Trump's trade war is economic suicide

[Synopsis]

34 minutes ago, pokerplayer said:

Got you covered Syn, I see the Red Baron is busy again today.

 

  pp

 

 Thank You, PokerPlayer, AND The Best Of Your Weekend To You!!! 

 

Yeah, the Poor, Poor Red Rubymeister(s) feel a need to issue Red Ruby Citations for "Display Of Intellectual Speed And Power" for standing with others making actually intelligent and supportable statements that the Poor, Poor Red Rubymeister(s) and their "Volunteer Forces" have the inability to make.

 

                                 

 

              

 

Well, OK, if the Red Rubymeisters want to give me Red Ruby Citations for "Display Of Intellectual Speed And Power' as Badges Of Honor for ME then they can just HAVE AT IT!!!

 

              

 

I am entirely loath to consider what the Red Rubymeister issuance of the Red Ruby Citations indicates of THEIR "Display Of Intellectual Speed And Power"!!!

 

              

[pokerplayer]

A great week end to you as well my friend.

 

  pp

[bostonangler]

A Chicago-area manufacturer is laying off 153 workers and moving to Mexico partly because of Trump's tariffs

 

• Stack-On Products, a storage manufacturing company, will lay off 153 workers at its Chicago-area plants and move those jobs to Mexico.
• Stack-On said that the move is in part due to President Donald Trump's tariffs on steel, aluminum, and some Chinese products.
• The tariffs are driving up the cost of parts used in US products, leading to layoffs and job relocations.

---

President Donald Trump's tariffs are forcing another manufacturer to lay off American workers as the fall out from the president's trade fights continues to grow.

Stack-On Products, a manufacturer of storage products like gun safes and metal cabinets, will lay off 153 workers in their Chicago-area plants and move those operations to its plant in Mexico, according to the Chicago Tribune. The company's two Illinois plants will close on October 12.

Al Fletcher, the human resources director at Stack-On's parent company, told the Tribune that the decision to close the plants was made two months ago. While Fletcher said the plant's unprofitability was a major piece of the reason for the layoffs, the final decision was only made following the imposition of tariffs.

 

"Mr. Trump is part of this," he told the Tribune. 

Stack-On joins a growing group of companies that are either moving operations outside of the US due to the tariffs or laying off workers. Trump's tariffs on metals and Chinese goods hit many intermediate goods, or parts, that US firms then used to manufacture final products. The increased cost of parts forces companies to either accept lower profit margins, raise prices on consumers, or cut costs through moves like layoffs.

Here's just a few other companies that are making a similar move to Stack-On:

• Mid-Continental Nail, the largest US nail producer, laid off 130 workers after steel prices jumped. Additionally, the entire business could shut down over the next few months.
• Element Electronics, a TV manufacturer, plans to lay off 127 workers from its South Carolina factory as "a result of the new tariffs that were recently and unexpectedly imposed on many goods imported from China."
• Brinly-Hardy, an Indiana-based maker of lawn-care equipment, laid off 75 workers due to metal tariffs.
• Harley-Davidson announced that the company will shift production of motorcycles sold in Europe outside of the US. The announcement led Trump to wage an ongoing Twitter campaign against the company.
• https://markets.businessinsider.com/news/stocks/trump-tariffs-trade-war-causes-150-layoffs-at-chicago-manufacturer-2018-8-1027461962

[Sage449]

My folks were staunch dems and that was because of farm subsidy. Which in its way is another government handout. We were small time farmers compared to what's happening today (non-commercial sized), the subsidy was the only way my parents could make it besides each of them working two jobs. And I'm grateful for it. Didn't always agree, but you don't criticize with your mouth full. 

Having worked for some large international companies, it's amazing how much we were/are charged in taxes and tariffs for doing business there and the U.S. didn't reciprocate. Some countries 40% for "helping" them modernize. How about the free or nearly free "handouts" be overwith, level the playing field and renegotiate so we're not always bending over?

Edited August 20, 2018 by Sage449
Spelling

[bostonangler]

US businesses warn Trump the next China tariffs are going to cost Americans from cradle to grave

• U.S. businesses have a message for the Trump administration: new tariffs on $200 billion of Chinese imports will force Americans to pay more for items they use throughout their daily lives.
• Six days of public hearings on the proposed duties of up to 25 percent will start on Monday in Washington as part of President Donald Trump's and the U.S. Trade Representative's efforts to pressure Beijing for sweeping changes to its trade and economic policies.

