The real problem with American manufacturing isn’t other countries’ trade barriers, but all the regulations and restrictions imposed by the U.S. government. From Eric Peters at ericpetersautos.com:
Hyundai – which also owns Kia and Genesis, the Korean automaker’s luxury-line – just announced the other day that it will be investing $20 billion in manufacturing operations in the United States, including a new steel plant in Louisiana that will reportedly employ 1,500 Americans.
This is huge – even if President Trump didn’t use one of his favorite words to say so.
But is it on account of his tariffs?
Naturally, the president is saying yes.
“This investment is a clear demonstration that tariffs very strongly work,” Trump said. “And I hope other things also, but the tariffs are bringing them in at levels that have not been witnessed.”
But that’s dubious given Hyundai had probably been planning its investment for some time before the president announced his plan to tax – whoops, tariff – things such as cars manufactured outside America to the tune of 25 percent.
Which was after all only announced just a few weeks ago.
Decisions involving billions tend to be made carefully and with the long-range scheme of things in mind. More than likely, Hyundai – which is a major presence in America already – decided it made more sense for them to have some of their operations closer to hand rather than farther away.
I wish that Eric Peters was my auto mechanic.