Trump announces 25% tariffs on car imports to US

[Hodad]

I'm not sure anyone is that dumb. He's out to deliberately hurt average Americans.

BBC

US President Donald Trump has announced new import taxes of 25% on cars and car parts coming into the US in a move that threatens to widen the global trade war.

Trump said the latest tariffs would come into effect on 2 April, with charges on businesses importing vehicles starting the next day. Charges on parts are set to start in May or later.

The president claimed the measure would lead to "tremendous growth" for the car industry, promising it would spur jobs and investment in the US.

But analysts have said the move is likely to lead to the temporary shutdown of significant car production in the US, increase prices, and strain relations with allies. 

Edited March 27 by Hodad

[herbie]

Oh believe me, he is that stupid.
Billionaires don't blink an eye paying an extra $10-$30,000 fora car. Work an extra few minutes.

What's more likely, they interrupt their whole process and start building new US plants that won't open for 5-6 years, or they'll hike the price of American built cars to cover the tariffs on others until the m0ron is gone from office?

[CdnFox]

I think he honestly believes that this will force car manufacturers to move back to the united states. But that's not how it's likely to play out, and this will cause a lot of damage to his economy.

If the US doesn't radically change course in about 2 months then a recession will likely be inevitable and that's going to put a lot of pressure on the republicans come the midterms. 

[Chrissy1979]

Who could have guessed electing a mentally deranged rapist might be a bad idea?

[Deluge]

12 hours ago, Hodad said:

I'm not sure anyone is that dumb. He's out to deliberately hurt average Americans.

BBC

US President Donald Trump has announced new import taxes of 25% on cars and car parts coming into the US in a move that threatens to widen the global trade war.

Trump said the latest tariffs would come into effect on 2 April, with charges on businesses importing vehicles starting the next day. Charges on parts are set to start in May or later.

The president claimed the measure would lead to "tremendous growth" for the car industry, promising it would spur jobs and investment in the US.

But analysts have said the move is likely to lead to the temporary shutdown of significant car production in the US, increase prices, and strain relations with allies. 

Don't want to pay tariffs? Great, just open your plant here, and that percentage will drop to zero. 

I love it! 

[Deluge]

8 hours ago, CdnFox said:

I think he honestly believes that this will force car manufacturers to move back to the united states. But that's not how it's likely to play out, and this will cause a lot of damage to his economy.

If the US doesn't radically change course in about 2 months then a recession will likely be inevitable and that's going to put a lot of pressure on the republicans come the midterms. 

Welp, if he's wrong, then the woketards will storm back and it'll be mandated pronouns for everyone! 

[Deluge]

46 minutes ago, Chrissy1979 said:

Who could have guessed electing a mentally deranged rapist might be a bad idea?

I couldn't have guessed, but I'm sure glad we didn't elect a mentally deranged rapist. 

We DID, however, have a mentally deranged hair sniffer who very well could've been a pedophile, put into office, and we have people like you to thank for that. 

[CdnFox]

13 minutes ago, Deluge said:

Welp, if he's wrong, then the woketards will storm back and it'll be mandated pronouns for everyone! 

Yeah. 

The absolute last thing Americans should want is to see the pendulum swing all the way back again. 

It's kind of weird, but when the republicans like trump go 'extreme' they tend to destroy the short term economy by going too far.  When dems go extreme they tend to destroy the long term economy by borrowing too much and killing productivity and growth.  So if you flip back and forth from one extreme to another you kill your present AND your future. And you wind up with endless culture wars. 

My sincere hope is that trump will settle down, listen to the business communities and bring stability back. It's not like you can't tariff anything but this on again off again uncertainty is death to business investment. When he says "we might do this, we might do that" then what business thinks is "we need to stop investing and pull back until we see what the final result is", and that will slow the economy at the same time the tariffs are raising inflation. 

Slow down, decide what you're going to do and do the minimum tariffs to achieve your goals, announce everything and stick to it so people know it's safe to invest again, and focus on getting businesses spending money on building and expanding the economy.  That worked for him in the first term, i'm not sure why he's not focusing on that again.  But it's early days so we'll see. 

