Japanese automakers: Mexican autoworkers get wage boost, Americans see car prices rise

[essentialsaltes]

Japan auto companies triple Mexican pay rather than move to US
Trump hailed new NAFTA as American job generator, but higher prices appear in offing

The new North American free trade agreement that goes into effect Wednesday was touted by U.S. President Donald Trump as an engine of American job creation. But Japan's automakers are largely opting instead to keep operations in place and pay Mexican workers more or even just pay tariffs.

Consumers will ultimately pay the price for inefficient production and increased component flow. U.S. research agency Center for Automotive Research estimates that 13% to 24% of all cars sold in the U.S. will be subject to tariffs. If automakers pass these costs on, prices will rise by $470 to $2,200.

 

[grasping the after wind]

Japan auto companies triple Mexican pay rather than move to US
Trump hailed new NAFTA as American job generator, but higher prices appear in offing

The new North American free trade agreement that goes into effect Wednesday was touted by U.S. President Donald Trump as an engine of American job creation. But Japan's automakers are largely opting instead to keep operations in place and pay Mexican workers more or even just pay tariffs.

Consumers will ultimately pay the price for inefficient production and increased component flow. U.S. research agency Center for Automotive Research estimates that 13% to 24% of all cars sold in the U.S. will be subject to tariffs. If automakers pass these costs on, prices will rise by $470 to $2,200.

Sounds like a win / win. US gets much need tax revenue and Mexicans get much needed wage increases meaning that they can seek a better life without leaving Mexico. Meanwhile the rich Americans will pay more for their cars meaning they will have less money to hoard which should please social justice advocates.

 

[Timtofly]

The US spreads the wealth around, and people get upset.

What else is new?

 

[Osmotik]

The US spreads the wealth around, and people get upset.

What else is new?

I completely agree, I think one of the only options the US has in saving any sense of unity/culture is to be more charitable while at the meantime, focusing on family and morals. Essentially becoming more Christian. I'm wary of hardcore fascism of course but we really tend to dig ourselves in holes sometimes with the way we act (greed, hypocrisy, no direction)

 

[essentialsaltes]

Wow, you guys have some surprising takes on this. Maybe Trump should change his slogan to "America Last".

 

[Sparagmos]

The US spreads the wealth around, and people get upset.

What else is new?

Generally it’s conservatives who get upset about wealth being spread around.

 

[Occams Barber]

The US spreads the wealth around, and people get upset.

What else is new?

Less American jobs and more expensive cars.

If the new NAFTA is a Trump success story I wonder what failure looks like.

OB

 

[Hank77]

The US spreads the wealth around, and people get upset.

What else is new?

Not a US decision to spread the wealth around but I like the idea of Japan staying in Mexico if they will pay their employees a decent living wage which is about $10.00 an hour for a family of four. They have universal healthcare that US citizens make use of, especially for expensive drugs such as insulin.
If they have good jobs and schooling there they won't need to come here.

US companies need to come back here.

 

[Timtofly]

Less American jobs and more expensive cars.

If the new NAFTA is a Trump success story I wonder what failure looks like.

OB

Did Japan raise the standard pay because of NAFTA? Did Japan plan to do it any way?

Don't buy an expensive car for yourself. Buy one and give it to a couple who cannot afford one. That is the point.

 

[Occams Barber]

Did Japan raise the standard pay because of NAFTA? Did Japan plan to do it any way?

Don't buy an expensive car for yourself. Buy one and give it to a couple who cannot afford one. That is the point.

Did you read the article from the OP?

The center (*) also said U.S. car sales will drop by up to 1.3 million units annually due to the Trump administration's trade policy -- including sanctions on China. It estimates that 70,000 to 360,000 jobs will be lost, leading to a $6 billion to $30.4 billion reduction in gross domestic product.​

*U.S. research agency Center for Automotive Research
OB

 

[grasping the after wind]

Wow, you guys have some surprising takes on this. Maybe Trump should change his slogan to "America Last".

Why do you find the takes surprising? Why do you think that good fortune of Mexican citizens in any way harms America? Do you want Mexicans to remain underpaid?

 

[essentialsaltes]

Why do you find the takes surprising? Why do you think that good fortune of Mexican citizens in any way harms America? Do you want Mexicans to remain underpaid?

Because Trump did nothing but jaw about how NAFTA was "one of the worst things that ever happened to the manufacturing industry. ... NAFTA is the worst trade deal maybe ever signed anywhere, but certainly ever signed in this country. ... It stripped us of manufacturing jobs. We lost our jobs. We lost our money. We lost our plants. It is a disaster. ... Other countries have ripped us like you've never seen before ... Before NAFTA went into effect — by the way, NAFTA, a total disaster — there were 280,000 autoworkers in Michigan. Today that number is roughly 165,000 — and would have been heading down big-league if I didn't get elected. I will tell you that right now."

To Trump, NAFTA meant that other countries were benefitting at our expense.

He explicitly negotiated these terms of the successor UMSCA to help American autoworkers, and get manufacturing back in the US:

DRIVING NEW GROWTH FOR THE AUTO INDUSTRY: USMCA will provide a massive boost to American manufacturers, particularly our vital auto industry.

• USMCA will achieve fairer, more reciprocal trade that supports high-paying American manufacturing jobs and grows the economy.
• USMCA includes innovative provisions to incentivize new investments in the American auto industry and support high-paying jobs for American auto workers.

