Economy Trump announces 25% tariffs on all foreign-made vehicles, some auto parts

[Fanu]

https://finance.yahoo.com/news/trump-announces-25-tariffs-on-all-foreign-made-vehicles-some-auto-parts-004858848.html

President Trump made good on his promise to impose tariffs on foreign automakers, imposing 25% duties on all cars and light trucks not made in the United States, as well as "certain auto parts."

“This will continue to spur growth that you’ve never seen before," Trump said from the White House on Wednesday, signing an executive order putting the tariffs in place.

The 25% tariffs are set to take effect April 2 and add to existing tariffs. The White House estimates that $100 billion in annual duties will be collected.


Though the new tariffs will hit mostly foreign automakers, domestic automakers, including the Big Three — Ford, GM, and Stellantis — are concerned about their impact too. GM, Ford, and Stellantis build vehicles in Canada, Mexico, and China, and they foresee higher production costs due to tariffs' effect on the auto supply chain.

"In our view these initial tariffs (if they hold in their current form) would be a hurricane-like headwind to foreign (and many US) automakers and ultimately push the average price of cars up $5k to $10k depending on the make/model/price point,"
We expect to learn more over the next week but for now investors will be frustrated by this announcement with few details."

6D chess - make america great again by making everything even more expensive

 

[Beechwood]

I believe Trump is looking to see more companies like Hyundai. Hyundai announced on Monday that to avoid tariffs they were going to invest billions of dollars to create a manufacturing facility in America.

The Trump Effect: White House Touts Latest Investment Announcement From Hyundai​

The Trump Effect: White House Touts Latest Investment Announcement From Hyundai

townhall.com

The Trump administration touted the latest investment announcement on Monday from Hyundai after the South Korean conglomerate said it will commit to expanding its operations in the U.S.


“Hyundai Motor Group is deepening its partnership with the United States, reinforcing our shared vision for American industrial leadership,” the company said in a statement highlighting the $21 billion investment. “The Group’s investment and efforts will further expand our operations in the U.S. and grow our American workforce. Thank you to our American partners, employees, and communities. We’re proud to stand with you, and proud to build the future together.”....

 

[Fanu]

Bunch of companies make these announcements but do they actually follow thru? Remember this whole fiasco:

which ended in:

https://www.reuters.com/business/foxconn-sharply-scales-back-wisconsin-investment-2021-04-20/

In 2017, then-President Donald Trump announced a $10 billion investment by Foxconn for a manufacturing facility. By 2021, Foxconn abandoned most of its plans and never delivered on promise to bring 13,000 new jobs

These announcements are just made so they appease Trumps ego and show him as some great businessmen - in the end, these investments are nothing but PR.

Also what about US car makers which make cars in Canada & Mexico and will be hit with these tariffs?

 

[Seano]

Also what about US car makers which make cars in Canada & Mexico and will be hit with these tariffs?

The whole point is to pressure companies into building here. Thats precisely who the tariffs are supposed to hit.

 

[Fanu]

The whole point is to pressure companies into building here. Thats precisely who the tariffs are supposed to hit.

Well then, thats wrong way to go about things.
Cause building factories and hiring talent takes time and money - and money will be lost by these tariffs.

 

[Seano]

Well then, thats wrong way to go about things.
Cause building factories and hiring talent takes time and money - and money will be lost by these tariffs.

Right, its an investment in the future. Best case scenario, anyway.

 

[Fanu]

Right, its an investment in the future. Best case scenario, anyway.

What I'm saying is, how is Ford/GM/Stellantis going to invest in multibillion factories + relocating all of their supply chains from Mexico/Canada/Europe/China into USA (if even possible) when its bleeding money due to increased business costs and reduced sales?

 

[Seano]

What I'm saying is, how is Ford/GM/Stellantis going to invest in multibillion factories + relocating all of their supply chains from Mexico/Canada/Europe/China into USA (if even possible) when its bleeding money due to increased business costs and reduced sales?

Thats pretty much why they'd say they left the US in the first place. The reason we lost production is because we can't compete with countries like Mexico because of red tape and regulation. If its cheaper to build here, they will.

 

[Fanu]

Thats pretty much why they'd say they left the US in the first place. The reason we lost production is because we can't compete with countries like Mexico because of red tape and regulation. If its cheaper to build here, they will.

I think it would be even cheaper still to wait out the next 4 years until the end of Trumps term and his flip flopping on tariffs.

 

[HockeyBjj]

I think it would be even cheaper still to wait out the next 4 years until the end of Trumps term and his flip flopping on tariffs.

This. Manufacturing isn’t coming back. US labor is too expensive, building massive automated facilities is too expensive. Even if they knew for sure tarrifs would stay for 50+ years using cheap foreign labor and having customers pay the 25% tax would still be cheaper than being 100% American made. Add in the fact the tarrifs or any trade deal can be ripped up at any time? No chance.

