The Truth About Cars » punitive tariffs http://www.thetruthaboutcars.com The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. Tue, 01 Sep 2015 18:20:13 +0000 en-US hourly 1 http://wordpress.org/?v=4.2.4 The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars no The Truth About Cars editors@ttac.com editors@ttac.com (The Truth About Cars) 2006-2009 The Truth About Cars The Truth About Cars » punitive tariffs http://www.thetruthaboutcars.com/wp-content/themes/ttac-theme/images/logo.gif http://www.thetruthaboutcars.com Chicken Tax Ready For The Fryer, Hilux Et Al Not Ready For US Market http://www.thetruthaboutcars.com/2015/06/chicken-tax-ready-for-the-fryer-hilux-et-al-not-ready-for-us-market/ http://www.thetruthaboutcars.com/2015/06/chicken-tax-ready-for-the-fryer-hilux-et-al-not-ready-for-us-market/#comments Mon, 29 Jun 2015 16:00:07 +0000 http://www.thetruthaboutcars.com/?p=1101561 As key free trade agreements near signing, the chicken tax may soon become a bucket of Kentucky fried goodness. Just don’t hold your breath for a Hilux. The Trans-Pacific Partnership and Transatlantic Trade and Investment Partnership agreements would dismantle the 25 percent tariff on light-duty trucks like the Toyota Hilux, Ford Ranger and Volkswagen Amarok, […]

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Seventh-Generation Toyota Hilux

As key free trade agreements near signing, the chicken tax may soon become a bucket of Kentucky fried goodness. Just don’t hold your breath for a Hilux.

The Trans-Pacific Partnership and Transatlantic Trade and Investment Partnership agreements would dismantle the 25 percent tariff on light-duty trucks like the Toyota Hilux, Ford Ranger and Volkswagen Amarok, Automotive News reports. The latter agreement would align vehicle regulations between the United States and European Union, as well.

However, even if the tariff were to come down like the Berlin Wall, imports of the aforementioned trucks — and others like them — won’t be forthcoming in the near term for a few other reasons, starting with how many of the 39 total nations involved in their respective trade agreements have pickup truck plants ready to send their wares to the U.S. There, Thailand — which isn’t among those signing at this time — produces most of the world’s mid-size trucks. However, the nation’s government has expressed interest in joining the TPP after its enactment, leading to potential U.S.-bound production.

Another reason for the delay comes down to the dismantling of the tariff itself, which is set to take years, if not decades, with Japan taking the longest at 25 years; the Japanese rollback is part of a bilateral U.S.-Japan side deal concurrent of the TPP.

Safety figures into this, as well, as trucks made for the global market aren’t made for the U.S.’ special needs. Meanwhile, differences in how trucks are packaged — big blingmobiles for American consumers, spartan utility for everyone else — are likely to stem importation for a while.

Finally, some automakers have concerns their products wouldn’t fare well in the U.S., ranging from product overlap and right-sizing, to brand identity.

In time, however, the trucks some have wanted will board container ships bound for ports on both coasts as automakers would come to see how much profit they could reap with the chicken tax tossed in the fryer, leading to more competition in the USDM truck game down the road.

(Photo credit: Toyota)

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Republican Hopeful Donald Trump Threatens Ford With Tariffs Over Mexico http://www.thetruthaboutcars.com/2015/06/republican-hopeful-donald-trump-threatens-ford-with-tariffs-over-mexico/ http://www.thetruthaboutcars.com/2015/06/republican-hopeful-donald-trump-threatens-ford-with-tariffs-over-mexico/#comments Thu, 18 Jun 2015 19:00:49 +0000 http://www.thetruthaboutcars.com/?p=1095409 Republican presidential hopeful and billionaire Donald Trump wants to bring the pain via punitive tariffs to Ford for manufacturing vehicles in Mexico. During his announcement of his 2016 campaign Tuesday, The Detroit News says Trump vowed he would levy a 35 percent tariff on Ford parts and vehicles imported from Mexico if the automaker presses […]

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Smug Motherfucker Donald Trump Douching It Up Like He Always Does

Republican presidential hopeful and billionaire Donald Trump wants to bring the pain via punitive tariffs to Ford for manufacturing vehicles in Mexico.

