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Trump Administration Tariffs Could Boost Car Prices, Limit Choices
Car and Driver ^ | 06/22/2018 | BY DAVID MULLER

Posted on 06/22/2018 8:31:43 AM PDT by SeekAndFind

The Trump administration’s recently announced 25 percent tariff on myriad China-made goods—including vehicles—would add a levy of approximately $8250 to the price of a Buick Envision crossover. That’s 25 percent of the 2019 model’s $32,990 starting price. Whether that increase is reflected in full on the sticker price come July 6, when the tariffs are set to take effect, is totally up to General Motors. The automaker would not provide detail on any potential financial impact of the tariff; a spokesperson said the company is assessing the situation.

The Chinese tariffs could still be adjusted before July 6. But as it stands, the United States Trade Representative (USTR) is set to put the 25 percent duty on $50 billion worth of goods made in China, affecting industries ranging from aerospace to industrial materials but excluding more commonly bought consumer goods such as televisions and cellular phones. President Donald Trump has also threatened to pursue another $200 billion in tariffs on Chinese goods.

While China-sourced vehicles of all kinds are affected by the $50 billion in levies announced Friday, there remain few passenger vehicles sent from that market to the United States. The Envision is a primary example, but it isn’t one of GM’s higher-volume vehicles. The automaker delivered 41,040 Envisions in the U.S. last year, compared with 290,458 units of the mechanically similar Chevrolet Equinox and 123,506 units of the larger Chevrolet Traverse. GM is building the Envision in China primarily for sale in China; it sold 210,000 Envisions there last year. (Such a tariff would hit China-built models such as the slow-selling Cadillac CT6 plug-in hybrid and the long-wheelbase Volvo S60 Inscription—which start at $76,090 and $37,945—even harder.)

Ford plans to build its next-generation Focus in China, and so far plans call for the eventual import

(Excerpt) Read more at caranddriver.com ...


TOPICS: Business/Economy; Society
KEYWORDS: cars; tariffs
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To: davidb56

BTW its the auto parts going into our cars that have a whole lot to do with poor reliability. Subaru Builds some models in the USA with mostly Japanese components, and they are pretty reliable. They do sub out some parts, but under strict QC and quality materials. So give us the tariffs and improve the quality of our products.


21 posted on 06/22/2018 9:03:27 AM PDT by davidb56
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To: SeekAndFind

Until the other nations give in, and end their tariff and non-tariff restrictions on U.S. exports, where Trump will then lower ours.

We have seen from even before NAFTA “negotiations” on “free trade” have not produced RECIPRICAL free trade, and thereby not worked in the U.S. interest. They have instead cartelized special interests in the negotiaing countries, with each country protecting something, and making trade offs with each other over that. That has been a losing proposition for U.S. exports. It not only has not given is any advantages in trade, it has not even been reciprocal in terms of providing proportional interest.

Let me make a case about autos.

What is the rate of Japanese impport of American cars and American cars made in Japan, versus Japanese cars imported to here or made here? Autos have been a losing proposition for us with Japan. We could say to Japan that we will not limit to a certain number the cars imported from Japan or made here by Japanese companies. Instead we will allow Japanese automakers to either import to here or make here cars equalling a percantage of the U.S. market equal to the percentage of the Japanese market that U.S. cars have. That would be reciprocity proportionate to each market.


22 posted on 06/22/2018 9:03:29 AM PDT by Wuli
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To: robroys woman

And Honda’s come from Ohio.


23 posted on 06/22/2018 9:07:00 AM PDT by piytar (If it was not for double standards, the Democrats and the left would have NO standards.)
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To: SeekAndFind

The consequence of not taking action is to ultimately have no auto industry in the USA. Look at Australia. GM closed production in Australia in favor of China.

https://www.autoblog.com/2017/10/20/the-last-holden-gm-closes-plant-ends-australia-auto-production/

The US won World War II because it had a manufacturing base that could be converted to supplying war equipment. Clothing, vehicles, aircraft, munitions, ships, tires, steel, aluminum. Today the nation does not have the manufacturing base to cloth even the military, much less the population. Losing the textile business supporting the apparel industry means our nation has no domestic fabric for parachutes, vehicle seat covers, tarps, sleeping bags, blankets, tents, etc. Lose the auto industry and there will be no factories in which to build jeeps, trucks, and other vehicles to support a war. Completely eliminate steel and aluminum production in the US and there will be no raw materials to make vehicles, ships, aircraft, and guns. Eliminate the 2nd amendment and the domestic firearms industry goes away which means no factories to make guns and ammunition in wartime.

Being self sufficient for food, clothing, and raw materials for production means the nation is not vulnerable to having overseas supplies cut by blockade or a hostile nation. Consider what would happen if a hostile China cut off the supply of manufactured goods to the US today. The nation does not have the manufacturing capacity to produce its own clothing, electronics, steel, and many other essential consumer and industrial items it gets from China.

China is at war with the US. Its goal is to pick off industries one by one. The apparel, textile, furniture, and much of the consumer products businesses are gone. It is now going after food, pharmaceuticals, steel, electronics, aircraft, and auto industries. If we do nothing, those industries will be gone in 10 years.

Trump, the Russians, and the Chinese understand the national security implications of supporting through tariffs the domestic industries critical for national defense. The Congresscritters, journalists, and CEO’s who are against Trump’s trade policy are apparently not concerned about national security.

Consider this. With our industrial base today, we could not fight World War II. Consider the implications for a 21st century war against China or Russia.


24 posted on 06/22/2018 9:10:45 AM PDT by Soul of the South (The past is gone and cannot be changed. Tomorrow can be a better day if we work on it.)
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To: piytar

“And Honda’s come from Ohio.”

