Monday, March 28, 2016

Ford CEO Doesn't Like #Trump's Trade Plan

History reminds us that re-introducing tariffs, a policy intended to protect and restore balance/fairness in the game of global trade, is an extremely bad idea. American voters, generally irritated and tired of the status quo and diminishing standard of livings, are ready to listen to to what they view as decisive and difference making. Ever wonder why history repeats?

Headline: Ford CEO disses Trump’s trade plan

The idea of tightening trade rules to encourage more manufacturing in the United States obviously plays well with voters. Republican presidential front-runner Donald Trump, in particular, has found surprising success attacking trade deals such as the North American Free Trade Agreement while claiming, “We’re losing so much with Mexico and China,” because of U.S. trade deficits with those countries.

It makes for effective campaign rhetoric, but if Trump were ever to undo elements of NAFTA or impose punitive tariffs on Chinese products, it could cause havoc for a lot of American companies, and automakers in particular. “What’s important for our business going forward is we continue to open up our products to other markets,” Ford (F) CEO Mark Fields tells me in the video above. “Free and fair trade is really important. We have always supported every free-trade agreement since we’ve been in existence.”



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