Published 6:44 AM ET Mon, 20 Aug 2018 Reute

A broad cross-section of U.S. businesses has a message for the Trump administration: new tariffs on $200 billion of Chinese imports will force Americans to pay more for items they use throughout their daily lives, from cradles to coffins.

Six days of public hearings on the proposed duties of up to 25 percent will start on Monday in Washington as part of President Donald Trump's and the U.S. Trade Representative's efforts to pressure Beijing for sweeping changes to its trade and economic policies.

Unlike previous rounds of U.S. tariffs, which sought to shield consumers by targeting Chinese industrial machinery, electronic components and other intermediate goods, thousands of consumer products could be directly hit with tariffs by late September.

 

The $200 billion list targets Chinese seafood, furniture and lighting products, tires, chemicals, plastics, bicycles and car seats for babies. (See the complete list here.)

"USTRs proposed tariffs on an additional $200 billion of Chinese imports dramatically expands the harm to American consumers, workers, businesses, and the economy," the U.S. Chamber of Commerce said in written testimony for the hearing.

The top U.S. business lobbying group said the Trump administration lacks a "coherent strategy" to address China's theft of intellectual property and other harmful trade practices and called for "serious discussions" with Beijing.

Mid-level Trump administration officials and their Chinese counterparts are expected to meet later this week in Washington to discuss their trade dispute. But it is unclear whether the talks will have any effect on the implementation of U.S. tariffs and retaliation by China.

In more than 1,400 written comments submitted to USTR that will be echoed in the hearings, most businesses argued that the tariffs will cause harm and higher costs for products ranging from Halloween costumes and Christmas lights to nuclear fuel inputs, while a small number praised them or asked that they be extended to other products.

Graco Children's Products, a unit of Newell Brands, said tariffs "will have a direct negative impact on our company, American parents and most importantly the safety of American children."

The company said higher prices may prompt more parents to buy car seats, swings and portable play yards on the second-hand market.

"The proposed tariffs may force parents to use unsafe sleeping environments or let children dangerously co-sleep with parents," Graco wrote. The tariff "only causes a children safety issue; it will not convince China to change its policies."

Evenflo Feeding said the tariffs will hit manual breast pumps "and would cause disproportionate economic harm to U.S. interests."

At the other end of the life cycle, Centennial Casket President Douglas Chen said his Plano, Texas-based company relies exclusively on Chinese-made caskets and the tariffs would cause "great loss" and raise costs for "grieving families purchasing caskets for their loved ones at one of the worst times of their life."

The Internet Association, representing companies including Facebook, Amazon.com, and Alphabet, said the tariffs "would cause disproportionate economic harm to American internet companies. The list includes products that impact how internet companies function."

Westinghouse Electric, the leading U.S. nuclear fuel producer, said it relies on China for zirconium and zirconium powders — key inputs for tubes used in nuclear fuel assemblies that it uses at plants in Utah, Pennsylvania, and South Carolina.

There is no U.S. source of zirconium so the tariff would "raise the cost for Westinghouse to manufacture nuclear fuel for U.S. commercial nuclear power plants" and it ultimately "would increase the cost of electricity to a significant percentage of U.S. electricity consumers," the company said in a filing.

Huffy, the largest U.S. bicycle brand, with 4 million Chinese-made bikes sold annually, said a 25 percent tariff poses a "serious threat to the company."

Huffy CEO Bill Smith wrote that the tariffs should have been put in place 20 years ago when Huffy and other U.S. bicycle makers sought to increase the 11 percent U.S. bicycle tariff because of aggressive Chinese imports. When this effort failed, Huffy closed three U.S. plants in 1998 and 1999, terminating 2,000 employees and shifting to Chinese bikes.

"This proposed tariff is too little, too late," Smith wrote, adding that now, a higher tariff would "only create problems" and cost jobs at independent U.S. bicycle dealers.

"There is no other country in Asia or Europe that can provide the volume Huffy requires as China is the largest bicycle producer in the world," he said.

