Trump Administration Mulls Stiffer Rules For Imported Cars

[edpc]

By David Shepardson and Steve Holland
Reuters April 7, 2018

WASHINGTON (Reuters) - The Trump administration is considering ways to require imported automobiles to meet stricter environmental standards in order to protect U.S. carmakers, according to two sources familiar with the administration's thinking.

White House spokeswoman Sarah Sanders said President Donald Trump "will promote free, fair and reciprocal trade practices to grow the U.S. economy and continue to (bring) jobs and manufacturers back to the U.S.”

Two U.S. automotive executives said Friday they believed the idea had been floated in White House talks last week by Commerce Secretary Wilbur Ross, but said the auto industry had not asked for the changes or backed them.

A Commerce Department spokesman referred a Reuters request for comment back to the White House, which has not responded.

https://finance.yahoo.com/news/trump-administration-mulls-stiffer-rules-imported-cars-082901196--finance.html

[edpc]

The Toyota Tundra (TX), Honda Odyssey (AL), and Toyota Camry (KY) are all made in red states, with 75% US parts.

[Concerned]

So the Trump Administration wants to artificially raise the price consumers pay for foreign-built cars imported into the US by requiring them to meet more stringent environmental standards than US-built cars.     I suspect this wacky idea will not be implemented.

"The Trump administration is pursuing ways to protect domestic vehicle manufacturing by forcing imported cars to meet stricter environmental rules when entering the country, according to senior administration and industry officials, a move that would make imports more expensive.

<snip>

Either option would likely raise the costs for foreign cars sold in the U.S., making domestically produced cars cheaper by comparison. This effect of raising prices on consumers is common to most nontariff barriers, which seek to penalize imports through measures other than tariffs or duties."

https://www.marketwatch.com/story/trump-exploring-stricter-environmental-rules-for-imported-cars-as-nontariff-barrier-2018-04-06?rss=1&siteid=rss

[edpc]

I suspect this wacky idea will not be implemented.

Things have a way of getting out as leaks or public comments as trial balloons.  When they receive pushback, they're dismissed by the admin as discussion or fake news.

[kevindavis007]

WTF???

[Free Vulcan]

So the Trump Administration wants to artificially raise the price consumers pay for foreign-built cars imported into the US by requiring them to meet more stringent environmental standards than US-built cars.     I suspect this wacky idea will not be implemented.

"The Trump administration is pursuing ways to protect domestic vehicle manufacturing by forcing imported cars to meet stricter environmental rules when entering the country, according to senior administration and industry officials, a move that would make imports more expensive.

<snip>

Either option would likely raise the costs for foreign cars sold in the U.S., making domestically produced cars cheaper by comparison. This effect of raising prices on consumers is common to most nontariff barriers, which seek to penalize imports through measures other than tariffs or duties."

https://www.marketwatch.com/story/trump-exploring-stricter-environmental-rules-for-imported-cars-as-nontariff-barrier-2018-04-06?rss=1&siteid=rss

Why should they get a pass while our domestics do not?

[Concerned]

Why should they get a pass while our domestics do not?

They aren't getting a pass.  This proposal is putting MORE stringent rules on imports than on our cars.  Why should there be two sets of rules?

[corbe]

   Brings back memories of obummer going after Toyota (Sudden Acceleration) to protect his union buddies at GM.

[Free Vulcan]

They aren't getting a pass.  This proposal is putting MORE stringent rules on imports than on our cars.  Why should there be two sets of rules?

They're actually just talking about bringing them in line with what domestics have to meet now.

[ABX]

Item number 145,567,899 the government has no business being involved in.

[Concerned]

They're actually just talking about bringing them in line with what domestics have to meet now.

That's not what they are talking about at all.  They are talking about putting "non-tariff barriers" in place.  This is a well known practice whereby some countries do things such as requiring imports to adhere to a more stringent set of standards in order to increase the cost of those imports when compared with domestically manufactured items.  It sounds as though you and I are in agreement that the same set of environmental standards should apply to all cars whether manufactured domestically or internationally.   

