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The Indicator from Planet Money

The old trade war that brought foreign carmakers to the U.S.

The Indicator from Planet Money

NPR

Business

4.79.2K Ratings

🗓️ 21 May 2025

⏱️ 9 minutes

🧾️ Download transcript

Summary

President Donald Trump wants more products made in America, and he's not afraid of a few trade wars to make it happen. Back in the 80s, a different trade dispute brought new manufacturing to the U.S. Today on the show, how former President Ronald Reagan used the threat of trade protectionism to bring car-making stateside, and why the same strategy might not work today.

Related episodes:
The tensions behind the sale of U.S. Steel (Apple / Spotify)
Tariffs: What are they good for? (Apple / Spotify)

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Transcript

Click on a timestamp to play from that location

0:00.0

NPR.

0:02.0

When it comes to Made in America, we actually make a lot of cars and trucks here, like the Ford F-150, the Tesla Model 3.

0:20.0

And the Honda Accord, the Toyota Camry, the Volkswagen Atlas.

0:24.8

Now, that might not sound right, but it's true.

0:27.7

These Japanese and German automakers set up shop here in the U.S. a few decades ago.

0:32.7

Foreign carmakers like Toyota and Mercedes have actually opened more than 20 factories in the U.S. over the last

0:38.7

45 years. Yeah, and the reason many of those plants opened up in the U.S. in the first place

0:43.5

is not because of free trade, or at least not free trade alone. They came to America because

0:48.9

of a trade war that happened more than 40 years ago.

0:56.6

This is the indicator from Planet Money.

1:00.5

I'm Waylon Wong here with friend of the show, Stephen Besaha, from the Gulf States Newsroom.

1:01.8

Good to be with you, Whelan.

1:03.1

And on today's show, President Donald Trump wants more products made in America.

1:08.3

40 years ago, a different trade war made that happen.

1:11.6

So we're going back in time to learn about how that trade war played a key part in bringing foreign car plans to the U.S.

1:19.6

And why that's probably not going to happen this time.

1:22.6

And where we're going, we don't need roads.

1:25.6

D-da-da-da-da-da-da-da-da-da-da-da-da-da-da-da-ta-ta-ta.

1:30.0

Perfect rendition.

1:31.6

I love that movie.

1:32.5

So good.

1:35.3

Let us zoom back to the 70s.

...

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