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Big Three Throw Hissy Fit Over Japan Trade AgreementThe Big Three, Ford, GM, and Stellantis, are throwing a hissy fit over President Trump’s new trade agreement with Japan. Through The American Automotive Policy Council, which represents the three American(ish) automakers, the companies have expressed outrage at the deal when Mexico and Canada don’t enjoy something similar.
The state of Massachusetts wants to know how far you’re driving each year.
What they’re arguing is that cars build in Canda and Mexico have vastly more parts made in the US versus vehicles assembled in Japan. But the Japanese actually import few models into this country, opting to build them here instead.
According to CNN, last year 1.3 million cars from Japan were imported into the US, or about 8 percent of all new vehicles. It’s a drop in the bucket, but the Big Three are throwing a hissy fit over it.
While that’s senseless, once you understand what the whole thing is really about, it suddenly makes plenty of sense.
Those three “American” automakers (Stellantis is based in Amsterdam with mostly European leadership) want low or ideally no tariffs for all the vehicles they’re building in Canada and Mexico instead of bringing production back within the borders of this nation.
The percentage of cars, trucks, and SUVs manufactured by the Big Three in Mexico or Canada that are then sold in the US is pegged by industry analysts at somewhere between 25 and 33 percent. No wonder they’re so upset.
But to offer a smoke screen for their outrage, the “American” automakers had their attack dog, Matt Blunt, who is president of The American Automotive Policy Council, make some rather weak sauce accusations towards Japan.
“Japan has been one of the most closed automotive markets in the world,” he’s quoted as saying by CNN.
Thankfully, the news outlet talked to an economist who pointed out that the sheer size of most American vehicles won’t play well in Japan. They just don’t fit in the compact spaces of the island nation.
But the Big Three want you to be mad at Japan and President Trump so they get to bring in vehicles made in Mexico and Canada without tariffs imposed. It was a sweet deal for them while it lasted, but the economic table is being reset and things have changed dramatically.
Image via Polina Smelova/Pexels
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