[CdnFox]

26 minutes ago, Deluge said:

Don't want to pay tariffs? Great, just open your plant here, and that percentage will drop to zero. 

I love it! 

But that's not how it works

Instead what they say is oh well I guess we'll just pay tariffs because trump will be gone in 4 years and it will take me 5 years to move my Factory.

Meanwhile people who are already doing business in the united states say to themselves " We better not expand our factories in the united states right now because of the political uncertainty. We don't know if we're going to face a recession because the economic future is uncertain'

Investment spending in the united states, in terms of actual dollars not just people saying that they intend to spend money someday, is severely down right now. Now that's a tiny bit misleading because it goes down almost every single election when the new government is signed in because business holds on to its cash to see what the new government is going to do and then after its first few months the investment tends to come right back and that is true no matter which party gets in.

But the way things are going that investment may not come back this time. It may sit on the sidelines while it waits to see how everything plays out

And Automotive manufacturers are already saying that they don't intend to move their stuff back for several very good reasons. First there isn't a trained labor pool available in the united states that would replace the Canadian and Mexican workforces already in play. Secondly, it would take more than 4 years to make the moves and it would cost a massive massive investment. And thirdly the number one customer for those American cars is Canada. Nobody buys more American cars than Canada does. If they pull their manufacturing out of Canada, canada will inevitably look at either starting its own car companies to service its market or expanding its relationship with Japanese, Korean, Chinese, and European car manufacturers.

Pulling their companies out of Canada may actually cost them far more jobs than are created in the united states by moving.

So it's not as simple as your projecting. And America couldn't find itself hurting from this very badly.

Remember, aside from energy Canada buys more from the US than the US buys from Canada. Killing that relationship hurts America more than it hurts Canada in the long run.

And putting the American economy into a recession is just the worst idea

[Deluge]

9 minutes ago, CdnFox said:

Yeah. 

The absolute last thing Americans should want is to see the pendulum swing all the way back again. 

It's kind of weird, but when the republicans like trump go 'extreme' they tend to destroy the short term economy by going too far.  When dems go extreme they tend to destroy the long term economy by borrowing too much and killing productivity and growth.  So if you flip back and forth from one extreme to another you kill your present AND your future. And you wind up with endless culture wars. 

My sincere hope is that trump will settle down, listen to the business communities and bring stability back. It's not like you can't tariff anything but this on again off again uncertainty is death to business investment. When he says "we might do this, we might do that" then what business thinks is "we need to stop investing and pull back until we see what the final result is", and that will slow the economy at the same time the tariffs are raising inflation. 

Slow down, decide what you're going to do and do the minimum tariffs to achieve your goals, announce everything and stick to it so people know it's safe to invest again, and focus on getting businesses spending money on building and expanding the economy.  That worked for him in the first term, i'm not sure why he's not focusing on that again.  But it's early days so we'll see. 

You're right, CDN.

At first it was exhilarating to watch this administration act, now some shit is starting to hit the fan and it's a bit worrisome. 

Still, I think they can adapt and overcome. 

[CdnFox]

39 minutes ago, Deluge said:

You're right, CDN.

At first it was exhilarating to watch this administration act, now some shit is starting to hit the fan and it's a bit worrisome. 

Still, I think they can adapt and overcome. 

It's very easy to forget it's barely been 2 months since he got in    I remember thinking this in his first term, it feels like he's been in for a year already but it's just over 60 flipping days  

He still has time, he can still bring back stability and enourage american companies to start ramping up and breaking ground and expanding, and the us is not in recession just yet. 

So there's every reason to hope that in the coming months he'll decide he's knocked everyone off their game enough and settle down to the nuts and bolts of building a solid economy, which he's shown previously he can do when he focuses on that. 

