The base line 10% tariffs and steel / aluminum (25% ?) tariffs are all in.
The extra tariffs start in August.
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Better ask General Motors. It’s their financial statement to the market and it seems categoric.
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Looking on the old internet car prices haven’t changed as of yet. Tariff’s of applicable are being absorbed by the dealers. This will become a bigger issue in August when the additional tariffs hit.
At the moment they are putting down the decrease in profit to consumer sentiment. If they think sentiment is down now wait til a month or two.
Meanwhile a couple of tech giants are booming and driving the market.
Car Prices haven’t moved yet because it takes a considerable amount of time for those cars impacted by the initial tarrifs to go from being Manufactured to being available in dealerships (worldwide).
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Of course. I was reacting to the article by General Motors who blamed the drop in profits on the Tariffs.
I’d imagine the cost of production is felt first, with production having become more expensive but that is yet to flow to dealerships it would make some sense that their profit has been impacted.
If they are building cars at now increased cost but selling old stock manufactured and priced pre-tariffs then it all kind of makes sense.
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The first thing people do in a recession is go out and buy a new car.
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Exporters can claim duty drawback on steel and aluminium and any other imported components used in manufacture for export. It depends how far down the chain the drawback would be.
The big export sectors of aircraft and defence shouldn’t be affected.
It’s not inconceivable that there could be adjustments , involving tariff exceptions for some sectors.
Reporting on the framework trade agreements foreshadow tariff quota arrangements for some imports, including steel and aluminium. The UK was exempted from the initial steel and aluminium tariffs.
In the interim revenue from imports entirely consumed within the US will be generated, although some will have to be refunded ( unless the US has a scheme like Australia’s Tradex, where exporters don’t pay the import duty).
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Not really a contradiction. Income mostly comes from cars manufactured previously. Expenses mostly come from cars yet to be sold. And no one wants to be tagged the first to raise prices, especially if TACO (after he publicly abuses you, probably).
I don’t know if COVID made them less “just-in-time”, which would affect how quickly their input costs ramp up.
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Saladin one minute: “I’ve gotta jump out of US politics news, the corruption is too much”
Saladin almost immediately thereafter: several lengthy, detailed, referenced posts dissecting the corrupt and destructive behaviour of several US politicians…
Go well old fella, we need you for the long haul!
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It’s a confusing scenario , because GM actually had much- increased sales as people brought forward purchases to beat the tariff costs that are looming. But the direct cost of those tariffs has increased the GM outgoings by an estimated 1.1 billion dollars. I wonder if this stuff is tariff-required infrastructure and import changes.
There’s a hell of a lot to play out, because the rush to buy non tariff products will undoubtedly impact on the first quarter economic activity figures.
Edit - it’s a similar story at Ford, who had better than expected sales figures but are expecting a 2 billion dollar hit from tariffs. Interestingly, Ford are far more US-based in terms of manufacturing than GM ( who build a lot of stuff in Mexico and Sth Korea) so their exposure must come from imported materials and components.
There’s also an unspoken factor in this . If they shift assembly back to the US, will US workers have to accept wage rates equivalent to Mexico wages plus 10 percent?
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Ya think you’re out and they drag you…….
No, I do need a break. The stupidity and wilful ignorance - and acceptance of corruption - of much of the world at large is doing my head in.
Fortunately I have an escape via my footy te…. Err, never mind.
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As with any ANNOUNCE of tariff hikes, importers would have stocked up ( if they had access to financing).
So much facepalm.
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Trying to bribe countries into doing the wrong thing morally.
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Each day something more stupid than the day before. If anything, it’s actually impressive how much of an imbecile this man is.
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Lucky that GM is a foreign government (who always pay the tariff), and not a domestic auto manufacturer!
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Car prices were already far too high in the US. Sales are crap and a lot of dealers are close to going under. Overpriced big piles of junk.
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Oh, hello new thread.
Same as the old thread.