With the recent tension between the United States and China regarding trade deals and tariffs there has been questions raised among many as to how tariffs will affect various industries including, but not limited to, the technology and auto industries.
Cars.com recently published an article that showed us the “Most American” cars produced in 2019. Basically, it “ranks vehicles based on where they are assembled, the origin of a car’s parts and the number of Americans a company employs in the U.S.” – CNBC
According to the article, Japanese automakers Toyota and Honda produced 9 of the 15 top most “American” cars. This statistic makes it seem as if other countries are more inclined to invest in the United States than the automakers that are American companies. Although this only counts the top 15 – and there definitely are many American automakers that still manufacture in the United States – it gives consumers an insight into which companies are truly helping the local economy.
This isn’t a hate session on American automakers, though. The United States’ based Fiat-Chrysler came in clutch by landing the number 1 spot in the study. The Jeep Cherokee, built in Belvidere, Illinois was ranked the “Most American” car giving Fiat-Chrysler the award for the third straight year.
Some notable contributors for the Americans were General Motors (4 in the top 15) and Ford who made it onto the list with the F-150 again, landing lower on the list than the previous year.
All of these numbers could really change up over the next couple of years. With the tensions between the United States and China and the upcoming United States – Mexico – Canada Trade Agreement it is very possible that production of cars leaves the United States and heads to Mexico because of tariffs between the United States and Mexico being released, making the costs go down.
On top of companies possibly leaving the United States after being established here, it is possible that Japan could pull out of the United States. President Trump has threatened to impose tariffs on Japanese automotive imports which has caused Toyota executives to feel unwelcome in the United States and that their contributions in the U.S. are not valued.
In the end, sending jobs outside of the United States might make vehicles a little cheaper than them being produced domestically, but it would also take thousands of jobs away from the United States. If the President imposes the tariffs on Japan then it would be very likely that Japan would have to pull its investments outside of the U.S., again taking away jobs, but also increasing the prices of the cars because of an increased tax on their importing of Japanese products. What matters most to people changes depending on what they value so jobs leaving the United States might not mean anything to someone looking for a deal, while someone who values American made products might not mind spending a little more money on their car.
We, as consumers, have the ability to control the market. Public demand controls everything, so let your buying habits reflect how you feel and let your support be known to the automotive companies.
