Trump could take aim the 700,000 auto supplier jobs in Mexico by getting Congress to impose a tax on auto parts. But that would drive up the cost of the roughly 11 million cars that are built in the United States each year.
That's because there is no such thing as an all-American car. Every car built in the U.S. contains at least 25% worth of parts from outside the country. And Mexico is a major source of those parts.
Taxing Mexican parts could make U.S. cars more expensive. That would hurt car buyers, and, ultimately, U.S. auto jobs.
"It would raise prices, which in the short run lowers the quantity of vehicles being built here," said Dziczek.
Some of the best-selling U.S. vehicles have a large percentage of their parts made in Mexico.
Indeed, only about 63,000 of the 766,000 auto industry jobs in Mexico are devoted to assembling passenger cars and trucks -- just 8%.
So Trump's plan to tax cars coming from Mexico to the U.S. won't do much for jobs.
"Even if he's successful bringing back all the assembly line jobs, it's not that much," said Kristin Dziczek, director of the industry, labor & economics group at the Center for Automotive Research, a Michigan think tank.
from CNN money
Indeed, only about 63,000 of the 766,000 auto industry jobs in Mexico are devoted to assembling passenger cars and trucks -- just 8%.
So Trump's plan to tax cars coming from Mexico to the U.S. won't do much for jobs.
"Even if he's successful bringing back all the assembly line jobs, it's not that much," said Kristin Dziczek, director of the industry, labor & economics group at the Center for Automotive Research, a Michigan think tank.
That's because there is no such thing as an all-American car. Every car built in the U.S. contains at least 25% worth of parts from outside the country. And Mexico is a major source of those parts.
Taxing Mexican parts could make U.S. cars more expensive. That would hurt car buyers, and, ultimately, U.S. auto jobs.
"It would raise prices, which in the short run lowers the quantity of vehicles being built here," said Dziczek.
Some of the best-selling U.S. vehicles have a large percentage of their parts made in Mexico.
Indeed, only about 63,000 of the 766,000 auto industry jobs in Mexico are devoted to assembling passenger cars and trucks -- just 8%.
So Trump's plan to tax cars coming from Mexico to the U.S. won't do much for jobs.
"Even if he's successful bringing back all the assembly line jobs, it's not that much," said Kristin Dziczek, director of the industry, labor & economics group at the Center for Automotive Research, a Michigan think tank.
from CNN money
Indeed, only about 63,000 of the 766,000 auto industry jobs in Mexico are devoted to assembling passenger cars and trucks -- just 8%.
So Trump's plan to tax cars coming from Mexico to the U.S. won't do much for jobs.
"Even if he's successful bringing back all the assembly line jobs, it's not that much," said Kristin Dziczek, director of the industry, labor & economics group at the Center for Automotive Research, a Michigan think tank.
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