NAFTA Sucks, says UAW in new video supporting tariffs
(WWJ) The United Auto Workers Union has found colorful way to express its support for tariffs.
“NAFTA sucks and it’s time to fix our broken trade laws,” said UAW President Shawn Fain, in a new video released by the union.
Trade is one area where the UAW and President Donald Trump find common ground. But, while Trump isn't mentioned once in the video, Fain harkened back to U.S. presidential candidate Ross Perot’s claims in 1992 that free trade would mean a “giant sucking sound” of jobs going from the U.S. to Mexico.
“My decision was made in that moment,” said Fain. “I saw the threat in my community. If corporations were allowed to kill good blue collar jobs in the Midwest to pay poverty wages to some poor Mexican worker, they were gonna do it.”
To clarify, NAFTA is now USMCA, which was negotiated by the first Trump administration. It's expected to be renegotiated at some point during the current Trump administration.
Next Wednesday, President Trump is expected to announce a wide-ranging set of tariffs.
This is something the auto industry has been campaigning against.
“We’re working very closely with the administration, and we’ve made our points very strongly, and made our point of view very clear,” said Ford executive chairman Bill Ford.
Carmakers say the auto industry is global in nature, that parts can cross the border several times before they go into a vehicle, and vehicles are made in the U.S., Canada and Mexico. Analysts say steep tariffs can add to carmakers costs, and those costs can be passed on to consumers.
“Look, we share his goal of strengthening the domestic auto industry,” said Ford. “We just have to make sure we get there in the right fashion.”
There are reports that auto companies could receive a number of exemptions from tariffs, when the president announces the final plan.
For UAW President Shawn Fain, who voted for Perot back in '92, tariffs are needed to support U.S. manufacturing.
“Some economists are trying to scare anyone, saying that the cost of tariffs will be passed on to working Americans,” said Fain, in the video released by the UAW. “But the cost of NAFTA was passed on to working Americans in the form of plant closures, deaths of despair, and economic devastation.”
Trump has said the threat of tariffs is already prompting carmakers to announce new investments in the U.S. He cited that as Hyundai announced plans to increase vehicles production in the U.S., with total investments of 21 billion dollars over the next four years.
Many analysts expect to hear more investment announcements soon, including possible investments from the Detroit Three. Meanwhile, Bill Ford says his company has always invested in America and will continue to do so.