Find a grown up and ask them why Japan makes the majority of the cars it sells in America in America.
You don't know a damn thing about tariffs beyond that your cult told you to pretend you hate them.
you are not telling the full story.
the tariffs will attach to parts too. These US-made cars you are talking about are largely assembled in the US using parts made in other countries. Very few cars are made in america using all american parts. So those cars will be hit by the tariffs also.
these tariffs are brutal and come from a fantasy place in the right wing imagination where companies can build supply chains and factories and get them going in weeks or maybe months.
This post was edited 2 minutes after it was posted.
ok let's check the stock market to see how it feels about the auto tariffs
Today:
GM -7%
Ford -3%
Lear (car parts) -7%
Gee man it seems to me that these tariffs are not being welcomed by the Michigan-based auto industry.
If you think extremely short term stock prices are a useful indicator of the effectiveness of economic policy you are too stupid to be taken seriously.
Tariffs aren't intended to be instantly effective you moran.
The auto tariffs have nothing to do with industrial policy. The tariffs are not just on finished autos. They are also on all foreign made parts. The supply chain for auto parts extends around the world. And many parts of a vehicle will cross the US/Mexico border several times as they are passed from one manufacturer to another. Relocating the entire supply chain for automotive parts to the US is impossible because it is cheaper to pay the tariff than to abandon an existing facility, build a new one in the US and then hire US workers who will be in short supply due to Trump's war on immigrants and US demographic decline (i.e. low birth rate). And most auto parts are produced for the global market. There is no difference between suspension bushings used in a US vehicle or a European vehicle or a Brazilian vehicle. The US market is the largest auto market in the world, but it only makes up 15% of worldwide auto sales. So for parts, the manufacturers are just going to stay put and make US consumers eat the tariffs. And those tariffs will hit vehicles assembled in the US. So, the US automakers will see profits vanish just as Trump is expecting them to shift production back to the US from Mexico (which was ok under Trump's USMC until he changed his mind).
There could be some shift in the assembly of vehicles. But that has actually already happened with most of the manufacturers. BMW has a huge assembly facility in South Carolina. Toyota has multiple assembly plants across the southern US. What will probably happen instead is that US manufacturers will face retaliatory tariffs on their exports. That will hurt the Big Three and help foreign auto makers.
But the real reason for the tariffs is to raise revenue to clear way for massive tax cuts for the billionaires and corporations. It is simply a wealth transfer. And people will be forced to finance the tariffs in their auto loans which will generate profits for big banks. The tariffs will not just hit new vehicles. The price of used vehicles will also go up as people are priced out of new vehicles and are forced to drop down into the used market. And this is all happening just as the auto market has finally recovered from COVID supply chain disruptions. Automakers have been offering big incentives/rebates for their vehicles as supply has finally caught up with demand. But as soon as consumers finally get a break, they are going to see massive price increases across the board in the auto industry. And you will also see a rise in insurance rates as insurers are now going to be insuring more expensive vehicles.
Japanese cars started to be built here because of quotas and for PR reasons. Additional factors are
An unrivaled consumer market; A world-class system of higher education; A skilled and productive workforce; An entrepreneurial culture of innovation and risk-taking; A transparent regulatory environment; The world’s largest venture capital and private equity market
and TAX BREAKS.
Even with that, it still took decades for the Japanese to produce(assemble) most of their cars in the US and there are dozens of components still built all over the world.
only a simple person thinks the only reason a foreign company would set up shop here is …der, der tariffs.
Thank you , Roy ! You gave us a great breakdown of the upcoming failure of Trump’s tariff war !! I would ask you to send it to the White House; but you need to edit it down to a 4th grade level !!
