US Imports Cars From?
A Facebook friend, Sandiway Fong, sent me the statics compiled by the "US Commerce Department's International Trade Administration."
Quick guess. Which country exports the most cars to the US. I didn't ask for the make of the cars, just which country sends us the most cars. My incorrect guess would be Japan. I see Japanese cars everywhere. I am wrong. Mexico sends almost 3 million cars to the US.
Made in Mexico obviously does not mean a Mexican car. It means Mexican workers make Toyotas and Volkswagens, and who knows what other cars. Three million from Mexico are shipped to the US. Suddenly these cars will cost 25% more than they used to cost Americans -- thanks to Trump's tariffs.
Next highest number of vehicles? South Korea (1.5 million) and then Japan (1.4 million), then Canada (1 million).
Who do we hit hardest? Near and dear and landlocked to us -- Mexico south of us, Canada north of us. Of course they make cars for other people, but their primary market is us. Of course Canada and Mexico can, are able, to ship cars "over" seas, but that means shipping costs, etc.
Near and dear bordering us countries. Remember the three million cars you used to send across land to us. Bam. Twenty five percent tax on the value of the vehicle -- if you want to sell your car to American citizens. Canada. You only send us one million cars each and every year, but you, too, will be hit by a 25% tax.
We aren't declaring war on you. We aren't sending troops and tanks and planes. We are not physically aggressive. We are declaring an Economic War on your workers who are being taxed 25%. Yes, your workers. Any car made by the people in your country competes with cars made by American workers. We are taxing your workers 25%.
Cheap labor abroad? Nope. The cost of your laborer, when it comes to making cars, has gone up by 25%. Now there is an incentive for you to use laborers in America. Make your product in America, that is the meaning of the word tariff.
Tariff? Tax on stuff made by workers who live abroad, outside the United States of America.