Trump Approach on Nafta Relieves Automakers’ Worst Fears

All I see from Trumps tariffs and trade deals is everything I buy is going to cost me more.

I was asked what ! What! What!American auto makers could possibly offer "European" drivers. How about Chevy Corvette Stingray, Ford Mustang, Dodge Challenger, Chevy Camaro? Not green enough? Chevy Volt, Bolt and Sonic, Ford Escape, Fiesta, and I don't know a few compact Jeeps and the Jeep Wrangler! Oh those poor Europeans blocked from buying American because tarriffs. Between you and me I think they would like the Chrysler mini van. Just saying it's more mini than the Japanenese mini vans.

Haters gonna hate, but the truth is that this is a major victory for working men and women in the USA.

Trump is doing the shrewd thing of renogotiating trade deals that were not really benefiting us. Why are so many US cars made in Canada and shipped back to the US. Why do we tolerate 200% tariffs slapped on our dairy products. I see people on this blog like to insult Trump by name calling. I like to look at the facts. Trumps deal with Mexico was beneficial to the US by now increasing the US sourced parts to 75% from 66%. The fact that most of the posts on this blog are just childish insults directed at Trump.

The only arrangement with Mexico that makes economic sense for the United States is to tariff Mexican auto imports to the point that they cannot compete in the American marketplace. Full stop. We should trade freely with Canada, Japan, and Europe, including abolishing the chicken tax. Workers and the environment enjoy similar protections as they do here, if not still more stringent. Not so with Mexico. Corruption is endemic. Workers are powerless. Pollution is winked at. Any attempt to compete with them will just be a race to the bottom. It's time to tell the global automakers that sunk billions into Mexican plants that they made a bad bet. If the VIN starts with a 3, it's not welcome in the US consumer market. How they choose to react to this news is up to them.

Trump creates a problem then pretends to fix it. But, all he really does is sow confusion. The changes he, or whoever really put it together, made are very ambiguous in extent of benefit. It's as if he made a change just to make a change but there is no clear benefit from the change. But, everyone is happy now because the disruptive child will now place his anarchistic gaze upon some other unfortunate set of people. Everyone is getting a good chance to grovel and show just how weak and cowed they are. Like the auto industry who looks very much like good little followers of the madman.

I am just rolling my eyes....

Trump only knows lies and deceit to win deals. He has no real moral values of how the real world works.

Relieved the automakers' worst fears, huh? Wonder how much they had to pay Trump for that little favor. Everything is for sale in Trump World. Even honor (of which he has no personal knowledge). T RAITOR R ACIST U NFIT M ISOGYNIST P ANSY

"These terms would force automakers to buy more parts made in the United States — and possibly Canada." This largely assumes manufacturing capability will remain as it is now. How few years before Mexican workers are making the additional 12.5% parts in Mexico as well? Even if some Mexican workers get a raise, there's still a significant labor cost difference. Mexico is much more capable of increasing its manufacturing output now than when NAFTA was signed. The vague, maybe sometime agreement to perhaps someday cap total Mexican duty-free auto imports fairly admits Mexico taking up the slack could well happen. The formula change might have had an effect slowing job loss 24 years ago. But the horse is pretty much out of the barn, as far as any significant increase in U.S. manufacturing jobs goes. More robotic manufacturing, yes; more of the manufacturing that was, no. It's not hard to see why the Mexican government is eager to get this signed. In the general turmoil Trump has made and will keep on making, increased costs will be passed to American consumers, Mexican manufacturing gets more room to grow and at a pace that permits paying some, not all, Mexican workers more. That's a win for the Mexican government, delivering opportunity to business and labor at the same time. Hard to see how this is not just higher prices and empty promises for American consumers and workers.

U.S. Expectations: Not the Worst Possible Outcome Everybody sighs in relief. It's not a race to the bottom anymore. We found the bottom and are tunneling under it.

Remember when Trump was against bailing out Big Auto? Trump said they should be left to flounder and fail without any aid from the government. Would someone please remind him that he wasn't always a supporter of the auto industry?