The auto tariffs have nothing to do with industrial policy. The tariffs are not just on finished autos. They are also on all foreign made parts. The supply chain for auto parts extends around the world. And many parts of a vehicle will cross the US/Mexico border several times as they are passed from one manufacturer to another. Relocating the entire supply chain for automotive parts to the US is impossible because it is cheaper to pay the tariff than to abandon an existing facility, build a new one in the US and then hire US workers who will be in short supply due to Trump's war on immigrants and US demographic decline (i.e. low birth rate). And most auto parts are produced for the global market. There is no difference between suspension bushings used in a US vehicle or a European vehicle or a Brazilian vehicle. The US market is the largest auto market in the world, but it only makes up 15% of worldwide auto sales. So for parts, the manufacturers are just going to stay put and make US consumers eat the tariffs. And those tariffs will hit vehicles assembled in the US. So, the US automakers will see profits vanish just as Trump is expecting them to shift production back to the US from Mexico (which was ok under Trump's USMC until he changed his mind).
There could be some shift in the assembly of vehicles. But that has actually already happened with most of the manufacturers. BMW has a huge assembly facility in South Carolina. Toyota has multiple assembly plants across the southern US. What will probably happen instead is that US manufacturers will face retaliatory tariffs on their exports. That will hurt the Big Three and help foreign auto makers.
But the real reason for the tariffs is to raise revenue to clear way for massive tax cuts for the billionaires and corporations. It is simply a wealth transfer. And people will be forced to finance the tariffs in their auto loans which will generate profits for big banks. The tariffs will not just hit new vehicles. The price of used vehicles will also go up as people are priced out of new vehicles and are forced to drop down into the used market. And this is all happening just as the auto market has finally recovered from COVID supply chain disruptions. Automakers have been offering big incentives/rebates for their vehicles as supply has finally caught up with demand. But as soon as consumers finally get a break, they are going to see massive price increases across the board in the auto industry. And you will also see a rise in insurance rates as insurers are now going to be insuring more expensive vehicles.
Precious Roy always brings high quality posts. It makes me do a double take to make sure I am still on letsrun message board.
We do some biz into automotive plants in US,Canada and Mexico and he nails it. It is a train wreck. Price increase letters are flying as much as 70%! (that one was from Europe to Us)
We need to migrate away from the belief that Trump is mistaken in his tariff beliefs and start addressing that he wants to wreck our economy. That’s the goal.
If you think extremely short term stock prices are a useful indicator of the effectiveness of economic policy you are too stupid to be taken seriously.
Tariffs aren't intended to be instantly effective you moran.
The auto tariffs have nothing to do with industrial policy. The tariffs are not just on finished autos. They are also on all foreign made parts. The supply chain for auto parts extends around the world. And many parts of a vehicle will cross the US/Mexico border several times as they are passed from one manufacturer to another. Relocating the entire supply chain for automotive parts to the US is impossible because it is cheaper to pay the tariff than to abandon an existing facility, build a new one in the US and then hire US workers who will be in short supply due to Trump's war on immigrants and US demographic decline (i.e. low birth rate). And most auto parts are produced for the global market. There is no difference between suspension bushings used in a US vehicle or a European vehicle or a Brazilian vehicle. The US market is the largest auto market in the world, but it only makes up 15% of worldwide auto sales. So for parts, the manufacturers are just going to stay put and make US consumers eat the tariffs. And those tariffs will hit vehicles assembled in the US. So, the US automakers will see profits vanish just as Trump is expecting them to shift production back to the US from Mexico (which was ok under Trump's USMC until he changed his mind).
There could be some shift in the assembly of vehicles. But that has actually already happened with most of the manufacturers. BMW has a huge assembly facility in South Carolina. Toyota has multiple assembly plants across the southern US. What will probably happen instead is that US manufacturers will face retaliatory tariffs on their exports. That will hurt the Big Three and help foreign auto makers.
But the real reason for the tariffs is to raise revenue to clear way for massive tax cuts for the billionaires and corporations. It is simply a wealth transfer. And people will be forced to finance the tariffs in their auto loans which will generate profits for big banks. The tariffs will not just hit new vehicles. The price of used vehicles will also go up as people are priced out of new vehicles and are forced to drop down into the used market. And this is all happening just as the auto market has finally recovered from COVID supply chain disruptions. Automakers have been offering big incentives/rebates for their vehicles as supply has finally caught up with demand. But as soon as consumers finally get a break, they are going to see massive price increases across the board in the auto industry. And you will also see a rise in insurance rates as insurers are now going to be insuring more expensive vehicles.