"Imported vehicles may be held to higher environmental standards than cars built in the U.S. in the future, reports the Wall Street Journal. Having just rolled back the higher pollution and fuel economy targets implemented by the Obama administration, it's rather ironic to cite environmental concerns as a reason to implement more stringent requirements for imported vehicles. But that's exactly what the Trump administration has done.

It's not really about protecting the environment, but to create a "non-tariff barrier" against foreign competition. Rather than putting a tax on imported goods such as steel and aluminum, the higher standards will require manufacturers to spend more money and jump through more legal hoops to sell their vehicles alongside American-made vehicles built without those handicaps. Imported cars would be more expensive as a result, giving more affordable domestic cars a market advantage."

http://www.thedrive.com/news/19950/stricter-environmental-standards-on-imported-vehicles-to-protect-domestic-production-possible

[Concerned]

Another description of this "non-tariff barrier" proposal here:

"The rules could effectively require more expensive technology on some foreign light vehicles or subject those cars to more expensive hurdles that can be billed to the manufacturer or importer, the Journal said. The costs, if implemented, would likely be passed on to consumers.

The so-called “nontariff barrier” -- a protectionist strategy the U.S. has long condemned in other countries, notably Japan and South Korea -- is designed to reduce the relative cost of vehicles manufactured in the U.S. by American workers, administration officials told the Journal.

<snip>

“The possibility of holding vehicles built outside the United States to stricter environmental standards than those produced domestically is a direct threat to America’s free market. It takes the car buying decision, one of the most important and expensive choices American families face today, and allows the government to weigh in," said Cody Lusk,  president of the American International Automobile Dealers Association. "This kind of non-tariff barrier is a tax on consumers and will absolutely result in higher priced vehicles and more limited choices."

http://www.autonews.com/article/20180406/OEM/180409749/trump-seeks-stiffer-emissions-rules-for-u.s.-light-vehicle-imports

[edpc]

This is apparently a brilliant Wilbur Ross idea.  Some interesting things about Ross:  He specializes in failed companies, worked with Trump on his casinos, and was a registered Democrat until late 2016.

https://www.famousbirthsdeaths.com/wilbur-ross-bio-net-worth-facts/

[Free Vulcan]

That's not what they are talking about at all.  They are talking about putting "non-tariff barriers" in place.  This is a well known practice whereby some countries do things such as requiring imports to adhere to a more stringent set of standards in order to increase the cost of those imports when compared with domestically manufactured items.  It sounds as though you and I are in agreement that the same set of environmental standards should apply to all cars whether manufactured domestically or internationally.   

"Imported vehicles may be held to higher environmental standards than cars built in the U.S. in the future, reports the Wall Street Journal. Having just rolled back the higher pollution and fuel economy targets implemented by the Obama administration, it's rather ironic to cite environmental concerns as a reason to implement more stringent requirements for imported vehicles. But that's exactly what the Trump administration has done.

It's not really about protecting the environment, but to create a "non-tariff barrier" against foreign competition. Rather than putting a tax on imported goods such as steel and aluminum, the higher standards will require manufacturers to spend more money and jump through more legal hoops to sell their vehicles alongside American-made vehicles built without those handicaps. Imported cars would be more expensive as a result, giving more affordable domestic cars a market advantage."

http://www.thedrive.com/news/19950/stricter-environmental-standards-on-imported-vehicles-to-protect-domestic-production-possible

If that's what's truly going on here, then no I don't support that. The standard should be the standard across the board, not picking winners and losers.

The other reason is -  I don't want things to get distracted from the regulatory standard itself, which IMO is unrealistic and pushed by enviro nutbags, but is too far ahead of the existing tech to get that mileage without sacrificing the performance in situations where you need it.

[edpc]

If that's what's truly going on here, then no I don't support that. The standard should be the standard across the board, not picking winners and losers.

Yeah, it kind of undercuts their ‘level playing field’ argument.

[libertybele]

WTF???

Yeppers, that was pretty much my reaction.