protect higher margin products from being moved to cheaper labor markets for maximum profit taking. However, I suspect this suggested tariff is a bargaining chip for something else he has in mind. 1 Quote Link to comment Share on other sites More sharing options...
blksn8k2 Posted November 16, 2016 Share Posted November 16, 2016 This is an interesting concept. It would help protect higher margin products from being moved to cheaper labor markets for maximum profit taking. However, I suspect this suggested tariff is a bargaining chip for something else he has in mind. Like renegotiating NAFTA? Like a lot of other companies, the one I recently retired from has shut down most of its manufacturing capacity in the US and shifted it to Mexico. That came only after attempting to do the same in both China and India. Those locations could never seem to address their quality control issues. I do not believe it was something they couldn't correct, they simply never saw the need as it was not an issue in their home markets. Although it took a few years, at least in our situation, labor in Mexico seems to have gotten beyond that. One other factor was that the plants in those other countries were joint ventures with either local or government owned companies. The plant in Mexico is owned by the US company. Huge difference. Quote Link to comment Share on other sites More sharing options...
ANTAUS Posted November 16, 2016 Share Posted November 16, 2016 The deep rooting issue is, "Why is manufacturing a vehicle here in the U.S., so expensive and not cost effective" and work yourself up from that, rather than just put a band aid, on the issue. If we resolve THAT issue, then maybe we can address the root cause of the issue. For example, locally here in FL, we will get all these cities "OH how can we attract corporations into the area"...well lets think... We do not have personal income taxes, and the burden is placed on property taxes, and user fees, to exist. The few we do attract is only by luring them with tax incentives... Hm No... you will NOT get major corporations opening their HQ here. Specially car manufacturer's, which will open factories in AL, MS, because of cheap property taxes and non-union states as well. They will be much more profitable there. You do what you can, to be able to survive and exist. Quote Link to comment Share on other sites More sharing options...
fuzzymoomoo Posted November 16, 2016 Share Posted November 16, 2016 I've never shared this opinion here before. I believe that Trump is just an average businessman. The only reason he has the success he does is because he's great at taking advantage of the system and making it work for him, some dumb luck, and the unwavering willingness to literally put his name on anything. Care for a Trump Steak and a bottle of Trump water? 2 Quote Link to comment Share on other sites More sharing options...
RichardJensen Posted November 16, 2016 Share Posted November 16, 2016 NAFTA allows for quick withdraw. All you need is a 6 months notice from the executive branch. There is no Brexit style negotiation required. No congressional votes required either so Trump can really pull us out of NAFTA and slap a 35% tariff on vehicles made in Mexico if he wants. I don't believe he can impose a 35% tariff on vehicles w/o Congressional consent. I can't see how he could invoke GATT, given that the current regime is free trade. 1 Quote Link to comment Share on other sites More sharing options...
jpd80 Posted November 16, 2016 Share Posted November 16, 2016 The only reason he has the success he does is because he's great at taking advantage of the system and making it work for him, some dumb luck, and the unwavering willingness to literally put his name on anything. Billionaire 101 Quote Link to comment Share on other sites More sharing options...
twintornados Posted November 16, 2016 Share Posted November 16, 2016 Interesting that Mexico is now willing to come to the table and discuss re-negotiation of NAFTA with the US and Canada. I think we're going to see a reorganization of what products get built where, the low cost base of Mexico should be used to build lower priced vehicles that are cost sensitive but larger cars, utilities and trucks should be built in either USA or Canada. . Isn't Ford already doing exactly that? Quote Link to comment Share on other sites More sharing options...
fuzzymoomoo Posted November 16, 2016 Share Posted November 16, 2016 Billionaire 101 exactly. He's not a great businessman Quote Link to comment Share on other sites More sharing options...
jpd80 Posted November 16, 2016 Share Posted November 16, 2016 (edited) exactly. He's not a great businessman No, he's president elect with so much money that he can blow off a $400K /year salary.. Successful people make a lot of their own luck, the rest of us have to work until we're nearly dead. Edited November 16, 2016 by jpd80 Quote Link to comment Share on other sites More sharing options...
jpd80 Posted November 16, 2016 Share Posted November 16, 2016 . Isn't Ford already doing exactly that? That's my point, Ford has and is doing those very things. The spotlight should fall on manufacturers who continue to build trucks and SUVs there when those products could and should be built in the US. Quote Link to comment Share on other sites More sharing options...
akirby Posted November 16, 2016 Share Posted November 16, 2016 Billionaire 101 How do you become a billionaire? First, get a billion dollars......... 2 Quote Link to comment Share on other sites More sharing options...
BORG Posted November 16, 2016 Share Posted November 16, 2016 Trump put a gigantic target on Ford's back during the election and to fulfill his campaign promises he has to shoot at them. The rest is up to Congress Quote Link to comment Share on other sites More sharing options...
Pioneer Posted November 16, 2016 Share Posted November 16, 2016 Isn't it funny that a Mexican built Focus brings public scrutiny, but a Chinese Buick and an Indian Ford don't? 3 Quote Link to comment Share on other sites More sharing options...
92merc Posted November 16, 2016 Share Posted November 16, 2016 How do you become a billionaire? First, get a billion dollars......... I know how to become a millionaire. First become a billionaire, then get a divorce. :-) 2 Quote Link to comment Share on other sites More sharing options...
fordmantpw Posted November 16, 2016 Share Posted November 16, 2016 Isn't it funny that a Mexican built Focus brings public scrutiny, but a Chinese Buick and an Indian Ford don't? And all the F150 (Lobo) and Super Duty trucks that get sold south of the border seem to get forgotten as well. Quote Link to comment Share on other sites More sharing options...
twintornados Posted November 16, 2016 Share Posted November 16, 2016 I am going out a limb here, but I can pretty much bet that the next Presidential limousine will NOT be a Lincoln.... Quote Link to comment Share on other sites More sharing options...
Kev-Mo Posted November 16, 2016 Share Posted November 16, 2016 Someone help me out here. With NAFTA in place, Trump can't really apply a 35% tariff. So, why would Fields even bring this up? Article 1 Section 8 of the US Constitution gives CONGRESS the authority to regulate trade. The President does not have the constitutional authority to regulate trade. If the rules are followed, Congress would have to pass a bill -then send to the POTUS for signing. Good luck with that. Quote Link to comment Share on other sites More sharing options...
Kev-Mo Posted November 16, 2016 Share Posted November 16, 2016 NAFTA allows for quick withdraw. All you need is a 6 months notice from the executive branch. There is no Brexit style negotiation required. No congressional votes required either so Trump can really pull us out of NAFTA and slap a 35% tariff on vehicles made in Mexico if he wants. Maybe the POTUS can withdraw - but constitutionally he is not authorized to regulate trade. That has to come from congress. Quote Link to comment Share on other sites More sharing options...
silvrsvt Posted November 16, 2016 Share Posted November 16, 2016 I am going out a limb here, but I can pretty much bet that the next Presidential limousine will NOT be a Lincoln.... Its not http://www.foxnews.com/auto/2016/11/09/president-trumps-car-is-almost-ready.html Quote Link to comment Share on other sites More sharing options...
Pioneer Posted November 16, 2016 Share Posted November 16, 2016 (edited) Constitutional authority hasn't stopped Obama, except on the cases he's lost in the Supreme Court. Trump may have said he isn't going to use executive orders, but Obama also said he was going to have the most open administration ever and you could keep your doctor. Edit: I'm not trying to single or either party. I Think both sides are liars and thieves. Edited November 16, 2016 by Pioneer 1 Quote Link to comment Share on other sites More sharing options...
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