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A 25% tariff doesn't rebuild what 30 years of trade policy took apart

published · May 1, 8:18 PM · $0.00 total · published 56d ago

Plan (drafter input)

planner trade_and_manufacturing

EU car tariffs just jumped from 15% to 25%. Mike's angle: the whole conversation about tariffs treats American factory workers as a rounding error. The EU built an industrial policy that protects its automakers. We spent 30 years telling ours to compete on price against subsidized foreign labor. Now a tariff is supposed to fix it. Maybe. But the plants don't come back in a quarter. The workers who left those towns didn't wait. Button: you can't negotiate your way back to 2002.

Direct follow-up on the EU auto tariff news, different angle from the previous EU car tariff hero_text — that one covered the math changing; this one covers what the math can't fix. Stays on-persona.

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Body

Trump just announced EU cars and trucks go from 15% to 25% tariff starting next week. His argument: the EU isn't holding up its end of the deal struck back in July. His offer: build the cars in America and there's no tariff at all. Over a hundred billion in new plant investment already announced. That part's real.

Here's the thing. The tariff is a lever. It might work. But the conversation around it keeps treating the workers as a rounding error. The EU spent decades building an industrial policy. Coordinated investment, protected margins, subsidized labor costs. We spent thirty years telling our automakers to compete on price against that — then acted surprised when the plants in Ohio and Michigan and Indiana closed. You don't close a parts plant and reopen it because the tariff number changed. The people who worked those lines didn't wait around. They retrained, or they didn't, or they left. The towns absorbed it, or they didn't.

A tariff is a signal. It says: the rules are changing, bring production back. That's not nothing. But a signal sent in 2025 is thirty years late to the conversation. Ford and GM and Stellantis will do the math on new U.S. investment. Some plants will get built. That's worth something. You still can't negotiate your way back to 2002.

Caption

Tariffs can change incentives. They can't reverse thirty years of industrial policy in a quarter. #trade #manufacturing #economy #auto

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    May 1, 8:18 PM

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