The auto tariffs have nothing to do with industrial policy. The tariffs are not just on finished autos. They are also on all foreign made parts. The supply chain for auto parts extends around the world. And many parts of a vehicle will cross the US/Mexico border several times as they are passed from one manufacturer to another. Relocating the entire supply chain for automotive parts to the US is impossible because it is cheaper to pay the tariff than to abandon an existing facility, build a new one in the US and then hire US workers who will be in short supply due to Trump's war on immigrants and US demographic decline (i.e. low birth rate). And most auto parts are produced for the global market. There is no difference between suspension bushings used in a US vehicle or a European vehicle or a Brazilian vehicle. The US market is the largest auto market in the world, but it only makes up 15% of worldwide auto sales. So for parts, the manufacturers are just going to stay put and make US consumers eat the tariffs. And those tariffs will hit vehicles assembled in the US. So, the US automakers will see profits vanish just as Trump is expecting them to shift production back to the US from Mexico (which was ok under Trump's USMC until he changed his mind).
There could be some shift in the assembly of vehicles. But that has actually already happened with most of the manufacturers. BMW has a huge assembly facility in South Carolina. Toyota has multiple assembly plants across the southern US. What will probably happen instead is that US manufacturers will face retaliatory tariffs on their exports. That will hurt the Big Three and help foreign auto makers.
But the real reason for the tariffs is to raise revenue to clear way for massive tax cuts for the billionaires and corporations. It is simply a wealth transfer. And people will be forced to finance the tariffs in their auto loans which will generate profits for big banks. The tariffs will not just hit new vehicles. The price of used vehicles will also go up as people are priced out of new vehicles and are forced to drop down into the used market. And this is all happening just as the auto market has finally recovered from COVID supply chain disruptions. Automakers have been offering big incentives/rebates for their vehicles as supply has finally caught up with demand. But as soon as consumers finally get a break, they are going to see massive price increases across the board in the auto industry. And you will also see a rise in insurance rates as insurers are now going to be insuring more expensive vehicles.
Precious Roy always brings high quality posts. It makes me do a double take to make sure I am still on letsrun message board.
We do some biz into automotive plants in US,Canada and Mexico and he nails it. It is a train wreck. Price increase letters are flying as much as 70%! (that one was from Europe to Us)
We need to migrate away from the belief that Trump is mistaken in his tariff beliefs and start addressing that he wants to wreck our economy. That’s the goal.
wrecking the economy isn't trump's goal...he simply lives in a fantasy land, where countries get rich on low margin manufacturing and high capital businesses can simply build a new factory wherever it wants with only a little disruption.
when in reality, those days are gone. Low margin manufacturing stopped making nations rich 20+ years ago.
Trump thinks about the world on a 10th grade level...zero sum, simple, black and white, and then puts a 'the past was far better than the present' filter over it all.
It all comes from right wing talk radio - where they talk all day about 'common sense' solutions that are far far too simple. But make sense to the unsophisticated.
This post was edited 47 seconds after it was posted.
If you think extremely short term stock prices are a useful indicator of the effectiveness of economic policy you are too stupid to be taken seriously.
Tariffs aren't intended to be instantly effective you moran.
The auto tariffs have nothing to do with industrial policy. The tariffs are not just on finished autos. They are also on all foreign made parts. The supply chain for auto parts extends around the world. And many parts of a vehicle will cross the US/Mexico border several times as they are passed from one manufacturer to another. Relocating the entire supply chain for automotive parts to the US is impossible because it is cheaper to pay the tariff than to abandon an existing facility, build a new one in the US and then hire US workers who will be in short supply due to Trump's war on immigrants and US demographic decline (i.e. low birth rate). And most auto parts are produced for the global market. There is no difference between suspension bushings used in a US vehicle or a European vehicle or a Brazilian vehicle. The US market is the largest auto market in the world, but it only makes up 15% of worldwide auto sales. So for parts, the manufacturers are just going to stay put and make US consumers eat the tariffs. And those tariffs will hit vehicles assembled in the US. So, the US automakers will see profits vanish just as Trump is expecting them to shift production back to the US from Mexico (which was ok under Trump's USMC until he changed his mind).
