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I guess its that the Japanese Company can make cars profitably anywhere but making cars for the US market in the US means there's no/less import taxes, also bec
by helsinkiandrew 4y ago
I guess its that the Japanese Company can make cars profitably anywhere but making cars for the US market in the US means there's no/less import taxes, also because the factories are huge they often get local tax breaks, and the cars may also eligible for EV/hybrid tax credits (I think Toyota have sold over 200K so there cars can no longer get this).
I think making cars in Mexico for the US became less worthwhile when Trump pulled the US out of NAFTA.
- phpisthebest 4y ago>US became less worthwhile when Trump pulled the US out of NAFTA. lol, trump did not "pull the US Out of NAFTA" not only is that not with in the power of the president to do, it was never on the table, NATA was replaced with USMCA, and only made a few small changes, for Automotive that means 75% of the vehicle components must be made in MX, US, or Canada, up from 64% under NAFTA Nothing in the law would impact making at car in the US vs MX, and was aimed at preventing increased parts from China or other non-north American nations, and all of the changes were passed by congress with wide bipartisan support
- helsinkiandrew 4y agoOK - but he signed a deal with Mexico that replaced it and didn't the new deal mean that more parts had to be from the US and half the car factory workers needed to pay $16 an hour - which would make Mexico less attractive?
- phpisthebest 4y ago> didn't the new deal mean that more parts had to be from the US and half the car factory workers needed to pay $16 an hour Both were proposed changes that were not adopted in the final version.