Since President Roosevelt visited Canada in 1938 and pledged cooperation, friendship and alliance with Canada, Canadians have died on the battlefield side by side with US forces (in Europe, in Korea, in Afghanistan, in the Gulf, etc...); have eagerly participated, in tandem with the US, in NORAD, NATO, the GATT, WTO, NAFTA, IMF, etc..., in an effort to build a prosperous and safer world; and have integrated their economy with that of the US, believing the American pledge that greater prosperity for all could be achieved by working together. After 9\11, Canadians joined the efforts to fight terrorism and to secure the borders of North America, even though Canada was not a prime target of terrorism (but our friend was!). The actions taken by the White House are seen by Canadians not only as a betrayal of trust and friendship, but as an attack by a now malignant nation intent on bullying its neighbor and hurting its economy. What the White House is doing is a form of economic warfare. Nixon wanted to try something similar in 1971. He was stopped by Henry Kissinger who reminded him that the security of the US could only be achieved with the cooperation of Canada. The geography of North America makes that necessary. Maybe it is time for Canada to leave NATO and NORAD, to cancel US military fly-over rights and military cooperation, and to become a doorway for illegal immigration to the US. The US may win this 'shake down', but turning friends into enemies rarely pays off.

Once again Trump creates headlines by making a problem, then makes more headlines when he supposedly solves the problem that he alone created.

Many auto imports are luxury cars. Do you think those buyers will just switch to buying American vehicles or are they wealthy enough to just pay up? The increase in auto parts costs will mean higher prices for domestic companies as well reducing domestic demand. Even if some of those parts were made in the U.S., they would be made at non-union suppliers in at-will states that have low pay and worse benefits (not a win). On top of that, there would be incentive to simply move assembly out of the country to serve foreign markets because making it in the U.S. would be too expensive to export to certain markets.

I always thought the GOP was for free trade. Now I see that it is the party of more regulation and government interference in the free market. Mandating a base wage of $16.00 an hour is just the first step in creating a new minimum wage standard. What kind of socialist agreement is Trump and his party pushing through? Who benefits?

when will NYTIMES headline writers catch up to an article's content; a persistent dis-service if not deceit. the comments section is becoming the most valuable part of the NYTIMES

This is all show, with no significant changes. Same old Trump tactic of seeing a problem where this is none, claiming that only he can fix it, doing nothing, claiming that he did, and his followers, who don’t read the details, think something wonderful happened because he says it did.

"Another option is to stop selling those noncompliant vehicles in the United States. Some small cars are already set to go away. With American consumers flocking to roomier sport utility vehicles, Ford will stop selling the Fiesta, Fusion and other sedans in its home market." In other words, the Tradewreck doesn't even resolve the real problem: that it won't mean much because lots of Americans have decided to become consumers instead of people and guzzle gas again—well-timed now that the dotard is representing the citizens of Philadelphia, Mississippi, not Paris or anywhere else a fossil-burner climate attack will hurt. Now you'll have the job and car you need to afford that beach home in 10 years, and not be able to live in it either. MAGA!

Just read the last two paragraphs. Such winning! Couple hundred thousand fewer jobs, million plus fewer autos manufactured, costing $1-$4000 more each.

Automakers aren't off the hook just yet. Canada isn't on board. If they don't go along with this proposal, American auto workers will be punished the most. The tariffs and the loss of Canadian made auto parts will be a blow to the industry.

Trump is s duplicitous racist misogynistic politician who will do and say anything that promotes himself.

Remember when Trump's base in Ohio and Michigan did not even want an auto industry? They were happy to see GM and Chrysler fail.

I always thought the GOP was against managed capitalism. Now that Trump has set $16 wage floor for auto assembly in Mexico perhaps reporters could start asking GOP Senators if this applies to all US workers in both auto parts and assembly. It may surprise some readers but there are some workers at US auto parts makers that do not receive $16 but instead from 12.50 to 15. Some workers are so called "temps" employed by manpower companies to work at parts suppliers. The Times should do a story on how many US workers in auto parts and assembly receive less than $16. This is especially prevalent in the tier of Southern states.