[herbie]

The asleeptard tells us he has no problem paying an extra $12,000 (based on avg sale price) for a car and how that will help Joe Average's finances.
The parade of states falling over each other with incentives and Right To Scab legislation. a complete lack of small fuel efficient cars will be 'good for America".

This has got to be the epitome of 'cutting off your own nose to spite your face' ever and the dupes are here cheering it on.

[CdnFox]

21 minutes ago, herbie said:

The asleeptard tells us he has no problem paying an extra $12,000 (based on avg sale price) for a car and how that will help Joe Average's finances.

Is that what the wife calls your little guy now?  LOL

Honestly dude, every day you sound more and more like Myata except that he's been drinking. Why can't you make coherent posts any more?

[gatomontes99]

4 hours ago, Chrissy1979 said:

Who could have guessed electing a mentally deranged rapist might be a bad idea?

Yes, but now we have Trump.

[herbie]

4 minutes ago, CdnFox said:

Honestly dude, every day you sound more and more like Myata except that he's been drinking. Why can't you make coherent posts any more?

One day when you hit Grade 7 you'll be able to comprehend written material and form intelligent opinions.
You may find it far more rewarding than endlessly seeking approval by ass kissing the extreme rightists.

[CdnFox]

Just now, herbie said:

One day when you hit Grade 7 you'll be able to comprehend written material and form intelligent opinions.

Clearly not the voice of experience talking  

 

Quote

You may find it far more rewarding than endlessly seeking approval by ass kissing the extreme rightists.

It always comes back to asses with you guys.

Gee I sure hope someday I'm as smart as you and managed to Triple the value of my house with a credit card

[gatomontes99]

2 hours ago, CdnFox said:

But that's not how it works

Instead what they say is oh well I guess we'll just pay tariffs because trump will be gone in 4 years and it will take me 5 years to move my Factory.

Meanwhile people who are already doing business in the united states say to themselves " We better not expand our factories in the united states right now because of the political uncertainty. We don't know if we're going to face a recession because the economic future is uncertain'

Investment spending in the united states, in terms of actual dollars not just people saying that they intend to spend money someday, is severely down right now. Now that's a tiny bit misleading because it goes down almost every single election when the new government is signed in because business holds on to its cash to see what the new government is going to do and then after its first few months the investment tends to come right back and that is true no matter which party gets in.

But the way things are going that investment may not come back this time. It may sit on the sidelines while it waits to see how everything plays out

And Automotive manufacturers are already saying that they don't intend to move their stuff back for several very good reasons. First there isn't a trained labor pool available in the united states that would replace the Canadian and Mexican workforces already in play. Secondly, it would take more than 4 years to make the moves and it would cost a massive massive investment. And thirdly the number one customer for those American cars is Canada. Nobody buys more American cars than Canada does. If they pull their manufacturing out of Canada, canada will inevitably look at either starting its own car companies to service its market or expanding its relationship with Japanese, Korean, Chinese, and European car manufacturers.

Pulling their companies out of Canada may actually cost them far more jobs than are created in the united states by moving.

So it's not as simple as your projecting. And America couldn't find itself hurting from this very badly.

Remember, aside from energy Canada buys more from the US than the US buys from Canada. Killing that relationship hurts America more than it hurts Canada in the long run.

And putting the American economy into a recession is just the worst idea

Ford and GM literally have plants sitting idle in Michigan. It would take 6 months to get them up and running. It took a year to move them to Mexico and they had to build the facility.

[CdnFox]

Just now, gatomontes99 said:

Ford and GM literally have plants sitting idle in Michigan. It would take 6 months to get them up and running.

They disagree with you. Automakers aren’t rushing to move production to US factories to avoid tariffs | CNN Business

And building one plant in mexico is a whole different ball game. I don't think you realize how big production is in Canada. 

And that fails to address the other point - canada is the us's number one car buyer.  You think we'll still buy the cars if production is moved away? You think we wouldn't put reciprocal tariffs on us cars and take tariffs off asia?

And how much investment do you think the car companies will raise for this?  Have you seen their stocks today?

