The survey by Nanos Research for The Globe and Mail found 43 per cent of respondents say they support the move, while 20 per cent say they somewhat support the measure
I think the tariff should come with a mandate to our domestic car manufacturers. They should have to produce an EV under some cost within a certain amount of time or they are going to cancel the tariff.
In the 1980s, faced with a crisis of their own making, Harley went crying to Ronald Reagan for tariffs on imported bikes. Reagan, free-market champion that he was, obliged.
This resulted in
Harley getting a handicap, allowing them to keep doing what they were doing, selling uncompetitive and overpriced bikes and just prolonging the inevitable.
Because Harley didn’t have to try nor evolve, and because their bikes were overpriced and uncompetitive, their international sales, which were never great, dried up.
Honda et al, because they were at a cost disadvantage, had to make a better product for the same money, which they did. Basically every standard and cruiser product Yamaha, Kawasaki, Suzuki and especially Honda made rubbed Harley’s nose in it, notably the Gold Wing.
Because Harley didn’t have to try, while the JDM makes had to try extra hard and everything cost more, the motorcycle market as a whole collapsed
Again, because Harleys were not competitive but were anachronistic and could get away with it because of Mama Reagan, what few bikes did sell to new riders weren’t Harleys, and Harley didn’t bother to try new things, missing out on the adventure-bike boom and losing at least two generations of street-bike riders.
Basically, it set Harley up for failure and nutured mediocrity.
Tariffs, if they don’t come with government pressure on the industry being protected, are basically corporate welfare that helps in the short term but results in long-term pain.
EVs will be similar. Protecting the North American industry in the short term isn’t necessarily a bad thing, but it would require the American and Canadian government to bust the balls of Ford, GM and Stellantis, as well as the domestic-produced imports: you get the tariffs and you get tax breaks, but in turn you have three years to produce a cheap, capable EV or, eg, we’ll make it happen without you.
Our governments won’t do this because they’re neoliberal chickenshits who lost their spine forty years ago.
The result will be EVs that are too expensive, sold to the most profitable niche domestically, with collapsing sales abroad. Which is what we have now, and it will get worse if we insulate lazy OEMs from market pressure.
China’s hands are not clean, but one thing they have done is invest in the long term. The North American OEMs resolutely refuse to do that, and tariffs would make that situation worse.
I think the tariff should come with a mandate to our domestic car manufacturers. They should have to produce an EV under some cost within a certain amount of time or they are going to cancel the tariff.
That’s not at all a bad idea; it certainly avoids Harley Davidson syndrome, which is what we’re looking down the tubes of right now.
What does the Harley Davidson syndrome refers to?
In the 1980s, faced with a crisis of their own making, Harley went crying to Ronald Reagan for tariffs on imported bikes. Reagan, free-market champion that he was, obliged.
This resulted in
Basically, it set Harley up for failure and nutured mediocrity.
Tariffs, if they don’t come with government pressure on the industry being protected, are basically corporate welfare that helps in the short term but results in long-term pain.
EVs will be similar. Protecting the North American industry in the short term isn’t necessarily a bad thing, but it would require the American and Canadian government to bust the balls of Ford, GM and Stellantis, as well as the domestic-produced imports: you get the tariffs and you get tax breaks, but in turn you have three years to produce a cheap, capable EV or, eg, we’ll make it happen without you.
Our governments won’t do this because they’re neoliberal chickenshits who lost their spine forty years ago.
The result will be EVs that are too expensive, sold to the most profitable niche domestically, with collapsing sales abroad. Which is what we have now, and it will get worse if we insulate lazy OEMs from market pressure.
China’s hands are not clean, but one thing they have done is invest in the long term. The North American OEMs resolutely refuse to do that, and tariffs would make that situation worse.