Instead, the result is no new American jobs and factories (at least from Japanese automakers) and more money flowing from American consumers into other countries.

So even if you personally are happy about this great gain in the living standard of Mexican autoworkers, benefitting at our expense, it represents yet another failure of Trump to carry out his stated agenda. By his own measures, he's made things worse with his new trade deal.

 

[grasping the after wind]

Because Trump did nothing but jaw about how NAFTA was "one of the worst things that ever happened to the manufacturing industry. ... NAFTA is the worst trade deal maybe ever signed anywhere, but certainly ever signed in this country. ... It stripped us of manufacturing jobs. We lost our jobs. We lost our money. We lost our plants. It is a disaster. ... Other countries have ripped us like you've never seen before ... Before NAFTA went into effect — by the way, NAFTA, a total disaster — there were 280,000 autoworkers in Michigan. Today that number is roughly 165,000 — and would have been heading down big-league if I didn't get elected. I will tell you that right now."

To Trump, NAFTA meant that other countries were benefitting at our expense.

He explicitly negotiated these terms of the successor UMSCA to help American autoworkers, and get manufacturing back in the US:

DRIVING NEW GROWTH FOR THE AUTO INDUSTRY: USMCA will provide a massive boost to American manufacturers, particularly our vital auto industry.

• USMCA will achieve fairer, more reciprocal trade that supports high-paying American manufacturing jobs and grows the economy.
• USMCA includes innovative provisions to incentivize new investments in the American auto industry and support high-paying jobs for American auto workers.

Instead, the result is no new American jobs and factories (at least from Japanese automakers) and more money flowing from American consumers into other countries.

So even if you personally are happy about this great gain in the living standard of Mexican autoworkers, benefitting at our expense, it represents yet another failure of Trump to carry out his stated agenda. By his own measures, he's made things worse with his new trade deal.

By Trump's measure he made things the best they have ever been. I'm sure if you ask him he will tell you. Not only ,making America great again but lifting Mexico up in the process. I bet he would tell you that China alone will be harmed by both the US and Mexico becoming more self sufficient due to the wonderful trade deals he has negotiated.

 

[essentialsaltes]

By Trump's measure he made things the best they have ever been. I'm sure if you ask him he will tell you.

Sure, but you don't believe him any more than I do.

 

[Trogdor the Burninator]

Did you read the article from the OP?

The center (*) also said U.S. car sales will drop by up to 1.3 million units annually due to the Trump administration's trade policy -- including sanctions on China. It estimates that 70,000 to 360,000 jobs will be lost, leading to a $6 billion to $30.4 billion reduction in gross domestic product.​

*U.S. research agency Center for Automotive Research
OB

As if US car makers weren't in enough trouble already. GM has basically pulled out of the rest of the world minus Central and South America at this point. Ford is in decline. Trump's sanctions will just speed up the result.

 

[istodolez]

Japan auto companies triple Mexican pay rather than move to US
Trump hailed new NAFTA as American job generator, but higher prices appear in offing

The new North American free trade agreement that goes into effect Wednesday was touted by U.S. President Donald Trump as an engine of American job creation. But Japan's automakers are largely opting instead to keep operations in place and pay Mexican workers more or even just pay tariffs.

Consumers will ultimately pay the price for inefficient production and increased component flow. U.S. research agency Center for Automotive Research estimates that 13% to 24% of all cars sold in the U.S. will be subject to tariffs. If automakers pass these costs on, prices will rise by $470 to $2,200.

WELL FINALLY! The Mexicans will make more money and they can FINALLY SEND US THE CHECK FOR THE WALL!!!!

Trump did it again! He made America great!

 

[ToddNotTodd]

WELL FINALLY! The Mexicans will make more money and they can FINALLY SEND US THE CHECK FOR THE WALL!!!!

Trump did it again! He made America great!

You know, conservatives came up with the moniker “Trump derangement syndrome” as a way to denigrate liberals, but from this thread (and countless others), I’m seeing something different...

 

[istodolez]

You know, conservatives came up with the moniker “Trump derangement syndrome” as a way to denigrate liberals, but from this thread (and countless others), I’m seeing something different...

No, you got it wrong! Trump did a GOOD THING! He sold America on this idea that NAFTA was bad for America and he re-crafted it into a NEW agreement that was worse for Americans in terms of how much it will cost us for goods like cars, but he's definitely helped the Mexicans!

(In all seriousness by helping increase the salaries of Mexican labor they will be less inclined to try to cross the border for a better life. Who knew this was Trump's plan all along? He was going to lift the Mexicans out of poverty at our expense! Don't get me wrong...I'm actually OK with that. But I don't think that is what Trump's supporters were thinking he was promising)

 

[cow451]

Wow, you guys have some surprising takes on this. Maybe Trump should change his slogan to "America Last".

Or, "I'm Outta Here"

 

[cow451]

No, you got it wrong! Trump did a GOOD THING! He sold America on this idea that NAFTA was bad for America and he re-crafted it into a NEW agreement that was worse for Americans in terms of how much it will cost us for goods like cars, but he's definitely helped the Mexicans!

(In all seriousness by helping increase the salaries of Mexican labor they will be less inclined to try to cross the border for a better life. Who knew this was Trump's plan all along? He was going to lift the Mexicans out of poverty at our expense! Don't get me wrong...I'm actually OK with that. But I don't think that is what Trump's supporters were thinking he was promising)

Globalism at it's finest.