but they export a large portion of the cars to bigger markets
Which at $AUD1 = $US0.5 was happening pretty successfully, and even at 0.75 (or 0.8 like now) was possible.
In the absence of significant tariffs
Tariffs aren't the only form of government support, and are far from the best.
In Australia we had significant tariffs on cars until the Button plan reduced them over a long period of time. It lead to low quality cars being produced in Australia, which were uncompetitive internationally and couldn't be exported.
There are other forms of government support which are more effective, and could have been used in this case to keep the car industry going. Notably the car companies didn't ask for tariffs when campaigning for support.
Which at $AUD1 = $US0.5 was happening pretty successfully, and even at 0.75 (or 0.8 like now) was possible.
In the absence of significant tariffs
Tariffs aren't the only form of government support, and are far from the best.
In Australia we had significant tariffs on cars until the Button plan reduced them over a long period of time. It lead to low quality cars being produced in Australia, which were uncompetitive internationally and couldn't be exported.
There are other forms of government support which are more effective, and could have been used in this case to keep the car industry going. Notably the car companies didn't ask for tariffs when campaigning for support.
increased the cost of labour
Not really, in South Australia.