NAFTA's Legacy: A Disaster for American Workers

DETROIT, MI – In a new video, UAW President Shawn Fain shares his experience as a young electrician in Kokomo, Indiana, in 1992 and how trade policy won his vote in that presidential election. The lesson for working class politics today is clear: working people need an alternative to the free trade disaster that has wrecked blue collar communities across the country and driven a continental race to the bottom that has hurt American and Mexican autoworkers alike.

The UAW has called for a renegotiation of the United States-Mexico-Canada Agreement, which has not stopped the bleeding of good auto jobs from Michigan to Tennessee and beyond. The Trump Administration’s expected auto tariffs could be a step in the right direction towards ending the free trade disaster inaugurated by NAFTA thirty-three years ago.

Let’s look at what has happened since NAFTA passed. Over 90,000 manufacturing facilities have disappeared in the United States, wrecking communities, ripping families apart, and leaving workers on unemployment or struggling to survive on low-wage jobs. Every plant closure is a bomb dropped in working class communities. You can literally see the blast zones in Kokomo, Flint, St Louis, and beyond. The Big Three automakers alone have closed 65 facilities in the past 22 years. I would love to say today that things have changed, but as we’re talking right now, more work is being shipped out of the country, and more jobs are being lost or are in jeopardy of being lost.

Stellantis has laid off thousands of workers at Warren Truck while the trucks they use to build are being made in Mexico. John Deere, Mack Trucks, and many other companies are relocating work to Mexico right now, all in an effort to drive a race to the bottom. Economists and talking heads want to say that tariffs are bad for the economy. You know what’s bad for the economy? Letting corporations ship jobs to other countries where workers make $3 an hour so the company can sell a truck for $100,000 and pocket the savings. While American workers and Mexican workers scrape to get by.

Tell the workers who used to work at Lordstown, Ohio that our trade system is working. Tell it to workers at Romeo Engine. Or Baltimore Transmission. Or Cleveland Casting. Or Twin Cities Assembly. Or Oklahoma City Assembly. Janesville Assembly. Wilmington Assembly. Fredericksburg Powertrain. Or St. Louis Assembly. The list goes on and on. There isn’t a state in this country that hasn’t been devastated by the free trade disaster of the last thirty three years. The status quo is killing us.

Some economists are trying to scare anyone, saying that the cost of tariffs will be passed on to working Americans. But the cost of NAFTA was passed on to working Americans in the form of plant closures, deaths of despair, and economic devastation. We feel its effects every day. Free trade isn’t free. It’s a disaster. And it’s time to end it. The experts said NAFTA would help the working class. They were wrong. Ross Perot was right. NAFTA sucks and it’s time to fix our broken trade laws.

The Trump Administration’s proposed auto tariffs could have significant long-term economic and social consequences for North America, particularly for the automotive industry. Here are some potential impacts:

1. Economic Consequences:

- Increased Costs for Consumers: The proposed 25% tariff on imported vehicles and auto parts could lead to higher prices for consumers. This increased scrutiny and potential tariffs could drive up costs for manufacturers, which may be passed on to consumers.

- Shift in Production: The tariffs could incentivize automakers to shift production to the U.S. to avoid tariffs. This could lead to job growth in the U.S. auto industry but may also result in job losses in Canada and Mexico.

- Supply Chain Disruption: The automotive industry in North America is highly integrated, with parts and subassemblies crossing borders multiple times. Tariffs could disrupt these supply chains, leading to inefficiencies and increased costs.

2. Social Consequences:

- Job Losses/Gains: While the tariffs could lead to job gains in the U.S. auto industry, they could also result in job losses in Canada and Mexico. This wage differential could lead to job losses in Mexico if production shifts to the U.S.

- Potential for Retaliation: The tariffs could provoke retaliation from Canada and Mexico, leading to a trade war. This could have broader economic and social consequences, including job losses in other sectors and increased prices for consumers.

3. Influence on the Automotive Industry:

- Increased Domestic Production: The tariffs could lead to increased domestic production in the U.S., as automakers seek to avoid tariffs. This could make the U.S. auto industry more competitive globally.

- Shift in Investment: The tariffs could also lead to a shift in investment, with automakers investing more in the U.S. and less in Canada and Mexico. This could have long-term implications for the automotive industry in North America, including changes in market share and competitive dynamics.

- Potential for Innovation: The tariffs could also incentivize innovation, as automakers seek to reduce costs and improve efficiency to offset the impact of tariffs. This could lead to advancements in technology and manufacturing processes.