U.S.-China Business Council President Craig Allen, speaking to reporters in Beijing on Monday, said more tariffs could create "grave economic distortions," but that Trump had been very clear about the problems in the trade relationship.

"Chinese officials have been given these suggestions in writing. I think that they know very well what is being asked. And let the negotiations proceed," Allen said, calling for a "surge" in Chinese market opening.

 

What you see isn't happening.

B/A

[bostonangler]

Tennessee manufacturers urge Trump to rescind steel tariffs

A group of Dickson County manufacturers sent a letter to President Donald Trump urging him to rescind the tariffs on imported steel, which they say have impaired their ability to compete with foreign companies. 

Executives from six area companies employing more than 1,000 Tennesseans described the significant price increases on steel, both domestic and imported, that they said are impairing their ability to compete against foreign companies. According to the Aug. 13 letter, steel prices are the highest they have been since 2008 and they have increased by 43 percent since this time last year.

"These employees and our businesses depend on access to competitively priced steel to fabricate our products and compete in a global marketplace," the leaders wrote. "We cannot compete globally when the cost of our most important input has spiked and delivery times are extended."

Trump imposed 25 percent tariffs on imported steel from China, Russia, Japan and Turkey in March and more recently announced similar tariffs on steel from European countries, Canada and Mexico.   

Executives from A-1 Signs, Nashville Wire Products, Onward Manufacturing Co., Stinson Steel, Tennsco and Truform Manufacturing each signed the letter to Trump. 

The Middle Tennessee executives said passing off the higher costs to consumers is difficult because of existing contracts, but also because they risk losing market share. While the tariffs are helping to reduce steel imports, they are boosting imports of steel-made goods, which could end up hurting the steel manufacturers they are designed to protect, they wrote. 

"This not only will negatively impact our companies, but also U.S. consumers who will be faced with higher prices," the executives wrote. "Ultimately, the domestic steel mills will feel the consequences as their customer base shrink."

 

Stuart Speyer, president of Tennsco, said steel costs have gone up as much as 140 percent in the last two years. For the Dickson-based office cabinet maker that employs 700 people, steel comprises more than half of the company's costs on some products. As a result, he has raised his prices for his customers. 

"We can't absorb significant price increases," he said. "We don't have those kind of margins."

Some customers have been more receptive than others, but because they are also in competitive markets, they are likely to explore other options. U.S.-made steel is 68 percent higher than average world export prices and 88 percent higher than steel made in China, according to the executives' letter to Trump.

"There are foreign products that are easily available that they can switch to whenever they want," Speyer said. 

Speyer said it is still too early to determine how the tariffs might affect his workers, but over time, if he cannot retain customers, he will have to reduce his workforce.  

"If you are not competitive, you are going to lose business," he said. "Ultimately, as we  lose business we will have to reduce our employment. We haven't seen the immediate effect, but it will come."

 

 

Truth isn't truth.

B/A

[Indraman]

I have to say that the more I read these so called "economic experts" who are continually screaming, "The Sky is falling", and yet the exact opposite is true, I realize how silly and unimportant they have become.

 

I will admit that when Trump proposed a "Trade War" my first reaction was like many, one of concern. The more that I watch Trump and his skill at negotiating and bargaining, the more I see a long-term path that benefits all in America. Sit back and watch...we will all learn something.

 

 

Indy

[bostonangler]

24 minutes ago, Indraman said:

so called "economic experts"

 

You mean the stories I have posted from business owners who are expressing their concerns?

 

B/A

[yota691]

Washington imposes new tariffs on imports from Turkey and China

 

August 22, 2018 12:11 AM
direct : The US Department of Commerce said it had taken initial action to apply tariffs on some products from six countries, including China and Turkey.

It added in a statement on Tuesday that the new tariff decision includes products of large diameter welding pipes.

Countries that are due to decide on the resolution are Canada, Turkey, China, India, South Korea and Greece.

The statement said that Washington found that the pipeline sold at a price below the fair value of 3.45% to 132.63%.

Officials from China and the United States will meet tomorrow to discuss common trade issues amid hopes from investors to find a solution to the current trade dispute between the world's two largest economies.