Please read the Transpacific Treaty - it had exactly the same provisions as Trump now negotiated with NAFTA. He replaced NAFTA with TPP. It clearly had requirements for 75% content, stronger rules on Digital commerce and protection for American workers.

"These terms will force automakers to buy more parts made in the United States — and possibly Canada." The 75% content rule applies to parts made in North America, that includes Mexico, which is the "go to" place for low cost parts for the North American auto and truck industry. US, European and Asian automakers have invested heavily in Mexico parts suppliers since the beginning of NAFTA. While Trump claims that NAFTA was the worst trade deal ever, this agreement with Mexico actually builds on the most successful feature of NAFTA, which was to create a North American supply chain to compete with Asian and European imports of vehicles and parts. Some smaller car production will come back to the US and Canada, in more highly automated plants. And consumers will pay more for cars. Europe is dangling a tariff-free offer in front of Trump. Once he bites, they will insist on including their light trucks, which still have a 25% US tariff. This will be followed quickly by screams from US light truck makers.

Perhaps this is a good thing down the road. Bill Clinton originally passed NAFTA after it was drawn up by the George H Bush administration. Trump is, oddly, doing what many Republicans hate; in this case actually defending American factory workers like an old school Democrat. Thousands of jobs moved to Mexico which has cheaper labor and a lower standard of living; Canada not so much so his issues with Canada are perplexing. Is this long supply chain distance transportation of products sustainable in the long haul where energy consumption is a concern in a warming world? Perhaps it is time that we do think more locally. It will help keep all that "big beautiful coal" in the ground, right where it needs to be, and create more jobs that pay a little better than those in the service sector.

it is so refreshing to see a well-seasoned businessman that loves America with decades of negotiating experience as President. Trump keeps getting better deals for all Americans of all colors and all races.

Let's step back from the minutiae for a moment and look at the big picture. 1> Ford seems to be on the verge of abandoning the passenger car market and MULTI-nationals such as Volvo and Honda and Toyota are stepping in to fill the gap. 2> Advances in foreign car technology, fuel efficiency, and popularity continue to put non-American brands behind the curve in market share. 3>Prices for autos and are increasing while American labor gets stiffed with no real wage increases. American now 'lease' cars.. (the real concept is RENT) < We're becoming a rental, asset-less, economy >The Trump team comes up with an admitted minor success that turns out to be window dressing... < in the LONG term. >Interest rates are going up on mortgages. That will increase the pain of those who are borderline to poverty _ a larger factor than that of buying a new automobile or truck. > A moderately sizable portion of the Trump base will recognize this in the next two years and #45 is out in 2020... > Mind you, the current DNC doesn't have a clue either...

And Trump will pound his chest about the great deal he made. Typical Trump smoke and mirrors.

“The main take away so far is there is no giant influx of jobs coming into the U.S.,” said Kristin Dziczek, vice president for industry, labor and economics at the Center for Automotive Research in Ann Arbor, Mich. “In some ways,” said Charlie Chesbrough, a senior economist at Cox Automotive, the new trade rules amount to “a solution in search of a problem.” The problem has, of course, arrived: our great president invents a fake problem and disrupts millions of lives for no sensible reason. But we are not distracted: we all know the real problem.

Trump costs the US money. He does not make money net for our economy. He is the most cost heavy President in decades. The sooner more people recognize that, the sooner the votes will turn against the GOP and Trump’s following will fall away. It is simple math, addition and subtraction. Trump is almost entirely about adding expense. He is not a sound businessman. He is a churn and burn type of operator.

The majority of cars made in Mexico are sold in the US. So American’s will pay more to buy a car, sounds like a great deal.

So, in other words, the sky is not falling as many predicted. The Art of the Deal works. Great job Mr. President.

