Quote:
Originally Posted by MrIcky
This is fact-checking only, not fueling a debate. My understanding is that the Japanese are on a zero for zero tariff system in which there are no tariffs imposed because the car is sourced from America (I believe Japan has the same zero for zero recipricol with Europe as well).
However, Japan imposes taxes based on an engine-size formula where vehicles are taxed increasingly based on their engine size. Most American cars imported to Japan are de facto taxed as luxury because American cars typically run a full liter higher in the same vehicle footprint?
You have the basic OP question, but then we have drifts into side arguments that are WAY more complicated then the answers here. For instance there is a poll on this site where we say what if the Camaro was a V6 only. Well if the performance Camaro was a turbo'd 6 or something, the Japanese market would likely save about $5,000 per vehicle. That means our market demands are restricting our ability to be competitive overseas. You (not you specifically, but generically) being unwilling to change may be part of our issues. I believe much of Europe does the same tax by engine size scheme.
Also, this directly bears on the value of the dollar. America was actively trying to devalue the dollar against the Euro and Yen to increase American Exports and there was a public outcry and people started buying gold. It's all in the tank now so it doesn't matter.
Again, I'm not trying to make a fight here- I'm just trying to get it out that there's a lot more to some of these arguments then people realize.
But yes, buying American is a factor in my decision making process.
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I didn't specifically investigate the Japanese tariff system, so this is good fact-checking.
I can, however, safely say that the EU imposes what political scientists call "tariff walls" around its territory. In effect, the outsiders of the EU pays tariffs while insiders pay no tariffs at all. I can't specifically recall if this includes only euro-using countries, but I'm certain that countries in the EU that do not use the euro would still be better off than the US when it comes to European tariffs.