 

 

[md11fr8dawg]

The Chinese delegation is headed over here to the US to talk about the tariffs and you can bet they are not coming from a position of strength. No they have had their "gravy train" de-railed and they are not use to this. It won't be much longer before we see some results (positive) from these tariffs (JMHO) . And who knows, we may even get the pastor back from Turkey. We will see how tough this Turkish Communist President is very soon.

[PeaceSign]

23 hours ago, bostonangler said:

 

You mean the stories I have posted from business owners who are expressing their concerns?

 

B/A

 

If a business owner needs cheaper materials then find it elsewhere or stop exporting to the countries that are raping you. 

[bostonangler]

At a rally on Tuesday, U.S. President Donald Trump told a crowd that a Chevy Camaro sports car costs as much as $119,000 in China. He’s wrong.

 

 

“When we make a car, we sell it into China and there’s a 25 percent tariff and that’s just the beginning,” he said in a speech in West Virginia, adding the Camaro costs three-times as much as it sells for in the U.S. “You understand that, right? It’s all taxes, taxes and taxes. We can’t do that anymore.”

 

 

 

Here’s the fact: Only one model of Camaro is sold in China, a coupe with a 2.0-liter turbo engine, according to a spokeswoman for General Motors Co., which makes the car. The vehicle sells for 399,900 yuan ($58,430) in the Asian country, according to the local website of the Detroit-based automaker. That compares with a starting price of $25,905 for a similar Camaro coupe model in the U.S.

Trump made the comments just before a fresh round of tariffs on $16 billion worth of each other’s goods take effect, deepening a trade war between the world’s two biggest economies. Trump is hoping tariffs on Chinese imports would stoke investments in the U.S. rather than low-cost China, supporting domestic demand and creating more American jobs.

 

 

China’s roughly $12 trillion economy has steadily narrowed the gap with the U.S.’s, which is about $19 trillion. China’s gross domestic product is forecast to expand 6.6 percent this year, according to estimates compiled by Bloomberg, which would be the slowest pace since 1990. The U.S. economy is forecast to expand 2.9 percent.

https://www.bloomberg.com/news/articles/2018-08-22/no-mr-trump-a-chevy-camaro-doesn-t-cost-119-000-in-china?utm_source=yahoo&utm_medium=bd&utm_campaign=headline&cmpId=yhoo.headline&yptr=yahoo

 

 

Will someone please help him out with simple facts? He's really looking uninformed.

B/A

[bostonangler]

Does negging make you feel better? It is a bummer to see you've been duped by an idiot. I guess I'd be in a negative mood too if I realized art of the deal was to con people using their hopes and dreams to trick them... It's okay, this can't last forever.

 

B/A 

[umbertino]

2 hours ago, bostonangler said:

Does negging make you feel better? It is a bummer to see you've been duped by an idiot. I guess I'd be in a negative mood too if I realized art of the deal was to con people using their hopes and dreams to trick them... It's okay, this can't last forever.

 

B/A 

 

Hey B/A....Haters will be haters.......The equation to me is : negger hater= coward ...Yep...It's that simple.....

 

As a side note....Last night he overworked himself with my posts  ( just like the last 3 nights...) ....60 negs last night only  in a short period of time...How in the world can he have all those negs to give out I have to wonder....Mysteries.....

[Karsten]

I saw a deal about Jeep CJ clubs in China and couldn't believe what they had to pay for them over there.  They were really proud to own a jeep and did group parades and tours to show them off.

 

Karsten

[umbertino]

23 hours ago, md11fr8dawg said:

The Chinese delegation is headed over here to the US to talk about the tariffs and you can bet they are not coming from a position of strength. No they have had their "gravy train" de-railed and they are not use to this. It won't be much longer before we see some results (positive) from these tariffs (JMHO) . And who knows, we may even get the pastor back from Turkey. We will see how tough this Turkish Communist President is very soon.

 

Erdogan ( Turkish President) happens infact to be a very rightwing dictator...A fascist....He ordered the arrests of thousands of People from various walks of life ( policemen, journalists, teachers, etc)

 

He's just another dirty bastard

 

 

https://en.wikipedia.org/wiki/Recep_Tayyip_Erdoğan

Edited August 23, 2018 by umbertino

[umbertino]

 

He (Erdogan) even changed the Constitution to stay elected  for a very long time...He hates Democracy...

