December 04, 2008
– Comments (3)
Sarkozy Unveils Stimulus Package
"If our American friends are obliged to do more for their own industry, I won't allow the French automobile industry to be put at a disadvantage compared to the competition," he said. Would this be what we used to call a TRADE or Price war with tariff? If so what can we call this. The nations trade war bail out? Can you come up with some other ones?
Trade war? Who's fighting a trade war?
Truck/auto import tariffs.
USA - 2.5% cars/trucks. Australia - 15%cars 10%trucks. EU 10% up to 18%. Korea - 8% tarrif, 4% other taxes, total 12%. China - 28% -25%. Brazil - 35%.
Those figures were the best I could find and are 2006. The USA may very well apply import tarrifs somewhere else to make up the difference.
Note: The tarrif is 0 between NAFTA partners (Thats Mex, Can, and USA, Sarah).
Now I'm not saying this is the only problem facing the domestic car manufacturers but when a $35,000 Explorer costs a Brazilian $47,000 you are going to sell a few less cars in Brazil. And I know that disadvantage is equal between all carmakers unless Brazil gives favorable terms to someone else (which i do not believe is true) but it is still that many less people who can afford a 35k car.
Hmm... If they'd give me a thousand Euros for every old car I scrapped, I'd scrap most of mine and buy a brand new car with the money!
What an idiotic idea.