# Trump "Compels" Carmakers to Stay in the U.S.? **URL:** \ **Category:** Factual Questions\ **Created:** [January 24, 2017, 5:52pm UTC](https://boards.straightdope.com/t/trump-compels-carmakers-to-stay-in-the-u-s/778050 "2017-01-24T17:52:58Z")\ **Posts on this page:** 4\ **Page:** 2
**Author:** ![scr4](https://avatars.discourse-cdn.com/v4/letter/s/59ef9b/32.png) [@scr4](https://boards.straightdope.com/u/scr4)\ **Post date:** [January 25, 2017, 5:02am UTC](https://boards.straightdope.com/t/trump-compels-carmakers-to-stay-in-the-u-s/778050/21 "2017-01-25T05:02:00Z")
Just as a data point, here’s what happened when President Obama imposed an import duty on Chinese tires to try to “save” the US tire industry. From [WSJ blog](http://blogs.wsj.com/chinarealtime/2012/04/27/price-of-a-job-saved-by-china-tire-duties-nearly-1-million-report/): > [@](#): > > …But the result of slapping heavy duties on Chinese imports was a stiff increase in tire prices. The vast majority of the tires sold in place of Chinese tires were made in other foreign countries, the analysts say. > > In all, Americans spent $1.12 billion more than they otherwise would have on tires. Divide that by 1,200 jobs, and the cost is $936,000 per job. > > …But that’s not the end of the costs. The additional spending on tires – essentially the same effect as a tax – meant that Americans had $1.12 billion less to spend on other things. … ---
**Author:** ![John\_Mace](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/john_mace/32/185_2.png) [@John\_Mace](https://boards.straightdope.com/u/John_Mace)\ **Post date:** [January 25, 2017, 6:05am UTC](https://boards.straightdope.com/t/trump-compels-carmakers-to-stay-in-the-u-s/778050/22 "2017-01-25T06:05:08Z")
> [@DrDeth](#): > > Executive actions have a lot of power. But since the GOP does have a slim majority in both Houses, Prez Trump should not have any major issues with Congressional support. Republicans are generally against these types of tariffs, so it’s unclear they would just fall in line with Trump, especially in the Senate. ---
**Author:** ![md2000](https://avatars.discourse-cdn.com/v4/letter/m/73ab20/32.png) [@md2000](https://boards.straightdope.com/u/md2000)\ **Post date:** [January 25, 2017, 7:14am UTC](https://boards.straightdope.com/t/trump-compels-carmakers-to-stay-in-the-u-s/778050/23 "2017-01-25T07:14:45Z")
Does anyone remember that in the Good Old Days President Nixon one day announced a 10% duty on EVERYTHING coming into the USA to help prevent jobs from going overseas and reduce the swelling trade deficit. Not sure what authority he used to do that. ---
**Author:** ![Frankenstein\_Monster](https://avatars.discourse-cdn.com/v4/letter/f/ccd318/32.png) [@Frankenstein\_Monster](https://boards.straightdope.com/u/Frankenstein_Monster)\ **Post date:** [January 25, 2017, 10:10am UTC](https://boards.straightdope.com/t/trump-compels-carmakers-to-stay-in-the-u-s/778050/24 "2017-01-25T10:10:16Z")
> [@rbroome](#): > > He is going to make all these threats, get what he can get, declare victory and all his supporters will congratulate him for his success. Well yes, that’s my operative assumption. If only for political reasons. But I was wrong to think that Trump does not actually have any authority to do anything. > [@md2000](#): > > Does anyone remember that in the Good Old Days President Nixon one day announced a 10% duty on EVERYTHING coming into the USA to help prevent jobs from going overseas and reduce the swelling trade deficit. > > Not sure what authority he used to do that. Thank you! [The Nixon Shock](https://en.wikipedia.org/wiki/Nixon_shock#Event) > [@](#): > > 3.An import surcharge of 10 percent was set to ensure that American products would not be at a disadvantage because of the expected fluctuation in exchange rates. That doesn’t say what authority he used. But note that was in August 1971. Before there was any WTO or NAFTA. So it was just traditional executive authority for those times (as quoted earlier). Times may have changed a bit. [Previous page](https://boards.straightdope.com/t/trump-compels-carmakers-to-stay-in-the-u-s/778050.md?page=1)