Posted on 03/31/2025 9:05:17 AM PDT by SoConPubbie
The Trump administration's senior counselor for trade and manufacturing, Peter Navarro, suggested on Sunday that the tariffs on automobiles, which are set to go into effect "on or after April 2," would raise $100 billion, ostensibly in a year.
Responding to a question from "Fox News Sunday" that the tariffs, according to Investopedia, would raise car prices for consumers, Navarro discounted the concern, offering instead that tariffs represent "tax cuts." They are "jobs," he added, "tariffs are national security; tariffs are great. For America, tariffs will make America great again."
Addressing the concern of tariffs among consumers, Navarro pointed to "when we imposed historic tariffs on China, steel, aluminum; the same people — Investopedia and on down — who were saying 'There's going to be inflation and recession,' were dead wrong. We got price stability and prosperity, and we're gonna get that again."
Regarding tariffs on cars and auto parts, the presidential counselor pointed to what's become known as the Chicken Tax, imposed by President Lyndon Johnson, where tariffs were imposed on France and Germany for the import of light trucks in response to the tariffs imposed on the export of American chickens. The tariff, Navarro suggested, had fostered a renewed focus on American truck manufacturing.
However, when pressed by host Shannon Bream that costs from the tariffs could be passed to the American consumer, Navarro said that those who buy American cars would receive "tax benefits" and tax credits."
"In addition" to the auto tariffs, "the other tariffs are gonna raise about $600 billion a year, about $6 trillion over a ten-year period, and we're gonna have tax cuts. It's the biggest tax cut in American history."
Navarro concluded that if looked at "holistically as they say," the tariffs would provide Americans with jobs and make consumers better off.
(Excerpt) Read more at newsmax.com ...
The new spin is …… tariff revenue is the biggest tax hike in American history.
The best selling vehicle in the U.S. is the Toyota RAV4 that’s assembled in Canada. The Honda CR-V is basically the same vehicle, same price but assembled in Ohio and Indiana.
Add $7000 in tariffs to the Canadian car and Honda will soon be hiring more middle class American workers. That is until Toyota builds another plant like their Camry plant in Kentucky with its middle class American workers.
What’s to argue? It’s MAGA common sense.
I share Navarro view. US has been taken for the cleaners. Good jobs went to China. We need to take these jobs back!!!
The only way to save this country!
Yes, one can see tariffs like taxes, similar to VAT. But, the guv. is in dire need of money. Taxes on consumption are better than taxes on income. And, car tariffs really are not paid by the poor!
Honda is number 2 behind Tesla as auto company with the highest % of US parts in their domestically manufactured cars.
This probably heresy but here goes. (By the way I voted for Trump 3 times because there wasn’t any moral alternative). I’m a retired guy living mostly on my 401K. I made the mistake of investing in American companies like GM and Ford. Trump’s tariffs have decreased their value by 5-10%. Are Trumps tariffs on some foreign countries compensatory or are they just retaliatory? I understand equivalent tariffs but the alienation of all of our historical allies leaves me bewildered.
I understand equivalent tariffs but the alienation of all of our historical allies leaves me bewildered.
There is a lot of evidence for stronger deeper relationships being developed.
... Why would we be exporting chickens to Europe? Can’t they grow their own chickens there? I’m sure they can, so...? That’s weird.
Or Canada will drop their tariff walls, in which case the administration would reduce ours.
Their choice. Protect lumber and dairy industries or keep the auto industry.
Toyota will be there soon enough.
“Are Trumps tariffs on some foreign countries compensatory or are they just retaliatory?”
I don’t know how these tariffs - and other Trump initiatives - will shake out. Neither do you. Neither does President Trump.
There are a lot of dynamics going on including possible new military action. And, of course, every democrat in the nation is hoping for failure.
Net: our best course of action is to support President Trump and see if his policies can work. My best guess is that it is going to be painful to turn our big misdirected ship around but if we can stay the course things will improve long term.
That’s why it’s called reciprocal. I’m cool with that as I’m sure DJT would be.
I have read 70% for Honda.
Which surprised me.
There are at least three U.S. states with a larger GDP than all of Canada. How much lumber or dairy products could U.S. producers possibly sell up there?
Not so crazy about being nailed for foreign parts having bought a used car because our Ford Focus had been totaled by a DUI. We needed something immediately. If there’d been an American hatchback available with a manual transmission that was well-made with a decent service record, we’d have bought it.
the U.S. trading partners’ hypocrisy becomes evident when they scream about us imposing tariffs — yet the partners have ALREADY imposed their own tariffs on our exports, for decades in some cases
Sauce for the goose. Sauce for the gander
Not much.
But that’s part of the point. Trump is using our leverage to actually approach a real free trade stance between the two countries.
Personally I wouldn’t even be that generous. Canada’s position was the result of them being ethnically related to us and the history of being allies in world wars.
But that Canada is really gone now and is determined to be even more gone with a policy of mass third world immigration to triple their population. Such people have no relation to us nor should we extend them any courtesy won by previous generations of White Anglo-Saxon Protestants.
If they want to curtail that activity then perhaps we could let some of the old imbalances stay. Like you said, what do we really care about Canadian cheese markets? Canada is 2% of US trade.
And just FYI, I think Canada should not be the focus. Mexico is the real problem both from a trade and existential basis. Millions of WASP Canadians have not flooded into the US either legally or illegally. They go to Dania Beach or Phoenix for the winter, behave pleasantly and head home come April. There are not entire cities that are now ethnically Canadian, unlike the entirety of Los Angeles which is now the largest Mexican city next to Mexico City itself.
I don’t know about 100 billion. Been lied to much to trust numbers from the government.
But I don’t care because the long-term amount of taxes collected from the circulation of the currency in the economy here will be enormous. Rather than keeping foreigners employed we need to get good paying jobs back in our country.
And that chicken tax pisses me off. I don’t need a giant truck I need a smaller truck that is more economical to run for my work. I also don’t need a giant price tag for a giant truck that I don’t need.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.