Maybe at most some companies put in simplistic final assembly runs in the US and beg for a waiver

 

[Satsui Ryu]

I believe Trump is looking to see more companies like Hyundai. Hyundai announced on Monday that to avoid tariffs they were going to invest billions of dollars to create a manufacturing facility in America.

The Trump Effect: White House Touts Latest Investment Announcement From Hyundai​

The Trump Effect: White House Touts Latest Investment Announcement From Hyundai

townhall.com

The Trump administration touted the latest investment announcement on Monday from Hyundai after the South Korean conglomerate said it will commit to expanding its operations in the U.S.


“Hyundai Motor Group is deepening its partnership with the United States, reinforcing our shared vision for American industrial leadership,” the company said in a statement highlighting the $21 billion investment. “The Group’s investment and efforts will further expand our operations in the U.S. and grow our American workforce. Thank you to our American partners, employees, and communities. We’re proud to stand with you, and proud to build the future together.”....

Bunch of companies make these announcements but do they actually follow thru? Remember this whole fiasco:

which ended in:

https://www.reuters.com/business/foxconn-sharply-scales-back-wisconsin-investment-2021-04-20/

These announcements are just made so they appease Trumps ego and show him as some great businessmen - in the end, these investments are nothing but PR.

Also what about US car makers which make cars in Canada & Mexico and will be hit with these tariffs?

Pretty much all PR. Like during the last go-around for tariffs Honda made the announcement they were now building the new generation of Civic in Indiana because of the tariffs. The thing is they have been building cars in Indiana for forever with them already building certain Civic trims there. Its all just a way to capitalize on the headlines.

 

[method115]

I think it would be even cheaper still to wait out the next 4 years until the end of Trumps term and his flip flopping on tariffs.

This is the reality. Maybe if actual laws were passed to keep this in place even after Trump it would work but in this scenario they'd rather just wait out Trump.

 

[Richmma80]

This is why Liberals are fucking losers. Trump is trying to do something while Liberals already gave up like they did with the border. There was nothing that could be done they said. Who's gonna pick all the flowers? Who's gonna build all the houses?

There was nothing that could be done with all the illegal gang members taking over apartments they said.

There was nothing that could be done with the fires in California

There was nothing that could be done with all the trannies in sports

There was nothing that could be done about gas prices

There was nothing that could be done with the egg prices

There's nothing that could be done with bringing back manufacturing because it costs too much to make shit here even though the US is one of the largest manufacturing countries in the world RIGHT NOW

 

[IanEdwards]

There was nothing that could be done with all the trannies in sports

I can't be bothered to go through the whole post but this is one where I can offer assistance to you immediately on.

out of over 500,000 NCAA athletes, I believe there are a grand total of 34 trannies competing in women's sports. I *think* that represents 0.006% of the competitive college athletes nationwide.

when you say 'all the....', its almost as though you seem to think there are a lot of them. Glad to be of assistance, anyway.

 

[IanEdwards]

This. Manufacturing isn’t coming back. US labor is too expensive, building massive automated facilities is too expensive. Even if they knew for sure tarrifs would stay for 50+ years using cheap foreign labor and having customers pay the 25% tax would still be cheaper than being 100% American made.

this is the kind of simple maths and difficult truth someone needed to admit or make much more of a meal out of, a long time ago.

 

[Fergelmince]

https://finance.yahoo.com/news/trump-announces-25-tariffs-on-all-foreign-made-vehicles-some-auto-parts-004858848.html

6D chess - make america great again by making everything even more expensive

Buy American, Baby

 

[lsa]

This is why Liberals are fucking losers. Trump is trying to do something while Liberals already gave up like they did with the border. There was nothing that could be done they said. Who's gonna pick all the flowers? Who's gonna build all the houses?

There was nothing that could be done with all the illegal gang members taking over apartments they said.

There was nothing that could be done with the fires in California

There was nothing that could be done with all the trannies in sports

There was nothing that could be done about gas prices

There was nothing that could be done with the egg prices

There's nothing that could be done with bringing back manufacturing because it costs too much to make shit here even though the US is one of the largest manufacturing countries in the world RIGHT NOW

so you switched side... did not get enough attention?

 

[CHluigimangione]

Buy American, Baby

clearly planned by Trump. it was like watching the WWE and triple H blading his forehead under the ring.

 

[Fergelmince]

clearly planned by Trump. it was like watching the WWE and triple H blading his forehead under the ring.

the way he turned his head to catch the bullet just the right way

 

[CHluigimangione]

the way he turned his head to catch the bullet just the right way

yep very well re-hearsed - gotta hand it to him.