During his announcement of his 2016 campaign Tuesday, The Detroit News says Trump vowed he would levy a 35 percent tariff on Ford parts and vehicles imported from Mexico if the automaker presses forward with a $2.5 billion investment in the nation, claiming the move would “take away thousands” of jobs from American workers.

Trump then proceeded to roleplay how he would deliver the “bad news” to “the head of Ford,” CEO Mark Fields:

Let me give you the bad news: every car, every truck and every part manufactured in this plant that comes across the border, we’re going to charge you a 35 percent tax — OK? — and that tax is going to be paid simultaneously with the transaction. They are going to take away thousands of jobs.

Announced in April, the $2.5 billion investment would add 3,800 jobs to the 11,300 already employed by Ford in Mexico, and would include new engine and transmission plants aimed toward the export market in the United States and other global markets.

Trump continued on with his roleplay, stating Ford would use lobbyist power to persuade “President Trump” to drop the tax, only for him to sandbag the automaker into submission. He added he knew Fields personally, and thought Ford was a good company overall.

In response, spokeswoman Christin Baker reiterated Ford’s investments into its home market:

We are proud that we have invested $6.2 billion in our U.S. plants since 2011 and hired nearly 25,000 U.S. employees. Overall, 80 percent of our North American investment annually is in the U.S., and 97 percent of our North American engineering is conducted in the U.S.

Of course, Trump wouldn’t be legally able to punish Ford for building its plants wherever it wanted, let alone single-out Ford with his plan without also doing the same to General Motors and FCA (how he would deal with Fiat owning Chrysler would be a whole other round of metaphors and hyperbole altogether).

At least one thing is for certain in Trump’s campaigning thus far: the dead cat on his head is actually his hair.

(Photo credit:Gage Skidmore/Flickr/CC BY-SA 2.0)

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Trade War Watch 8: China Probes US Bailout http://www.thetruthaboutcars.com/2009/11/trade-war-watch-8-china-probes-us-bailout/ http://www.thetruthaboutcars.com/2009/11/trade-war-watch-8-china-probes-us-bailout/#comments Tue, 17 Nov 2009 10:40:21 +0000 http://www.thetruthaboutcars.com/?p=335847 As U.S. President Barack Obama landed in Shanghai for a weeklong visit to his largest creditor, China, the news awaited him that China’s Ministry of Commerce will investigate the U.S. government’s financing and rescue plans for the American auto industry, Shanghai Daily reports. The move is part of China’s probe into possible dumping and subsidies […]

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Bail! Picture missinginaction.be

As U.S. President Barack Obama landed in Shanghai for a weeklong visit to his largest creditor, China, the news awaited him that China’s Ministry of Commerce will investigate the U.S. government’s financing and rescue plans for the American auto industry, Shanghai Daily reports.

The move is part of China’s probe into possible dumping and subsidies on U.S.-made vehicles imported to China, the ministry said. Trade officials will be looking for dumping practices and for unfair government subsidies.

Ministry spokesman Yao Jian said China’s probe will look into 24 items which include the U.S. government’s rescue and restructuring plans for the auto industry as well as government subsidies on new-energy vehicles and its “cash-for-clunkers” incentive program.

The concerned U.S. automakers have the right to defend themselves with evidence presented to Chinese investigators by registering within 20 days after China started the probe of U.S. auto imports on November 6, and corrective action must be taken within 60 days after a case is registered.

The investigation applies to sedans and off-road vehicles with engine displacements of 2.0 liters or more, and the whole process of the probe and ruling is expected to be completed within 12 months.

The probe is widely seen as a tit-for-tat measure after Obama imposed punitive tariffs on Chinese tires and steel pipes. These investigation have become a common occurrence: The U.S. has carried out 13 investigations against Chinese products this year for alleged dumping and illegal subsidies.

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