Contested State Michigan Declares Revival of the 'Car Industry'
Amid Controversy Over Detroit Derogation
Former U.S. President and Republican presidential candidate Donald Trump has announced that if he wins the November election, he will renegotiate the United States-Mexico-Canada Agreement (USMCA). Through this, he plans to impose large-scale tariffs to prevent Chinese cars produced in Mexico from bypassing the existing high tariff barriers and entering the U.S.
Trump Uses Tariffs to "Protect U.S. from Threat of Chinese Cars"
On the 10th (local time), during a speech at the Detroit Economic Club in Detroit, Michigan, former President Trump stated, "Upon taking office, I will notify Mexico and Canada to invoke the USMCA’s sixth-year renegotiation clause." He pointed out that Chinese companies are currently trying to produce cars in Mexico and sell them to the U.S., adding, "That will not happen. I will impose whatever tariffs are necessary?100%, 200%, 1000%?to stop it."
Under the current USMCA, if certain criteria are met, tariffs are not imposed on vehicles produced in Mexico. When news emerged that Chinese automakers such as BYD were planning to establish manufacturing plants in Mexico, concerns arose within and outside the industry that low-cost Chinese cars using Mexico as a 'tariff haven' could flood the U.S. market. In response, the U.S. Congress has introduced legislation to impose a 125% tariff on cars produced by Chinese automakers regardless of the manufacturing location.
Former President Trump said, "I will continue the efforts I made during my first term to protect the U.S. from the threat of Chinese cars," adding, "I will ban autonomous vehicles made in China and other countries." He explained that this is both an economic security and national security issue.
Additionally, as part of his tax cut pledge, he plans to promote a measure to fully deduct interest on car loans. He mentioned that due to the policy failures of the Joe Biden administration, the cost of purchasing cars for American families has skyrocketed, claiming, "(With car loan interest deductions) millions of American families will be able to own cars at dramatically lower prices." However, the Wall Street Journal (WSJ) noted that contrary to Trump’s claims of increased car production, the effect may be limited and could be offset by the impact of the 'Trump tariffs.'
Targeting Swing State Votes... Controversy Over 'Belittling Detroit'
Former President Trump’s emphasis on reviving the auto industry in Detroit, the heart of the U.S. automotive sector, is interpreted as an effort to court votes in the swing state of Michigan ahead of the November election. Trump reiterated, "My goal is to see American auto manufacturing grow beyond its heyday," adding, "Detroit and Michigan are at the center of that." He also raised his voice, saying that if he wins the election, the U.S. auto industry will experience a renaissance and the 'nightmare' for auto industry workers will end.
According to the FiveThirtyEight polling average, Trump currently trails Democratic vice presidential candidate Kamala Harris by about 1 percentage point in Michigan. A recently released Emerson College poll showed the two candidates tied in Michigan. With less than a month remaining until the election, the swing state vote is becoming increasingly crucial. Politico analyzed that "increasing voter turnout in Detroit is a key factor in winning Michigan."
However, Trump’s approximately two-hour speech also sparked controversy over belittling Detroit. In attacking his rival Harris, he said, "If she were president, the entire country would become like Detroit," adding, "You would be a complete mess," which drew criticism. Early in the speech, he referred to China as a developing country, saying, "We are also a developing nation. Look at Detroit. Detroit is more of a developing area than most parts of China." In response, Mike Duggan, the Democratic mayor of Detroit, cited reductions in crime rates and population growth, stating, "We achieved all this without Trump’s help." Michigan Governor Gretchen Whitmer also expressed displeasure, saying, "Don’t even mention Detroit."
Additionally, during the speech, Trump reiterated his friendly ties with North Korean leader Kim Jong-un, saying, "We got along well." He also mentioned the Abraham Accords signed during his administration, stating, "If my name were Barack Obama, I would have won a Nobel Prize."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
