Toyota Motor said will build a new plant in Baja, Mexico, to build Corolla cars for U.S. NO WAY! Build plant in U.S. or pay big border tax.— Donald J. Trump (@realDonaldTrump) January 5, 2017
Donald Trump keeps on Tweeting against US carmakers, probably intending to take credit after some like Ford, favour expanding production in the US than in Mexico... despite that responding to the market shifting its preferences backs to SUV (built in USA) instead of compact cars (mostly Made in Mexico). And Donald, the word is "tariff", not "border tax".
Toyota's Mexican Corolla plant was taking production from Ontario, not the US. Trump is now protecting Canadian jobs https://t.co/EFjhgTfg9M— Bob Bryan (@RobertBryan4) January 5, 2017
Or in the case of Toyota, complaining for they making more Corollas in Mexico, despite that production coming instead of Canadian and not US manufacturing. All this is not only unfair for US car companies, and Mexican jobs (isn't caring more for your own nationals jobs just chauvinism?), but it misses what really matters.
American car companies need Mexican production of cheaper cars and parts to be competitive in the World market. Mexico's lower wages are the only thing that allows GM, Ford and Chrysler to offer low margin products, that they need to be full-line manufacturers and that way using US plants to build millions of bigger, more expensive and higher margin vehicles, many of whose are also exported (to Mexico and China, among others).
If most Americans want to take their country out of global markets, it has to be done gradually and through Congress, not via Twitter. I think that is not the way to manage a modern economy, even less that of the US, that is perfectly placed to take advantage of its brainpower, radiating impressive new technologies to the rest of the world, instead of relying on putting stuff together.
Finally, I don't mean that no measure has to be taken at all. I think that there is a limit to opening markets and that efforts like the TPP can go way over what is convenient for industrialized economies. Again, that has to be democratically discussed.
And I'm also in favour of reciprocity for those countries that restrict Free Trade, or get into Dumping. China, for instance, puts high tariffs on US imports, and also requires foreign carmakers to form joint ventures to produce in the country. That is unfair, and accepting it when you have plenty of negotiating power (like the US) is idiotic.