How much of the content come from the US? If the parts are imported, and most the assembly is performed by robots, the US worker still loses. Not to mention the national security implications.


25 posted on 06/22/2018 9:12:26 AM PDT by Soul of the South (The past is gone and cannot be changed. Tomorrow can be a better day if we work on it.)
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To: SeekAndFind

More mass media Anti President Trump paranoia.


26 posted on 06/22/2018 9:14:59 AM PDT by Retvet (Retvet)
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To: SeekAndFind

So then cars made in the US would be more affordable than ones made in China or Germany? What’s the problems with that?


27 posted on 06/22/2018 9:15:39 AM PDT by TruthWillWin ([MSM])
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To: SeekAndFind

Limit choices.

SNORT.

Thanks to endless regulations the nanny state has been limiting choices for decades.


28 posted on 06/22/2018 9:16:31 AM PDT by mewzilla (Has the FBI been spying on members of Congress?)
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To: DannyTN

Perfect.

The market will respond. Nothing says parts now made in China can’t be made in the US like they used to be before we started getting screwed on trade.


29 posted on 06/22/2018 9:16:33 AM PDT by bigbob (Trust Sessions. Trust the Plan.)
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To: SeekAndFind

By imposing the tariffs, that would require manufacturers in the U.S. to rely on American parts to manufacture their vehicles rather than import them from China, Mexico and other areas.
The auto manufacturing industry as well as other manufacturing within the US are just assemblers of imported parts.


30 posted on 06/22/2018 9:18:11 AM PDT by Doc91678 (Doc91678)
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To: SeekAndFind

Threats of tariffs are not tariffs. This is a negotiating tactic designed to make it painful enough that other countries drop their tariffs.


31 posted on 06/22/2018 9:23:37 AM PDT by WASCWatch
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To: pgkdan

why boohoo? Do you want consumers paying more for cars?


32 posted on 06/22/2018 9:34:31 AM PDT by bjcoop
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To: Soul of the South

Actually at least the Accord is almost all US made with mostly US parts. Regularly appears as one of the top 3 US made cars even above so-called US brands. Ditto many of their motorcycles. Lots of good jobs for US workers and manufacturers.

Used to run with an M/C as a non-official friend of the club. One guy razzed me about riding a Honda. I looked at his Harley and said, “you do realize your bike was made in Mexico while mine was made in Marysville, Ohio with mostly US parts? Look it up.” He did. Never got any beef for riding a Honda again.


33 posted on 06/22/2018 9:35:06 AM PDT by piytar (If it was not for double standards, the Democrats and the left would have NO standards.)
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To: SeekAndFind
...Tariffs Could Boost Car Prices, Limit Choices

Funny how this is an issue just now.

Where were these guys when Obama raised the CAFE standards to unrealistic levels on an unrealistic timetable. This directly caused car prices to increase and directly limited choices. There are many models (Toyota 4Runner, for example) where you always had a V8 option and now you don't, in the company's effort to increase their fleet mileage standards.

So, once again, selective outrage by those who were dead silent during the Obama fiasco, and now crow like magpies at anything Trump does.

34 posted on 06/22/2018 9:36:58 AM PDT by Obadiah
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To: SeekAndFind

“could”
Including “could” in the sentence, gives the sentence 0 information content.


35 posted on 06/22/2018 9:39:33 AM PDT by I want the USA back (Liberalism is the denial of human nature.)
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To: bjcoop
why boohoo? Do you want consumers paying more for cars?

You should try applying a little critical thought to the issue. And if it takes people paying more for BMW's and MB's to get fair trade practices then yeah...I don't care if it costs more.

36 posted on 06/22/2018 9:41:04 AM PDT by pgkdan (The Silent Majority STILL Stands With TRUMP!)
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To: DannyTN
"Trump Administration Tariffs Could Boost Car Prices, Limit Choices will help American auto manufacturers and auto parts industries, employee Americans with good paying jobs"

More likely it'll just kill the Ford Focus and Buick Envision, at least in the U.S. Keeping manufacturing here or switching it back here wouldn't be cost effective. They couldn't make enough off them to justify the production lines.

37 posted on 06/22/2018 9:48:21 AM PDT by DoodleDawg
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To: DannyTN
How much will this cost car buyers? save in unemployment, disability, other government support costs for unemployed Americans, generate in income tax, generate in economic activity due to multiplier effects, raise the real wages in America, reduce the deficit, lower taxes?"

Nothing, probably.

38 posted on 06/22/2018 9:51:03 AM PDT by DoodleDawg
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To: nikos1121
Prices of cars here, might even go down.

Why would they? If the price of your competition suddenly goes up by 25% why would you lower yours? You could easily increase your price by 10% or 15% or 20% and remain cost competitive.

39 posted on 06/22/2018 9:55:47 AM PDT by DoodleDawg
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To: DoodleDawg

That’s possible, but in a totally free market not all car makers will raise their prices. I love the high end Lincolns, even the Caddies, but I’ve been going with Mercedes and for the past 15 years Lexus. You raise the price of a Lexus 15% and if Lincoln adds more quality to their cars and does not raise the price much, I might go with a Lincoln next time.

It is really amazing when you think about it, THE MOST LIKELY OUTCOME OF THE REMOVAL OF TARIFFS COMPLETELY WORLD WIDE WOULD BE THE WORLD BEING MORE GLOBAL! What Obama and the others tried to do, will be more easily accomplished with a truly open world economy.


40 posted on 06/22/2018 10:23:46 AM PDT by nikos1121
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