 

[yota691]

Great commercial war drums knocking .. and weapons in billions

07:40 - 23/08/2018

 

 

 

The 
war between the world's two biggest economic powers sparked a war on Thursday after Washington imposed customs duties on Chinese goods worth $ 16 billion, while China reacted to the US escalation in a few minutes. 
The total fee-based goods in both Washington and Beijing reached $ 100 billion, after the second tariff package on the two countries' products came into effect. 
The US administration approved another package on July 6 for a 25 percent fee of $ 34 billion. China's response to the package was swift at the time. 
A third package is expected to come into effect in September and will cost $ 200 billion of Chinese products. 
The escalation comes as Washington hosts US-China talks aimed at ending the trade war between the world's top two economic powers.
 The Chinese Ministry of Commerce accused Washington of "intransigence" in applying the latest tariffs, adding in a brief statement that "China resolutely opposes this and will continue to take necessary countermeasures." The World Trade Organization (WTO), according to Reuters. 
China's total annual exports to the United States exceed $ 500 billion, compared with $ 134 billion in US imports to China. 
World economic experts believe that a $ 100 billion import duty would cut world trade by as much as 0.5 percent.

[yota691]

The United States and Mexico are approaching an agreement on NAFTA

 27 August 2018 01:30 PM
The United States and Mexico will resume talks on NAFTA Monday, as the two countries move closer to removing common trade foes.

The Mexican economy minister told reporters on Sunday that the two sides were likely to reach a common point within hours, but later said work still needed more and negotiations would start again today, Reuters reported.

"They continue to make progress on the negotiations," Edfonso Gugardo said.

Bilateral discussions on NAFTA focused on drafting new rules for the auto industry, the most important aspect the US president has focused on when negotiations on the 24-year-old agreement are being re-established.

For his part, the Foreign Minister of Mexico announced that Canada is likely to return to negotiations once bilateral issues with the United States are resolved.

The NAFTA Convention, which the US president has described as the "catastrophe" of the United States, Canada and Mexico.

Last Saturday, Donald Trump announced that the trade agreement with Mexico was close.

With these developments, the Mexican peso rose against the dollar. By 10:05 am GMT, the Mexican currency rose against its US counterpart by 0.7% to 18.7882 pesos.

[bostonangler]

18 minutes ago, yota691 said:

The United States and Mexico are approaching an agreement on NAFTA

 27 August 2018 01:30 PM
The United States and Mexico will resume talks on NAFTA Monday, as the two countries move closer to removing common trade foes.

The Mexican economy minister told reporters on Sunday that the two sides were likely to reach a common point within hours, but later said work still needed more and negotiations would start again today, Reuters reported.

"They continue to make progress on the negotiations," Edfonso Gugardo said.

Bilateral discussions on NAFTA focused on drafting new rules for the auto industry, the most important aspect the US president has focused on when negotiations on the 24-year-old agreement are being re-established.

For his part, the Foreign Minister of Mexico announced that Canada is likely to return to negotiations once bilateral issues with the United States are resolved.

The NAFTA Convention, which the US president has described as the "catastrophe" of the United States, Canada and Mexico.

Last Saturday, Donald Trump announced that the trade agreement with Mexico was close.

With these developments, the Mexican peso rose against the dollar. By 10:05 am GMT, the Mexican currency rose against its US counterpart by 0.7% to 18.7882 pesos.

 

I hope so he could use a win...

 

B/A

[Pitcher]

US, Mexico reach NAFTA deal; pressure turns to Canada

Previous

1 / 2

 

 

Nex

• Trump and outgoing Mexican President Enrique Pena Nieto said talks with Canada would begin immediately
• The Mexico-US discussions focused on crafting new rules for the automotive industry

