This NPR Planet Money Indicator podcast episode discusses the impact of the threat of tariffs on the American auto industry in the 1980s. The co-hosts explain how the energy crisis and subsequent rise in gas prices created an opening for fuel-efficient Japanese cars, leading to American resentment and threats of tariffs. While President Reagan favored free trade, the threat of Congressional tariffs served as a bargaining chip, prompting Japanese automakers to voluntarily restrain exports and build plants in the U.S. The podcast contrasts this situation with the current climate, arguing that while the earlier trade war led to significant job creation, today's U.S. auto sector has far more to lose due to increased exports and automation, making the impact of current tariffs less likely to result in the same level of domestic plant construction and job creation.