There could be some shift in the assembly of vehicles. But that has actually already happened with most of the manufacturers. BMW has a huge assembly facility in South Carolina. Toyota has multiple assembly plants across the southern US. What will probably happen instead is that US manufacturers will face retaliatory tariffs on their exports. That will hurt the Big Three and help foreign auto makers.
But the real reason for the tariffs is to raise revenue to clear way for massive tax cuts for the billionaires and corporations. It is simply a wealth transfer. And people will be forced to finance the tariffs in their auto loans which will generate profits for big banks. The tariffs will not just hit new vehicles. The price of used vehicles will also go up as people are priced out of new vehicles and are forced to drop down into the used market. And this is all happening just as the auto market has finally recovered from COVID supply chain disruptions. Automakers have been offering big incentives/rebates for their vehicles as supply has finally caught up with demand. But as soon as consumers finally get a break, they are going to see massive price increases across the board in the auto industry. And you will also see a rise in insurance rates as insurers are now going to be insuring more expensive vehicles.
Your first sentence was so breathtakingly stupid I didn't bother to read rest.
The point of the tariffs is to bring that industrial production back into the US whether it's parts or the final assembly.
The fact that Japan has factories all over the US suggests that this works.
If you anti tariff zealots had your way 100% of manufacturing base would be off shored.
Precious Roy always brings high quality posts. It makes me do a double take to make sure I am still on letsrun message board.
We do some biz into automotive plants in US,Canada and Mexico and he nails it. It is a train wreck. Price increase letters are flying as much as 70%! (that one was from Europe to Us)
We need to migrate away from the belief that Trump is mistaken in his tariff beliefs and start addressing that he wants to wreck our economy. That’s the goal.
wrecking the economy isn't trump's goal...he simply lives in a fantasy land, where countries get rich on low margin manufacturing and high capital businesses can simply build a new factory wherever it wants with only a little disruption.
when in reality, those days are gone. Low margin manufacturing stopped making nations rich 20+ years ago.
Trump thinks about the world on a 10th grade level...zero sum, simple, black and white, and then puts a 'the past was far better than the present' filter over it all.
It all comes from right wing talk radio - where they talk all day about 'common sense' solutions that are far far too simple. But make sense to the unsophisticated.
You whine about the decimation of the middle class yet you've never once given a moment's thought to how it happened...
The auto tariffs have nothing to do with industrial policy. The tariffs are not just on finished autos. They are also on all foreign made parts. The supply chain for auto parts extends around the world. And many parts of a vehicle will cross the US/Mexico border several times as they are passed from one manufacturer to another. Relocating the entire supply chain for automotive parts to the US is impossible because it is cheaper to pay the tariff than to abandon an existing facility, build a new one in the US and then hire US workers who will be in short supply due to Trump's war on immigrants and US demographic decline (i.e. low birth rate). And most auto parts are produced for the global market. There is no difference between suspension bushings used in a US vehicle or a European vehicle or a Brazilian vehicle. The US market is the largest auto market in the world, but it only makes up 15% of worldwide auto sales. So for parts, the manufacturers are just going to stay put and make US consumers eat the tariffs. And those tariffs will hit vehicles assembled in the US. So, the US automakers will see profits vanish just as Trump is expecting them to shift production back to the US from Mexico (which was ok under Trump's USMC until he changed his mind).
There could be some shift in the assembly of vehicles. But that has actually already happened with most of the manufacturers. BMW has a huge assembly facility in South Carolina. Toyota has multiple assembly plants across the southern US. What will probably happen instead is that US manufacturers will face retaliatory tariffs on their exports. That will hurt the Big Three and help foreign auto makers.
But the real reason for the tariffs is to raise revenue to clear way for massive tax cuts for the billionaires and corporations. It is simply a wealth transfer. And people will be forced to finance the tariffs in their auto loans which will generate profits for big banks. The tariffs will not just hit new vehicles. The price of used vehicles will also go up as people are priced out of new vehicles and are forced to drop down into the used market. And this is all happening just as the auto market has finally recovered from COVID supply chain disruptions. Automakers have been offering big incentives/rebates for their vehicles as supply has finally caught up with demand. But as soon as consumers finally get a break, they are going to see massive price increases across the board in the auto industry. And you will also see a rise in insurance rates as insurers are now going to be insuring more expensive vehicles.
