Trump places 25% tariffs on all foreign automobiles

[Morphine Prince 109,986]

President Donald Trump said Wednesday he was imposing a 25% tariff on all autos coming into the United States.

Trump said he expects auto firms to relocate to the United States and build new sites or expand existing ones. He hit out at companies that have opened facilities in Canada and Mexico in recent decades, at what he said were the expense of U.S. workers.

"If you build your car in the U.S., there's no tariff," Trump said.

He said the tariffs would go into effect April 2 and would be "permanent." He said the United States could end up collecting as much as $100 billion from tariffs revenues. 

Shares of the top U.S. automakers fell sharply in after-hours trading on the announcement. 

White House officials later clarified that foreign components would also be taxed, even if the cars were assembled in the United States. 

Eight of the top 10 "most American" vehicles whose parts are sourced and assembly are undertaken in the United States are actually foreign-owned companies, according to Cars.com.

Source: https://www.nbcnews.com/business/autos/trump-auto-tariffs-which-companies-how-much-when-what-to-know-rcna198223

 

[Morphine Prince 109,986]

I was thinking of buying a new car and NOT American of course (they are cheaply made and bad cars).

Most reliable cars are Japanese (Toyota, Honda). 

[PartySick 174,555]

4 minutes ago, Morphine Prince said:

He said the United States could end up collecting as much as $100 billion from tariffs revenues.

It's infuriating that his base won't understand that it's American consumers who will be paying 100% of this. 

Not care manufacturers, not important/export companies, nobody but the American going to the lot to pick up their new ride.

[misha4ever 2,087]

56 minutes ago, Morphine Prince said:

I was thinking of buying a new car and NOT American of course (they are cheaply made and bad cars).

Most reliable cars are Japanese (Toyota, Honda). 

Have you seen the new Xiaomi SU7?

[PunkTheFunk 125,734]

[NeanderthalDavid 853]

This has Elon written all over it

[Petie Estie 5,741]

2 hours ago, PartySick said:

It's infuriating that his base won't understand that it's American consumers who will be paying 100% of this. 

Not care manufacturers, not important/export companies, nobody but the American going to the lot to pick up their new ride.

I feel like everybody is aware that prices will go up, at least until things are relocated to America. That's the whole point. It's what his base voted for. They want to make this sacrifice for more American manufacturing. We'll see if it works and if people can actually handle it. At least I hope most people are aware of this. It's not a hard concept. 

[Emvee 8,866]

33 minutes ago, SEANGT said:

I feel like everybody is aware that prices will go up, at least until things are relocated to America. That's the whole point. It's what his base voted for. They want to make this sacrifice for more American manufacturing. We'll see if it works and if people can actually handle it. At least I hope most people are aware of this. It's not a hard concept. 

You’re giving American voters way too much credit. The average Americans doesn’t even know what a tariff is, much less know the intricacies of our supply chains. 
 

But regardless of all that, no, people did not vote for him to bring back manufacturing. They voted for him because they fooled themselves into believing the simplistic promise that he would bring down the cost of living aka consumer prices. He’s doing the opposite.His policies will impoverish a generation and, in the end, who exactly benefits from this? Not the American consumer. Not the American worker (the GOP is actively anti-union and trying to lower wages and no doubt his anti-education policies are intended to turn Americans into low wage and low skill workers who can be exploited for more profits). The only ones who will benefit are the oligarchs who will have the power to take ownership of these industries. 

[PartySick 174,555]

9 minutes ago, SEANGT said:

I feel like everybody is aware that prices will go up, at least until things are relocated to America. That's the whole point. It's what his base voted for. They want to make this sacrifice for more American manufacturing. We'll see if it works and if people can actually handle it. At least I hope most people are aware of this. It's not a hard concept. 

I understand the (broken) logic behind the idea but I highly doubt it'll work out the way they think it will.

If anything, the hostility towards foreign trade is an effort to seize upon these industries, monopolize them, and price gouge even harder.

Americans will have to pay more regardless only now, instead of quality foreign made products, it's shoddy yet expensive American products made in industries where most/all regulations have been lifted.

Imagine every American made car being as sh*ttily made as the Swastikar.

[Economy 53,135]

Brilliant. Raise car prices and hurt efficient supply chains that were built over decades so North America can fail to compete with European and Asian Cars

 

Fyi, Canada buys more cars & car parts from USA than we sell so if we shift to self reliance the US looses a net contributer to auto industry

 

Canada sells marginally more to the US overall purely due to energy and resources and nothing else (which not buying resources to balance trade wont help US anyway cuz u need these resources to create products to export elsewhere, for example our oil gets refined and exported elsewhere too)

 

Whether its manufacturing, services, pharmacudicals, chemicals, machinery or agriculture Canada buys more from the USA than we sell because the US is more competitive and also food we cant grow half the year so were a net contributer to non fossil fuel and other resource jobs

 

Its arguably the most beneficial win-win trade relationship in the worlds Top 10 largest economies and Trump insists on the narrative were ripping them off

 

Back to the US vs the world as a whole (not just Canada) the US is highly competitive in services (financial, entertainment, designing etc). For example designing shoes that get manufactured in China and get sold all over the world is a form of services export. Ppl like Trump exclude these exports from Trade Balance but its a highly misleading cherry picking of numbers to only count physical goods

 

Theres a reason the US is in the top 10 highest GDP Per Capita in the world. Its wealthy and productive and it does sell a lot to the world, a lot more than Trump realizes. But developed economies export differently. They are no longer manufacturing cheap shoes or school pencils. Industrialized economies are more high tech and services based

 

With the exeption of a few developed Nations like Germany, Netherlands etc that have managed to maintain a strong manufacturing sector (but still declining), almost all rich Nations have trade deficits in manufacturing and physical goods. It is not a result of being ripped off. Mature economies generate wealth other ways and manufacture less. Its not 1970 anymore Trump needs to grow up

 

If he wants a golden age for Americans rather than blaming other Nations, look at Americas own regressive tax structure and overspending on defence draining resources that cant help ppl

 

@Morphine Prince i ranted a lot. Sorry. I have a lot to say on this matter as many ppl are highly uneducated on this matter

 

 

[CELINE 782]

Japan, Korea, Canada and Germany rn

 

It'll be interesting to see what these countries would do to counter this. 

[Awakened M 3,277]

Literally running the country like a business: scamming the **** outta the general populus with "hidden fees." 

[Rat Boy 43,913]

Wait isn’t that a lot? I don’t know anything about economics lol. 

[dynamite 67,646]

14 minutes ago, Rat Boy said:

I don’t know anything

we can't all be like @Jill 

[PartySick 174,555]

32 minutes ago, Rat Boy said:

Wait isn’t that a lot? I don’t know anything about economics lol. 

Yeah, it means the average cost of a new car in the US ($50k) just jumped between $10k and $15k