Trump seems to think it's simple, but in reality it'll wind up killing the car sector either way. The 'bloodbath' he predicted for the auto sector if biden got in is playing out right now. 

There are ways to incentivize this over time. He's doing it wrong. 

[gatomontes99]

Just now, CdnFox said:

They disagree with you. Automakers aren’t rushing to move production to US factories to avoid tariffs | CNN Business

And building one plant in mexico is a whole different ball game. I don't think you realize how big production is in Canada. 

And that fails to address the other point - canada is the us's number one car buyer.  You think we'll still buy the cars if production is moved away? You think we wouldn't put reciprocal tariffs on us cars and take tariffs off asia?

And how much investment do you think the car companies will raise for this?  Have you seen their stocks today?

Trump seems to think it's simple, but in reality it'll wind up killing the car sector either way. The 'bloodbath' he predicted for the auto sector if biden got in is playing out right now. 

There are ways to incentivize this over time. He's doing it wrong. 

Ok, you didn't address what I said other than to say they won't. I simply stated it won't take them long to move production back the the US. You asserted it would take years. It won't.

If they don't move production back, Honda, Volkswa, Tesla, Toyota, Nissan and several other foreign owned, America built cars will have a competitive cost advantage. So it is their call.

[robosmith]

15 hours ago, herbie said:

Oh believe me, he is that stupid.
Billionaires don't blink an eye paying an extra $10-$30,000 fora car. Work an extra few minutes.

What's more likely, they interrupt their whole process and start building new US plants that won't open for 5-6 years, or they'll hike the price of American built cars to cover the tariffs on others until the m0ron is gone from office?

Unlikely anyone will make long term investments due to Trump tariffs cause he's already demonstrated that he'll back down at the drop of a hat.

Remember the $10B investment that Foxconn announced in Wisconsin that Trump crowed about in his first term?

No one else does, either.

[CdnFox]

1 hour ago, gatomontes99 said:

Ok, you didn't address what I said other than to say they won't. I simply stated it won't take them long to move production back the the US. You asserted it would take years. It won't.

 

It will. Again I don't think you understand the size of what we're talking about. Moving a factory, one Factory, might be possible within a relatively short time depending on what that factory does.  

Moving their production is an insanely more complex task. And yes it takes a long time.  It's not just about building the thing, you have to select where you want it, find the land and work out the zoning, consider labour force accessability, a whole bunch of things that usually take a couple of years in the US if you go very very quickly before you even put the first shovel in the ground and if you're going to do that for your entire production.... that's not something that will happen in four years.  And then there's the supply chain. 

U.S. industry needs Canada and Mexico to be competitive | Windsor Star

He said an investment in a new plant takes three or four years from start to finish and it takes even longer to build a reliable supply chain.

“It would take three to five years of dedicated application to move any specific number of vehicles around North America,” Fiorani said.

“By then the landscape could change. This industry doesn’t and can’t move quickly.

“Look how long it took for Honda to set up in North America in the 1980s. Once there was an agreement to build something, it took nearly another decade to relocate production here to keep their volumes adequate.”

 Remember that no factory builds cars. They all build or assemble PARTS of cars. There's no factory where raw materials go in one door and a car rolls out the other. As it stands today most parts have to go back and forth across the border several times as they're assembled and they move to the next stage. 

So even if they move SOME production back they would STILL be tariffed heavily. 

It's just easier to wait till the next president comes along. 

1 hour ago, gatomontes99 said:

If they don't move production back, Honda, Volkswa, Tesla, Toyota, Nissan and several other foreign owned, America built cars will have a competitive cost advantage. So it is their call.

bad news dude, almost all of those still depend on some manufacturing in their home country for some components and often in Canada as well. The parts would still be subject to tariffs. 

[Deluge]

4 hours ago, CdnFox said:

But that's not how it works

Instead what they say is oh well I guess we'll just pay tariffs because trump will be gone in 4 years and it will take me 5 years to move my Factory.

