Posted on 11/26/2024 10:09:22 AM PST by Responsibility2nd
LONDON, Nov 26 (Reuters) - Shares of U.S. and European automakers dropped on Tuesday after President-elect Donald Trump pledged steep tariffs on Canada, Mexico and China, threatening the industry's tightly knit supply chains and raising investor concerns of higher costs.
Trump said in a post on Truth Social he would impose a 25% tariff on all products from Mexico and Canada, and an additional 10% tariff on goods from China, on his first day in office in January.
Many automakers have built factories in Mexico to take advantage of relatively cheap labor and the country's proximity to the lucrative U.S. market, while China is a supplier of certain key components.
"If implemented, this (tariffs) would spell disaster for the U.S. auto industry and Detroit Three manufacturers, all of whom import significant numbers of vehicles from Canada and Mexico, as well as Volkswagen and other European OEMs," Bernstein analyst Daniel Roeska said in a note.
(Excerpt) Read more at reuters.com ...
The article goes on to say that shares of US car manufacturers have fallen already based on this 25% tariff.
Will the price of all cars, even those made in the US, increase by 25%?
Boo Hoo
It sounds to me like "automakers" do not put Americans first either.
Just build your cars in the US ,LOL
No they won’t. Profit margins for imported vehicles will shrink. They will have to suck it up or move production to the USA. Meanwhile we are taking in billions. Now, if we can get the govt to not spend the wind fall...
All I can say is that Trump warned them and the told him to p^ss off and outsourced American prosperity to Mexico. All I can tell them is they better start insourcing their production.
Tariff away.
The Federal Government should be forced to create 50% of it’s financial needs from Tariffs. That would protect US industries, Jobs, Economy, and put the burden on the Consumers who buy foreign products. It really isn’t protectionism, it’s not anti-any other country, it’s just a way to Control FedGov and protect unions and workers.
Tariffs can be changed, removed, or added as needed. Taxes only increase and to eliminate requires huge legislation. Tariffs are far more consumer driven, and nimble.
Tariff away. I like to buy American anyway..
Yeah stop sending us migrant garbage and drugs and we can end this right now
How many anti tariff BS articles are you going to post? We get it, you are Free Traitor™. There is no need to prove it every 2 or 3 hours.
These dweebs forget that the internet exists and think history started this morning. Those same things were said 8 years ago and were all proven to be incredibly inaccurate.
EC
Well they know what to do about it.
There’s so much global outsourcing nowadays no car is manufactured 100% in the stated country of origin.
It’s reassuring to know that multiple (if not all) media outlets, before his even taking office, are scrutinizing Donald Trump’s policies and proposals the same way they did Joe Biden’s./s
Yes, maybe these guys can talk Mexico into stopping the caravans of illegals instead of escorting them.
We are in our early 70s and are thinking that maybe we should buy one last car. One current car has 105k, the other 135k miles. So I priced new and used big SUVs last week and that exercise "raised my consumer concerns of higher prices."
Egads! I knew car prices were sky high, but not as crazy as I discovered.
I think we'll stick with more maintenance work to keep the ten year old vehicles going.
If a country is costing us billions of dollars, simply due to not respecting our mutual border, it is a far better option to levy taxes than to go to war.
Would you rather have war?
AI tells us.....
In 2020, the average price of a new car was approximately $36,824.
As of 2024, the average price of a new car is around $48,401.
Thank you Brandon.
How much of those losses due to EVs?
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