Importers are exporters, exporters are importers. Slapping tariffs on imports would hurt our most competitive firms
In today’s globally connected world with dynamic global supply chains for raw materials and inputs, and global marketplaces for final sales, it’s an economic fact of the modern world economy that: a) exporters are importers and b) importers are exporters. US firms buy inputs in a global marketplace that includes sourcing some of those inputs as imports from foreign suppliers and then those same firms often export and sell their finished goods in dozens, if not hundreds of countries. For example, according to The Economist, every $100 of goods we import from Mexico contains $40 of American goods that were exported to Mexico and are embedded within the products that return as imports. Likewise, the Wall Street Journal reports that on average, about half of the components and parts for all “US-made” cars by Ford, GM and Chrysler come from Mexico or other foreign sources. For the 2017 Chevy Cruz, it actually contains more foreign content (56%) than domestic content, and is therefore more of “foreign” car than an “American car” based on content. In fact, it’s Toyota and Honda, and not GM or Ford, that routinely dominate Cars.com American-Made Index year after year — those two Japanese automakers captured the top five places in 2016 for the most “American-made” cars. Therefore, in a world of global value chains and inter-connected world markets, Trump’s threat to slap 35% tariffs on imports from Mexico and other countries make little sense and would penalize the US manufacturers and their workers who use imported inputs, or who supply inputs to manufacturers in Mexico and elsewhere that often come back into the country as imports.
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Πηγή: American Enterprise Institute