If you anti tariff zealots had your way 100% of manufacturing base would be off shored.
wild seeing a guy who considers himself a conservative mocking those who think government should for the most part stay out of trade policy.
We have always been at war with Eastasia.
what a world trump has made.
This post was edited 48 seconds after it was posted.
wrecking the economy isn't trump's goal...he simply lives in a fantasy land, where countries get rich on low margin manufacturing and high capital businesses can simply build a new factory wherever it wants with only a little disruption.
when in reality, those days are gone. Low margin manufacturing stopped making nations rich 20+ years ago.
Trump thinks about the world on a 10th grade level...zero sum, simple, black and white, and then puts a 'the past was far better than the present' filter over it all.
It all comes from right wing talk radio - where they talk all day about 'common sense' solutions that are far far too simple. But make sense to the unsophisticated.
You whine about the decimation of the middle class yet you've never once given a moment's thought to how it happened...
the middle class has not been decimated. It is getting smaller, but only because its members have for decades been elevated into the upper middle class. That is not a problem, that is a good thing.
Precious Roy always brings high quality posts. It makes me do a double take to make sure I am still on letsrun message board.
We do some biz into automotive plants in US,Canada and Mexico and he nails it. It is a train wreck. Price increase letters are flying as much as 70%! (that one was from Europe to Us)
We need to migrate away from the belief that Trump is mistaken in his tariff beliefs and start addressing that he wants to wreck our economy. That’s the goal.
wrecking the economy isn't trump's goal...he simply lives in a fantasy land, where countries get rich on low margin manufacturing and high capital businesses can simply build a new factory wherever it wants with only a little disruption.
when in reality, those days are gone. Low margin manufacturing stopped making nations rich 20+ years ago.
Trump thinks about the world on a 10th grade level...zero sum, simple, black and white, and then puts a 'the past was far better than the present' filter over it all.
It all comes from right wing talk radio - where they talk all day about 'common sense' solutions that are far far too simple. But make sense to the unsophisticated.
I think the intentional tanking of the US economy is part of a larger project for the tech billionaires, who at this point may have more control over the Trump administration than anyone else, including Trump. The tech billionaires want to take down the dollar as the world's reserve currency and replace it with crypto currencies. Tariffs that reduce imports will devalue the dollar. A recession will spur the Fed to drop interest rates, which also devalues the dollar.
This is really the only way crypto has a future. The original idea for crypto currency was to create a currency that was not tied to any government and could be used in international trade to avoid the costs of changing money and the fluctuations of each country's currency. That never panned out because the value of crypto currencies is many times more volatile than even the most volatile currency on the market. Then, crypto basically became just a high risk gambling den with people betting huge sums on whether other people would bet huge sums on a particular crypto currency. There is a finite number of investors around the world who are willing to do that. And even with the advent of ETFs for bitcoin, the price has just waffled.
So, getting everyone to take their money out of cash reserves in USD and move it into crypto is the only way there will ever be any growth in crypto. Killing off the dollar is the way that could happen.
The White House is exploring a controversial plan to use U.S. gold reserves for Bitcoin purchases, possibly transforming the U.S. into a major player in the cryptocurrency market. This bold strategy, tied to the proposed Bitc...
wrecking the economy isn't trump's goal...he simply lives in a fantasy land, where countries get rich on low margin manufacturing and high capital businesses can simply build a new factory wherever it wants with only a little disruption.
when in reality, those days are gone. Low margin manufacturing stopped making nations rich 20+ years ago.
Trump thinks about the world on a 10th grade level...zero sum, simple, black and white, and then puts a 'the past was far better than the present' filter over it all.
It all comes from right wing talk radio - where they talk all day about 'common sense' solutions that are far far too simple. But make sense to the unsophisticated.
