I just heard on the radio that Mexico has the most free trade agreements. They work with something like 45 other countries. Anyways, lately I've been asking why Ford doesn't move their plants down south instead of to Mexico. I'd be ok with Ford moving from a union state to a non union state but they don't go to the American south. They go to Mexico. I just found out why.
If Ford ships a car to Europe it is slapped with a 10% tariff. If a car is shipped from Mexico to Europe it is not. So to manufacture a $45,000 car here in America and ship it to Europe would cost Ford an extra $4500. No shit Ford is moving plants to Mexico. We need to fix this. Free trade isn't fair.
Why Auto Makers Are Building New Factories in Mexico not the U.S. - WSJ
If Ford ships a car to Europe it is slapped with a 10% tariff. If a car is shipped from Mexico to Europe it is not. So to manufacture a $45,000 car here in America and ship it to Europe would cost Ford an extra $4500. No shit Ford is moving plants to Mexico. We need to fix this. Free trade isn't fair.
Why Auto Makers Are Building New Factories in Mexico not the U.S. - WSJ