How are auto makers going to handle tariffs?

[zooka]

Can you all post some more whining and crying I don't think I got my fill for today , it's amazing how fragile people have become.

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[Oxford]

I hope Canada would just open its EV market to Chinese brands and be done with it. Affordable EVs and a middle finger to Washington's Oompa Loompa. Sorry, love you Americans. Really nice people in person. But your elected leader is terrible. You can do better.

Yah, what he said. lets get those cheap Chinese EV's with better tech and pay less. No more noise from orange face

 

[Jack Roberts]

Let us try and do a thought exercise without involving politics.
Just an addressing of the facts.
The 25% tariffs on Mexico and Canada are going in effect on March 4th.
The Mach-E is built in Mexico so I assume that makes the whole vehicle subject to a 25% price increase.
Even cars built in the US have parts from both countries which would increase the price considerably.
If you have a car ordered from the factory, and it hasn't crossed the border yet, I think it is possible that Ford will not deliver that car as they cannot swallow the 25% price increase.
Is it possible the car makers will just not build new cars until the tariffs are rescinded?
That seems unlikely but it might be cheaper to shut down factories rather than build cars that you cannot sell because they are 25% more expensive than a Toyota.
What happens to the economy if the American automakers stop production and layoff tens of thousands of workers?
Seems like there is no good outlook on this.
On the upside this will increase the value of our used cars (but replacing it will be more expensive unless you buyJapanese).

The tariffs are only a mechanism to force all countries into a free trade agreement

 

[E90alex]

Can you all post some more whining and crying I don't think I got my fill for today , it's amazing how fragile people have become.

You chose to open and read and comment on this thread. No one is making you.

 

[Oxford]

Can you all post some more whining and crying I don't think I got my fill for today , it's amazing how fragile people have become.

Brave words till your cost go up and the rest of the world gets sick of your erratic behaviour from your leaders and close themselves off to the US. How would the average US citizen act if another countries leaders act like orange face. They would not put up with it.

I'm not an expert, but I think the real answer at the time was to build an efficient North American integrated supply chain so that Canada and the USA could work together to build domestic autos taking advantage of what we had in terms of efficiency by working together. That's how we competed with the Japanese.

Too logical, votes seem to be attracted to the people that say unhinged things.

 

[StevenC56]

Seems there are some billionaires or at least wannabees around.?

 

[zooka]

The tariffs are only a mechanism to force all countries into a free trade agreement

True, Tariffs are put in place for negotiations and deals. Canada and Mexico will be more affected by the tariffs than the US (check your economy by the numbers to the US). Most of you must live your life on Xanax from all the freakouts.

 

[zooka]

Brave words till your cost go up and the rest of the world gets sick of your erratic behaviour from your leaders and close themselves off to the US. How would the average US citizen act if another countries leaders act like orange face. They would not put up with it.

Too logical, votes seem to be attracted to the people that say unhinged things.

You clearly have no idea how things operate. Canada will suffer more than the US, your economy is minute to the US. Tariffs create deals\negotiations.

 

[zooka]

Seems there are some billionaires or at least wannabees around.?

are we converting to 5th grade politics now?

 

[StevenC56]

are we converting to 5th grade politics now?

You are right. My bad. 5th grade is a bit too advanced for the current administration.

 

[zooka]

You are right. My bad. 5th grade is a bit to advanced for the current administration.

...lol

 

[Oxford]

You clearly have no idea how things operate. Canada will suffer more than the US, your economy is minute to the US. Tariffs create deals\negotiations.

Actually I specialized in economics and do understand how tariffs work. It an import tax on the country buying goods and services from another country. In the case of the US and Canada, the US buys cheap oil from Canada that is below the world price of oil and the US refines it and sells it for a bigger profit. They also buy cheaper steal and Aluminum from Canada and manufacture and value add into a product sold all over the world. So now the US wants to have your importers pay more for the product that can not be made or extracted in the US that cheap and in turn make their finished product more expensive. What a great business model.
Yes Canada will suffer more in the short term but when they build out their pipelines and stop selling the cheap oil to the US, who is going to loose?? When the EU starts to buy more of what Canada sells which will replace the US, who is going to suffer. Canada is blessed with huge resources that the US wants, that is why they talk about the 51 State. In the long run, Canada needs to decouple from the US. Orange face has given Canada a gift, they should take it and move their supply chains to the EU, Latin America and Asia. That way when the US go off unhinged, its just noise. I love the US but the relationship goes both ways. Looks like the US wants to abuse their northern neighbour, we will just move on.

Tariffs are an import tax, nothing less and nothing more.

 

[Sikkun]

Can you all post some more whining and crying I don't think I got my fill for today , it's amazing how fragile people have become.

You know what’s more amazing.

The mental gymnastics required to lose a bunch of money and spend more on everything thing go THANK YOU DADDY PUNISH ME MORE.

Who campaigned on:

“Markets over saturated so I am going to crash it, raise prices of everything, and raise unemployment rates?”

Not even Trump is dumb enough to campaign on that.

Egg prices will be lowered DAY ONE. Is the crap he says, doesn’t matter if his policies don’t cause it.

 

[NH_Pony_Boy]

You clearly have no idea how things operate. Canada will suffer more than the US, your economy is minute to the US. Tariffs create deals\negotiations.

I think that is an unknown, America is full of snowflakes that freak out when gas hits $3.00 a gallon.
It is quite possible that while on paper it may hurt Canadians more, it is possible the political consequences will be more dire on this side of the border.

 

[SonicBlue]

Tariffs are an import tax, nothing less and nothing more.

For Trump, tariffs are a negotiating tactic. Nothing less and nothing more. Stop freaking out.

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