Poor Canada. Even ordinarily, Canada has no leverage. It is 1/10th the size of the US, doesn't pay the 2% NATO target and relies on the US for defense (Canada barely has any functioning warships/submarines that can operate in the Artic and the US is the only reason why Russia hasn't conquered Canada's North). And then comes Trump, a multi-billionaire hardnosed negotiator, who chooses to turn his fire to Canada. Poor Canada indeed. By coming up with a side deal with Mexico, Trump has Canada between a rock and a hard place. It doesn't help that Canada has such rookie negotiators in Trudeau and Freeland, who needlessly provoke Trump at every turn. Freeland especially. They should have taken a page from President Macron. Or taken S.Korea's approach. Trump should further turn the screws (announcing tariffs / announcing end of NAFTA) before he agrees to a deal with Canada - It's not nice but he has nothing to lose, and he's a shark looking for the best deal for America.

Remember Trump was against a bailout to save the car industry- hypocrites all.

Thing is NAFTA only has three members: with three bilateral deals you already have one NAFTA (USA-Canada, USA-Mexico, Canada-Mexico). The USA has already stricken a deal with Mexico and will do the same with Canada now. It is only a matter of time before Canada strikes a deal with Mexico. In other words, Trump basically kicked NAFTA out through the front door only to readmit it through the back door.

The article encapsulates Trump's tariffs perfectly: "a solution in search of a problem". The President ginned up this nationalistic fervor regarding NAFTA and other trade agreements that ostensibly were helping some political, global class at the expense of common Americans, to win an election. Now we see the impact, revealed at the articles close: a net los of jobs and an overall increase in price of both domestic and imported cars. One can conclude a few things. One, beyond making bombastic speeches about trade, President Trump ironically, or maybe appropriately, does not comprehend the complexities in global trade at all. He seems mired in some 18th Century analysis of trade, when mercantilism and the zero-sum game was in effect. Two, the very people in Michigan and other Midwestern states who voted for him will ultimately pay in overall, industry job loss. Three, globalization is not quite the boogey man Trump and his cabal have alleged for so long.

One barrier to the agreement with Canada is the sunset clause, which gives the three countries the option to pull out after a few years. Reportedly, the deal between the US and Mexico says that every six years, they would extend the agreement by 16. ?? An indication of the close attention to detail of the Trump administration...

Forcing Mexico to pay $16 an hour to a small number of autoworker is absurd and not enforceable. There are many different ways to count "local content" and that will be difficult to enforce also. By attacking US car production in Mexico, Trump is handing a big gift to Asian automakers. In 7 years 50% of all new cars will be electric or electric hybrid and the Big Three US automakers will be playing catch up. Ford is getting out of the sedan business and hanging its hope on gas-hog pickup trucks and monster SUVs....they will be bankrupt in 7 years- not because of Mexican plants but because of bad management decisions and shoddy products. Trump's new NAFTA is a nothing burger.

The legacy of Trump's economic policies is going to be, "be happy, think how much worse he COULD have made things."

So, a few minor tweaks to the “worst trade deal ever made” will now bring us the greatest deal in history.

"Manufacturers have added more than 300,000 jobs since 2009, when General Motors and Chrysler needed a government bailout to survive." There would have been far more jobs added had Obama added anti-off shoring language to the bailout agreement. Immediately after the bailout was announced, GM transferred more production to Mexico. If the Democrats had focused on pro-worker policies like the one I mentioned above, maybe a large portion of the working class wouldn't have abandoned the party and voted Trump in. The Dem party bosses and their loyal media still haven't learned this lesson - they still poopoo progressives in their own party.

Despite best efforts to paint these moves as no big breakthrough and/or happening anyway, I’m glad they are being spelled out and formalized, especially the higher wages. Without this they are subject to changes that don’t protect American workers as well. Better to have locked in the gains to Americans.

“In some ways,” said Charlie Chesbrough, a senior economist at Cox Automotive, the new trade rules amount to “a solution in search of a problem.” typical trump. declare a crisis, stir everyone up, let things go back to more or less normal and declare a personal victory.