WASHINGTON: The United States and Mexico agreed on Monday to overhaul the North American Free Trade Agreement (NAFTA), putting pressure on Canada to agree to the new terms on auto trade and other issues to remain part of the three-nation pact.
US President Donald Trump and outgoing Mexican President Enrique Pena Nieto said talks with Canada would begin immediately, though Trump threatened he could put tariffs on Canadian-made cars if a three-way deal could not be reached.
“I think with Canada, frankly, the easiest we can do is to tariff their cars coming in. It’s a tremendous amount of money and it’s a very simple negotiation. It could end in one day and we take in a lot of money the following day,” Trump said.
Negotiations between the three trade partners have dragged on for more than a year and repeated threats by Trump that he would ditch the 1994 accord have roiled financial markets, putting pressure on the Mexican peso and the Canadian dollar.
The Mexico-US discussions focused on crafting new rules for the automotive industry, which Trump has put at the heart of his drive to rework the pact he has repeatedly described as a “disaster” for American workers.
A spokesman for Canadian Foreign Minister Chrystia Freeland said Canada would continue to negotiate, but would only sign a new agreement that is good for the country.
The United States, Mexico and Canada do more than 1 trillion dollars in trade between them every year.
The announcement of a US-Mexico agreement lifted financial markets. Trump said he would talk to Canadian Prime Minister Justin Trudeau soon. A senior US trade official said there are hopes that a final three-nation accord can be reached by Friday.
Trudeau spoke to Pena Nieto on Sunday and shared their commitment to reaching a successful conclusion of NAFTA “for all three parties” the prime minister’s office said on Monday. Pena Nieto said on Twitter that he had urged Canada to return to the talks with the aim of concluding a three-nation accord “this week.”
The US-Mexico deal would require 75 percent of auto content to be made in the NAFTA region, up from the current level of 62.5 percent, a second US official said. A draft fact sheet specified the content would be made in the United States and Mexico.
The deal also would require 40 percent to 45 percent of auto content to be made by workers earning at least $16 per hour, the second official said.
“We are now inviting the Canadians in as well and hope that we can reach a fair and successful conclusion with them as well,” a senior US trade official told Reuters in an interview.
“There are still issues with Canada but I think they could be resolved very quickly,” the official said.
Trump is expected to send formal notice to the US Congress by the end of the week about his intentions to sign a new trade agreement within 90 days, which would give Mexico’s Pena Nieto time to sign it before he leaves office, the senior US trade official said.
US, Mexican and Canadian stocks opened higher on Monday on optimism about a trade deal.
Mexican stocks jumped 1.4 percent to a seven-month high, while the peso firmed about 1.3 percent against the dollar, heading for its best one-day gain in more than a month.

 

 

https://www.arabnews.com/node/1362676/world

 

 

[bostonangler]

16 minutes ago, Pitcher said:

The deal also would require 40 percent to 45 percent of auto content to be made by workers earning at least $16 per hour, the second official said.

 

This sounds like Mexicans are getting a raise!!! 

 

 

Roughly speaking, the average hourly pay for a member of the United Auto Workers currently ranges from $28 to $38 or so for those hired before September 2007, and between $16 and $20 for workers hired afterward.

 

$2.04 an hour that is the average at Mexican auto plants, says Alex Covarrubias, a lecturer at the University of Sonora in Hermosillo.

 

 

How much will a new car cost?

B/A

[caz1104]

Not necessarily...it states the deal requires that 40-45% of auto content to be made by workers earning at least $16 per hour. That 40-45% mentioned could be American workers

[PeaceSign]

https://www.breitbart.com/big-government/2018/08/28/aluminum-mill-to-bring-550-jobs-back-to-kentucky-town-crippled-by-free-trade/ 

 

There are 20 times as many American jobs that have been created in the last six months thanks to the tariffs on imported foreign goods than jobs that have been lost.   

 

See what happens when you level the playing field, people start opening their mills. GO AMERICA!!!

 

 

 

Edited August 29, 2018 by PeaceSign

[bostonangler]

Trump's latest trade deal will hurt car buyers

Get ready for a Trump bump in car prices.

As U.S. negotiators close in on a new trade deal with Mexico and Canada, they appear committed to new rules on car production that will require costlier components, which in turn would raise prices. Further provisions would allow for new tariffs on some imported cars that could boost sticker prices by thousands of dollars.

The new rules would require more American-made content in cars imported from Canada and Mexico, in exchange for allowing those products to enter the U.S. duty-free. Another measure would raise the portion of a car that must be built by workers earning relatively high wages. Cars coming from Mexico and Canada that don’t meet those requirements will be subject to a 2.5% tariff, while cars imported from other countries could face tariffs as high as 25%.

