How are auto makers going to handle tariffs?

[RickMachE]

Though, this issue is not of the world.

It is of the USA tearing up the Trump negotiated free deal with the Canada and Mexico.

Wait, wut? He is complaining about the deals that HE NEGOTIATED?

If you listen to him (I try not to), he says the whole issue is Fentanyl, and if they stop the flow he won't do the tariffs. But if the tariffs are to level the trading field, then...

And, if he is the one that negotiated (I know, he didn't negotiate crap others did) the prior deals, how can they be bad?

I'm so confused. I thought it all boiled down to how much he could personally enrich himself during his term, and after. Now it's about the Fentanyl?

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[NH_Pony_Boy]

The ironic part is businesses generally favor the GOP because of their anti-regulation creed.
And yes, building a factory and worrying about existing and new regulations can rise cost and be burdensome.
But announcing tariffs, then postponing them, then reimposing them (even if it is a bluff) is just as bad, if not worse, then regulations.

 

[Oxford]

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

No freaking out, just facts. So tired of people stating stupidity that the seller pays the tariff and not the importer. In the US, the government collect import duties (fancy name for tax) when a product comes in, they collect the "duties and tariffs" from the importers account. This is paid not when ordered but when received in teh US. That extra cost is now the base cost to the importer and they decide what to charge their clients. imagine, ordering a product with a cost agreed with but the delay in delivery gets caught with a "tariff" that was not originally there.

No freaking out but I bet the importer is freaking out now.

 

[Sikkun]

Wait, wut? He is complaining about the deals that HE NEGOTIATED?

If you listen to him (I try not to), he says the whole issue is Fentanyl, and if they stop the flow he won't do the tariffs. But if the tariffs are to level the trading field, then...

And, if he is the one that negotiated (I know, he didn't negotiate crap others did) the prior deals, how can they be bad?

I'm so confused. I thought it all boiled down to how much he could personally enrich himself during his term, and after. Now it's about the Fentanyl?

It’s about whatever it needs to be about. Any reason can be changed or defended just make something new up.

 

[NH_Pony_Boy]

Gifted article from WSJ.
I have always wondered how it is cost effective to send parts back and forth but I assume a public traded company has figured out the way to do it at the lowest cost to its shareholders.

https://www.wsj.com/business/autos/...b?st=dfqP4d&reflink=desktopwebshare_permalink

 

[davegram]

Gifted article from WSJ.
I have always wondered how it is cost effective to send parts back and forth but I assume a public traded company has figured out the way to do it at the lowest cost to its shareholders.

https://www.wsj.com/business/autos/...b?st=dfqP4d&reflink=desktopwebshare_permalink

Really interesting and informative article. Thanks!

 

[Phil Martin]

This isn't hard to understand. They'll pass the cost onto consumers. I would, but first I would protest the tarrifs to abolish me of having to raise prices. Once tarrifs are in place then the cost increase takes place, but I relay the reasoning and actions I did to portray more positive outcome. That's what they're essentially doing.

 

[StevenC56]

Again, I have yet to find a single person that can explain how these proposed tariffs are going to benefit any of us middle class Americans. We already pay the bulk of the taxes in this country, so please enlighten me.

 

[NH_Pony_Boy]

Again, I have yet to find a single person that can explain how these proposed tariffs and going to benefit any of us middle class Americans. We already pay the bulk of the taxes in this country, so please enlighten me.

Them: Waves hands-“Free money paid by Mexico”.
Us:“But it is paid by the importer inside the US.”
Them:“Traitor”

 

[KPal64]

Wait! I got this one. Carmakers will either (a) pass the costs on to the buyer, or (b) pass the costs on to the buyer, or (c) pass the costs on to the buyer.

 

[bvelderman]

From everything I've been reading, we simply don't know yet. The devil is in the details. Will tariffs go into effect immediately? Will they be threatened, put into place for two days, then lifted? Will there be an exception for American car companies building things in Mexico and Canada? Will there be a grace period for Ford, GM, and Stellantis if they promise to move as many factories as possible to the US within a certain time frame? I'm sure there are lots and lots of companies and lobbyists making their case for different parameters to any tariffs. Ultimately it's a lot of uncertainty.

 

[SonicBlue]

Again, I have yet to find a single person that can explain how these proposed tariffs are going to benefit any of us middle class Americans. We already pay the bulk of the taxes in this country, so please enlighten me.

Ok. The goal is to bring manufacturing jobs back to the United States. Something that would benefit millions of “middle class” Americans. Particularly in “rust belt” communities that were ravaged by NAFTA. Tariffs have pros and cons. The ideal situation is to use the threat of tariffs as leverage to negotiate better trade deals to bolster US manufacturing. Which is probably what will happen. I hope this has helped enlighten you.

 

[E90alex]

Again, I have yet to find a single person that can explain how these proposed tariffs are going to benefit any of us middle class Americans. We already pay the bulk of the taxes in this country, so please enlighten me.

There is no benefit. The middle and lower classes are going to get screwed over even more. This is nothing more than a hefty tax on the 99% to fund tax breaks for the 1%.

Unfortunately a lot of people don’t understand that tariffs are not paid by the originating country but instead by the company importing the goods who will pass it along to consumers because they’re not going to reduce their profits.

 

[NH_Pony_Boy]

Wait! I got this one. Carmakers will either (a) pass the costs on to the buyer, or (b) pass the costs on to the buyer, or (c) pass the costs on to the buyer.

You forgot D.
Try to pass it on to the buyer and go bankrupt as your inventory sita unsold and Kia becomes the biggest brand in America.

 

[bvelderman]

If you can buy now. Tomorrow will be more expensive and it will be the 25 tax on the American people. Tariff = tax. Yes it will affect what you buy from your friendly neighbors. INFLATION will happen. Interest rates will go through the roof. So not only will your Mach e have the tax increase, it will also be more expensive to finance or lease.

In this discussion one forgets how important the cheap Canadian oil & electricity is for the northeast US industries and charging your car. Wait till Canada starts retaliating with electricity taxes - you will see the same downturn in the USA as in Germany due to the disappearance of cheap gas from Russia.

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