Damage to U.S. Manufacturers
Although U.S. manufacturers are doing well in the current economy, they could be doing even better without illegal dumping. Consider this: would you buy a stripped-down Ford Taurus for $27,600 or a luxurious Mercedes CLA 250 for $29,900? Or a Lincoln MKS for $40,425? The Lincoln MKS is basically the Ford Taurus in a luxury package, the same car dressed up with leather upholstery and electronic gadgets.
Similarly, the Cadillac ATS, very close in size to the Mercedes CLA 250, has a sticker price of $33,000. It is comparable in many ways to the Mercedes but at a $3,000 premium many buyers would opt for the German vehicle. Price does matter.
Who Can Do Something About This?
Parties injured by illegal dumping can file a complaint with the Commerce Department and the International Trade Commission in Washington, D.C. That means manufacturers like General Motors and Ford could file a complaint. They may be reluctant to do so because it will make them look like complainers that are unable to compete.
A more likely complainant would be a trade union injured by this illegal dumping. This would include the United Auto Workers and the United Steelworkers union. The autoworkers are injured because they are making fewer cars in the United States as a result of the dumped Mercedes vehicles. The steelworkers are injured because imported Mercedes do not use U.S. steel.
The Obama administration is not likely to do anything unless and until someone files an unfair trade practices complaint.
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