The protectionist measures are meant to safeguard U.S. manufacturing jobs. But they come at a cost to consumers. “At the least, the new rules will raise the price of autos for U.S. consumers,” writes Chad Bown of the Petersen Institute for International Economics. “The North American auto sector could suffer an even worse blow if the Trump administration imposes new tariffs or quantitative limits on autos and parts not covered by the new deal.”

Of the 17.5 million cars sold in the United States last year, about 11 million were produced in the U.S. That leaves 8.7 million imports. Of the imports, Canada and Mexico each account for about 1.9 million. Popular models made in Mexico include the Ford Fusion, GMC Terrain, Jeep Compass, Honda HR-V and Volkswagen Jetta. Canada produces the Chrysler Pacifica, Ford Edge, Chevy Equinox, Cadillac XTS and Lexus RX450h, among others.

 

The new version of the Toyota RAV4, made in Canada, could cost more on account of President Trump.

More

The new rules would raise the required amount of North American content in a tariff-free car from 62.5% to 75%. Another rule would require at least 70% of the steel, glass and aluminum in a car to come from North American sources. And a wage provision would raise the automaker’s portion of assembly-line workers earning at least $16 per hour from 30% now to 40% for cars, and 45% for SUVs.

 

It’s not yet clear how much the new rules would add to the cost of imported cars, because we don’t know how automakers would react to the changes. If complying with the new rules would add more than 2.5% to the cost, then it would make sense to simply pay the 2.5% tariff rather than spending more than that to eliminate the tariff. If manufacturers passed all of that onto consumers in the form of higher prices, the starting sticker price of a Toyota RAV4, for example, would jump from $24,660 to $25,277.

Price hikes could be considerably steeper on some models. In addition to the new trade deal with Canada and Mexico, Trump is considering tariffs of 25% on all other imported cars. That amounts to roughly 3.8 million vehicles including many Audi, BMW and Mercedes models built in Europe, Toyota Priuses built in Japan, Hyundais built in Korea, Buicks built in China, and others. With a 25% tariff, the starting price of an Audi A4 would soar from $36,975 to $46,219.

Trump’s 25% tariff on select imports would cause major disruption in the industry. The Center for Automotive Research estimates that a 25% tariff on auto imports, excluding Canada and Mexico, would raise the cost of all imported vehicles by an average of $3,980 and the price of all vehicles, including those built in the United States, by $2,450. The reason all prices would rise is that forcing up the price of some imports allows competitors to raise prices as well, even if they don’t have to pay the tariff.

 

The Audi A4, made in Germany, could end up subject to a new 25% tariff.

More

Higher prices normally dent sales, and the Center for Automotive Research predicts that a 25% tariff on non-North American imports would reduce sales of all new cars by about 1.2 million units per year. That would kill 197,000 American jobs, which is obviously the opposite of what Trump says he is trying to accomplish.

Protectionist tariffs don’t necessarily protect jobs because government bureaucrats imposing new rules can’t predict how companies will react. “Some companies may rework their supply chains to meet the new rules,” says Bown. “But perversely, a second possibility is that Trump’s new regulations will be so costly that companies decide to source even less content from North America. To keep car prices at levels consumers are willing to pay, some automakers may buy parts from Asia or Europe, where they are cheaper.”

Automakers also have to keep the cost of U.S. production under control if they want to export those vehicles to other countries, where they have to compete with other exports not subject to Trump-style government-imposed price hikes. BMW, for instance, exports SUVs from its factory in South Carolina to China, and if the cost of producing in the U.S. gets too high, they could relocate that production elsewhere.

The new trade provisions with Canada and Mexico still aren’t final. Once the three countries fully agree, Congress has to approve any changes, and that isn’t likely until late this year, at the earliest. If Democrats gain control of the House of Representatives in the November midterm elections, as seems possible, Congress may never approve of the controversial Trump trade maneuver. For consumers, the breakdown lane may not be a bad place to be.

https://finance.yahoo.com/news/trumps-latest-trade-deal-will-hurt-car-buyers-185429094.html

 

 

I think I'm going to have to buy some stock in the auto parts stores... People are going to start repairing their cars again like they did in 2008 - 2014... JMHO

B/A

Edited August 30, 2018 by bostonangler