Meanwhile people who are already doing business in the united states say to themselves " We better not expand our factories in the united states right now because of the political uncertainty. We don't know if we're going to face a recession because the economic future is uncertain'

Investment spending in the united states, in terms of actual dollars not just people saying that they intend to spend money someday, is severely down right now. Now that's a tiny bit misleading because it goes down almost every single election when the new government is signed in because business holds on to its cash to see what the new government is going to do and then after its first few months the investment tends to come right back and that is true no matter which party gets in.

But the way things are going that investment may not come back this time. It may sit on the sidelines while it waits to see how everything plays out

And Automotive manufacturers are already saying that they don't intend to move their stuff back for several very good reasons. First there isn't a trained labor pool available in the united states that would replace the Canadian and Mexican workforces already in play. Secondly, it would take more than 4 years to make the moves and it would cost a massive massive investment. And thirdly the number one customer for those American cars is Canada. Nobody buys more American cars than Canada does. If they pull their manufacturing out of Canada, canada will inevitably look at either starting its own car companies to service its market or expanding its relationship with Japanese, Korean, Chinese, and European car manufacturers.

Pulling their companies out of Canada may actually cost them far more jobs than are created in the united states by moving.

So it's not as simple as your projecting. And America couldn't find itself hurting from this very badly.

Remember, aside from energy Canada buys more from the US than the US buys from Canada. Killing that relationship hurts America more than it hurts Canada in the long run.

And putting the American economy into a recession is just the worst idea

I don't think investors will think that way. Once they see that Harris or Newsom are the best the democrats can come up with, they'll know that Vance will be around for 8 more years after this next four years - that's 12 years of pro business practices and policies, which should be great for everyone except the woke cultists. 

Also, I think Americans are sick of the gender bender age and are ready to embrace success and hard work again - like it was in the 50's. 

I'm still optimistic, for the most part. 

 

[CdnFox]

6 minutes ago, Deluge said:

I don't think investors will think that way. Once they see that Harris or Newsom are the best the democrats can come up with, they'll know that Vance will be around for 8 more years after this next four years - that's 12 years of pro business practices and policies, which should be great for everyone except the woke cultists. 

 

They will wait and see. They don't tend to take chances, they will wait and see what Vance will do. And even if Vance gets in there is a very reasonable chance he will kill these tariffs because at that point there is a very real chance that America's economy is going to be in the toilet if the uncertainty has not been resolved between now and then.

Honestly they are already facing a huge amount of pressure from the expense and disruption to the economy that these tariffs have created already. Again Canada is America's biggest customer by far and while the reverse is true as well it means that if we stop buying American because of a war then the American economy is going to take a nasty hit.

Trump knows this and has acknowledged there may be a recession. He thinks in the long run it will correct and he will benefit, but the reality of the situation is not favoring that point of view. And this is what economists from both sides of the aisle are trying desperately to point out to him

Did you know for example the Canada sells oil to the Americans at a vastly reduced price compared to the world market? We've done it because it was easiest but we can sell that oil to other countries for more money, we just have to build the pipelines which we have never been fond of doing. America needs that oil and it will hurt your economy badly if it doesn't have access to it and right now Canadians are all excited about pipelines for the first time in forever to sell to other markets.

You need our electricity too but they are talking now about building an Energy Corridor for the pipelines that will allow quebec and British Columbia and the maritimes which sell you a lot of energy to sell to some of our other provinces which are energy short right now like Alberta and Manitoba and Ontario that don't have the riches of hydropower.

And sure you can replace that with new killer power or building more oil powered plants or the like but that will be expensive and time-consuming and problematic. America won't go belly up but your economy will suffer and as a result you'll see recessions or stagflation or periods of incredibly slow growth

And the American people won't tolerate that.

So trump has to come to a point of balance where he's encouraging growth in America but he's not tanking America's economy otherwise out of anger people will trash the republicans next election anyway. Republicans ran on lower inflation, better economy, better jobs, all that good stuff and you aren't going to get that in a inflationary recession.