Toro
Diamond Member
Tariffs are taxes on trades. Higher taxes on corporations cause less investment and less jobs. Conservatives used to understand this. Now they are cheering for higher taxes on consumers and corporations. But simply because someone dresses up a leftist policy and calls it "conservative" does not mean it isn't a bad idea.
BMW says U.S. tariffs on EU cars may hit investment there
By slapping trade taxes on the automobile companies, it just makes those companies less competitive in global markets as American-made cars become more expensive.
Economics 101
U.S. tariffs on imported cars could lead BMW (BMWG.DE) to reduce investment and cut jobs in the United States due to the large number of cars it exports from its South Carolina plant, the German carmaker has warned.
President Trump’s administration last month launched an investigation into whether auto imports posed a national security threat and Trump has threatened to impose a 20 percent tariff on all imports of EU-assembled cars. ...
The BMW plant in South Carolina is its largest globally and ships more than 70 percent of its annual production to other export markets, the company said.
Chinese tariffs on U.S. passenger cars, imposed in retaliation for U.S. duties on Chinese goods, have already hiked up the cost of exporting to China, BMW said. Any U.S. tariffs would likely lead to further retaliatory measures from China and the European Union.
In addition, higher tariffs on components imported to the United States would make other production locations outside the country more competitive.
“All of these factors would substantially increase the costs of exporting passenger cars to these markets from the United States and deteriorate the market access for BMW in these jurisdictions, potentially leading to strongly reduced export volumes and negative effects on investment and employment in the United States,” BMW said in the letter.
President Trump’s administration last month launched an investigation into whether auto imports posed a national security threat and Trump has threatened to impose a 20 percent tariff on all imports of EU-assembled cars. ...
The BMW plant in South Carolina is its largest globally and ships more than 70 percent of its annual production to other export markets, the company said.
Chinese tariffs on U.S. passenger cars, imposed in retaliation for U.S. duties on Chinese goods, have already hiked up the cost of exporting to China, BMW said. Any U.S. tariffs would likely lead to further retaliatory measures from China and the European Union.
In addition, higher tariffs on components imported to the United States would make other production locations outside the country more competitive.
“All of these factors would substantially increase the costs of exporting passenger cars to these markets from the United States and deteriorate the market access for BMW in these jurisdictions, potentially leading to strongly reduced export volumes and negative effects on investment and employment in the United States,” BMW said in the letter.
BMW says U.S. tariffs on EU cars may hit investment there
By slapping trade taxes on the automobile companies, it just makes those companies less competitive in global markets as American-made cars become more expensive.
Economics 101