I think the intentional tanking of the US economy is part of a larger project for the tech billionaires, who at this point may have more control over the Trump administration than anyone else, including Trump. The tech billionaires want to take down the dollar as the world's reserve currency and replace it with crypto currencies. Tariffs that reduce imports will devalue the dollar. A recession will spur the Fed to drop interest rates, which also devalues the dollar.
This is really the only way crypto has a future. The original idea for crypto currency was to create a currency that was not tied to any government and could be used in international trade to avoid the costs of changing money and the fluctuations of each country's currency. That never panned out because the value of crypto currencies is many times more volatile than even the most volatile currency on the market. Then, crypto basically became just a high risk gambling den with people betting huge sums on whether other people would bet huge sums on a particular crypto currency. There is a finite number of investors around the world who are willing to do that. And even with the advent of ETFs for bitcoin, the price has just waffled.
So, getting everyone to take their money out of cash reserves in USD and move it into crypto is the only way there will ever be any growth in crypto. Killing off the dollar is the way that could happen.
— I mean, I don’t care which party you support. Most of them are pretty awful, and the system isn’t working very well to serve the people.
— It would be great to have a real “Mr. Smith Goes to Washington” type, or at least as close as you could get to that in the real world. Someone like that could probably get enough competent people on board to at least make a dent in some of the problems.
Republicans in 2015: We have a better idea. How about somebody who is about as far away from your ideal as you can imagine?
Me then, and me now: No, that doesn’t seem good. This all seems terrible in fact. We now have somebody who is even worse. And all those people who were bad before? A lot of them are starting to act worse now too, because it’s an accelerating race to the bottom.
Trump supporters: Oh, you say something bad about our guy because you must love all the other politicians, and you must support the dumbest of the ideas they can come up with.
wrecking the economy isn't trump's goal...he simply lives in a fantasy land, where countries get rich on low margin manufacturing and high capital businesses can simply build a new factory wherever it wants with only a little disruption.
when in reality, those days are gone. Low margin manufacturing stopped making nations rich 20+ years ago.
Trump thinks about the world on a 10th grade level...zero sum, simple, black and white, and then puts a 'the past was far better than the present' filter over it all.
It all comes from right wing talk radio - where they talk all day about 'common sense' solutions that are far far too simple. But make sense to the unsophisticated.
I think the intentional tanking of the US economy is part of a larger project for the tech billionaires, who at this point may have more control over the Trump administration than anyone else, including Trump. The tech billionaires want to take down the dollar as the world's reserve currency and replace it with crypto currencies. Tariffs that reduce imports will devalue the dollar. A recession will spur the Fed to drop interest rates, which also devalues the dollar.
This is really the only way crypto has a future. The original idea for crypto currency was to create a currency that was not tied to any government and could be used in international trade to avoid the costs of changing money and the fluctuations of each country's currency. That never panned out because the value of crypto currencies is many times more volatile than even the most volatile currency on the market. Then, crypto basically became just a high risk gambling den with people betting huge sums on whether other people would bet huge sums on a particular crypto currency. There is a finite number of investors around the world who are willing to do that. And even with the advent of ETFs for bitcoin, the price has just waffled.
So, getting everyone to take their money out of cash reserves in USD and move it into crypto is the only way there will ever be any growth in crypto. Killing off the dollar is the way that could happen.
I think tech billionaires think the end of the dollar is simply inevitable no matter what, so they want to firm up the value of crypto in advance of the great collapse. Trump is indeed a tool for them, but the collapse of the dollar is not the goal...the goal is firming up crypto before the crash.
This post was edited 23 seconds after it was posted.
Precious Roy always brings high quality posts. It makes me do a double take to make sure I am still on letsrun message board.
I suppose if you enjoy reading long posts evolving around fantasy. I could point out a number of inaccuracies in the core principles here, of which he elaborates to some theoretical conclusion …but I thought it best to keep it simple with this glaring lie.
There has never been a War on Immigrants and never will be. Once he understands immigration policy, and then reads Trumps incredible best seller, then he will be able to speak truth to power as MAGA does.
You whine about the decimation of the middle class yet you've never once given a moment's thought to how it happened...
the middle class has not been decimated. It is getting smaller, but only because its members have for decades been elevated into the upper middle class. That is not a problem, that is a good thing.
