Posted on Jun 5, 2019
Ohio To Juárez And Back Again: Why Tariffs On Mexico Terrify The Auto Industry
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President Trump has threatened to impose tariffs on goods imported from Mexico, starting next week, if Mexico doesn't take action to reduce the flood of Central American migrants across the Southern border of the U.S.
The proposed tariffs — which would start at 5% on goods crossing the border and could ramp up to 25% over time — would play havoc with supply chains in the auto industry.
To understand why, consider a vehicle's wiring harness — the car's nervous system, consisting of a complex network of wires that connect electronic components throughout the car body.
"It's a huge, heavy bundle of wires and it's gotten dramatically more complicated as cars become more electronic," says Sue Helper, an economist at Case Western Reserve University. "If they're done wrong, you can get electrical problems that you'll never solve."
The proposed tariffs — which would start at 5% on goods crossing the border and could ramp up to 25% over time — would play havoc with supply chains in the auto industry.
To understand why, consider a vehicle's wiring harness — the car's nervous system, consisting of a complex network of wires that connect electronic components throughout the car body.
"It's a huge, heavy bundle of wires and it's gotten dramatically more complicated as cars become more electronic," says Sue Helper, an economist at Case Western Reserve University. "If they're done wrong, you can get electrical problems that you'll never solve."
Ohio To Juárez And Back Again: Why Tariffs On Mexico Terrify The Auto Industry
Posted from npr.org
Cars
Mexico
International Trade
Taxes
Posted >1 y ago
Responses: 2
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PO1 William "Chip" Nagel
Washington Examiner, March,20, 2019.”Immigrants from the three Central American nation’s sourcing many illegal border crossers sent a record amount of money home last year, bringing the total this decade to $120 billion.
Guatemala, Honduras and El Salvador all said that natives in the United States sent over $17 billion home last year alone.
Since 2009, legal and illegal immigrants from those three nations have shipped $120 billion home, according to an immigration expert citing United Nations and Latin American banking data”.
Wikipedia
; “Mexico is the third largest remittance receiving country in the world, with a total of $25.7 billion received in 2015. The vast majority of these remittances come from the U.S. In all, only $500 million of the $25.7 billion in remittances came from sources other than the United States”.
POTUS Trump should tax those dollars and double the tax if the illegal migration continues!!
Washington Examiner, March,20, 2019.”Immigrants from the three Central American nation’s sourcing many illegal border crossers sent a record amount of money home last year, bringing the total this decade to $120 billion.
Guatemala, Honduras and El Salvador all said that natives in the United States sent over $17 billion home last year alone.
Since 2009, legal and illegal immigrants from those three nations have shipped $120 billion home, according to an immigration expert citing United Nations and Latin American banking data”.
Wikipedia
; “Mexico is the third largest remittance receiving country in the world, with a total of $25.7 billion received in 2015. The vast majority of these remittances come from the U.S. In all, only $500 million of the $25.7 billion in remittances came from sources other than the United States”.
POTUS Trump should tax those dollars and double the tax if the illegal migration continues!!
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CSM Charles Hayden
MAJ James Woods America’s immigration problem does not evolve from ‘those other countries’!
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MAJ James Woods
CSM Charles Hayden Only makes the Wash Examiner even more BS as it conflates two separate topics. It sourced numbers based on legal and illegal immigrants working in the US sending money back to three specific countries currently migrating to US in large numbers seeking refugee status.
Well then do a comparative analysis when the mass migration of refugees from other countries from the last 2, 3, 5 decades using the same metric.
Cause and effect: Immigrants in US send money to family members to get them out of their country that is in turmoil. How is this a story unless they are implying these numbers don’t compare to past refugee migrations from other nations.
Washington Examiner is fake news with a flawed narrative.
Well then do a comparative analysis when the mass migration of refugees from other countries from the last 2, 3, 5 decades using the same metric.
Cause and effect: Immigrants in US send money to family members to get them out of their country that is in turmoil. How is this a story unless they are implying these numbers don’t compare to past refugee migrations from other nations.
Washington Examiner is fake news with a flawed narrative.
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CSM Charles Hayden
MAJ James Woods You are ignoring my concept of compelling those countries to reduce the number of their citizens fleeing despotic, corrupt countries.
Good night.
Good night.
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Col Joseph Lenertz
We should not pretend there is no cost to allowing illegal immigration. There is a very large and unmeasured cost. There are several economic burdens including transfer of wealth to corrupt countries of origin, the cost of many-and-varied welfare programs, the cost of medical care, and the cost of policing (border patrol, ICE, etc) activities. Other burdens include court queues (asylum, immigration, and criminal), traffic, housing, crime, drugs, and human trafficking.
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OK it hurts the auto industry...WHAAAAA! Our vehicles are extremely overpriced now. The executives won't take pay cuts and the union workers making $50 and hour or more certainly won't take cuts so it will be passed on to us. Our cars and trucks are priced so high because of what...people will pay it. If these tariffs drive up the cost of making them then the auto industry should have to suck some of that up IMHO. When I was doing research on my masters I interviewed folks at a auto plant. There was one supervisor that told me one night he had a machine go down. There was a guy at work that could fix it because he used to work on those machines. It wasn't his job so they had to call a guy in who had to drive an hour to come turn a wrench for an hour and then drive home an hour and he got paid triple time to do it...three days of work for three hours of actual work and driving. If auto makers want to get costs under control and they think these tariffs are going to hurt, they will because they can't get their own costs under control. I have no sympathy for them...as my old drill sergeant told me look up sympathy and it is right between $&!+ and syphillis. I am for the tariffs so that maybe they will take a little bit of responsibility and fix thier own problems and keep folks form transiting and coming across borders.
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