Summary
Trump warned automakers not to raise prices after announcing a 25% tariff on imported vehicles starting April 3, claiming the tariffs would be “great” and benefit U.S. manufacturing.
Industry leaders, including GM, Ford, and Stellantis CEOs, expressed concerns about inevitable price increases, with experts warning tariffs could add thousands to car costs.
Auto suppliers stated that absorbing tariffs is impossible, and dealers fear affordability challenges for consumers.
While the United Auto Workers union support the move as a job creator, trade groups predict higher prices and fewer manufacturing jobs.
Holy shit everyone was right and he doesn’t understand how tariffs work
trump has had 6 companies go bankrupt he is not a good business man.
Is he so stupid he doesn’t understand how to fascism?
Yes, and at this point it’s the United States’ only hope.
Can’t count on the people, better hope the regime kills itself.
Ugh, I hate this timeline, where a whole lot of people, countries, and organizations are trying to avoid incurring the wrath of a complete dipshit and total baby named donvict.
At this point, I am surprised he hasn’t ordered the treasury department to just mint more cash.
I think that’s what happened to Nazi Germany, so just wait a little while.
Meanwhile, prepare to barter.
That will come. He’ll also stop payments on Treasury Bonds. Not paying agreed upon obligations is his MO in business.
Absolute clown administration
Absolute clown country
administration
Regime*
Youre right mb
This is #mafia #fascism tactics. I hope #us economy leaders will realize how crazy #trump is and the will go against him.
And that will come, but unfortunately not before he turned the country into a fascist state with no more balance of power. At that time, oligarchs will have their useful idiot removed and replaced by a real puppet that will be granted absolute power.
I’m gonna have to confiscate these: ####.
Seriously, what can possibly make that worth adding?
Would you say it’s your #1 complaint?
#_#
Someone make this make sense to me. If imported parts and cars are subject to a tariff. How does that increase the cost of American goods outside of corporate greed?
There was a good graphic earlier I saw somewhere on Lemmy. Metal gets made in America and shipped to Canada to be made into rods which gets shipped to America (2 lots of tariffs) then to Mexico for cutting into piston pieces and back to America to be used in car making. So 1 small piece taxed from tariffs 4 times.
Might be slightly wrong on the exacts, but you get the idea. The manufacturing system has been set up for free trade in north America, you can’t just magic a new factory on US soil without spending a fortune and you can’t know if these tariffs are just going to go away soon, in which case you’re huge upfront investment was a waste.
So costs of making have gone up, possibly a lot more than 25% in some cases.
Prices increase in response to increase in costs- this is so basic it’s covered in introductory econ courses and applies to all businesses. Adding costs to production has to be reflected in the final price. Tariffs pretty much never help consumers- they prop up inefficient industries that can’t compete with global trade. In general, global trade with low tariffs is better because of specialization
The problem here isn’t the increased price of goods, it’s the fact that Trump knows increasing the price of non-US built cars via tarrif gives US car companies an advantage that could be used to sell more cars for less money, but will really just give US car companies the opportunity to raise prices any amount they choose, as long as it’s slightly less than the tarrif, thereby making more money and enjoying the advantage of not paying the tariffs. People will still buy cars, and they might buy American cars because they’re now a little cheaper than non-US… But if they do this, the tariffs will pretty much only result in higher priced cars across the board instead of affordable IS cars vs expensive foreign ones.
Basically someone explained to Trump one of the many ways the tariffs will be backfiring, and he’s ineffectually asking companies not to do that.
I mean we (anyone who has observed reality or knows history) already knew that. The poster above probably thought “tariffs = foreigner disadvantage”. There’s not really such a thing as a US-only car company so there is no advantage whatsoever to be gained- it’s inevitable that these US car companies have global supply chains to take advantage of specialization, not to mention labor and parts only made overseas. Even if you could bring everything inhouse, everything would more expensive. There is no “more cars for less money” because not only do we not have all the parts manufactured in the US (meaning we’re forced to import), but labor is more expensive. It’s all a waste of time and resources
I think a lot less people will be buying cars. And a lot of other stuff.
Well, it doesn’t HAVE to be,.depending on the margins, the increase, how responsive consumers are to price increases in that good, and whether or not it’s strategically beneficial to eat the slimmer margin for some reason.
Practically a public 25% tariff is fantastic cover for a 30% price increase these days.
Because we can’t build a lot of car parts in the US for the same price. If we tariff imports / move all manufacturing back to the US then prices must rise. The problem is that this sucks up money that would otherwise be spent on other things, so the economy on the whole suffers. One way that advanced countries adapt to this is by pivoting to high-tech manufacturing… which requires highly skilled labor and can’t be easily replicated in other countries. In other words let someone else make a cheap widget, then use that to build a jet engine that increases the added value of the widget dramatically.
I’m not sure I get you…but either using components that are imported, and having to pay tax on that, or “they’ve increased their prices so I am”.
If I’ve totally got this wrong I apologise.
So he’s basically telling the other billionaires to eat the cost of the tariff themselves and NOT pass them on to the consumer.
Trump really is stupid enough to start biting the hands that gave him his current position, all because Musk tells him to.
If it actually worked it’s a funny way to say, let’s tax corporations. It would never happen though because it makes line go down.
it makes line go down.
You often see the question asked online “What radicalized you?”
For me, I was working for a telecommunications provider as a manager and was told that neither myself nor my staff would see any raises or bonuses that year because “the company didn’t make any money.”
The kicker being that the company made 6 billion that year. But because the money counters had projected them to make 7 Billion, and they didn’t hit it, giving out raises would make the stock price drop even more than it was already going to. Essentially, not enough profit, is the same as NO profit.
But you better believe the CEO and executives got their bonus that year.
it makes line go down.
“Projected profit” versus “actual profit”. Thank you, cause I’ve always wondered how a company can make a profit and high up people in that business can say that the actual workers don’t deserve a pay rise.
The really stupid part is a well paid and well educated work force will create more money than the alternative.
Problem is that a well paid and well educated workforce will make more money ‘sometime after the next quarter’ and in a diffuser way spread evenly across the board.
Stiffing people and withholding raises will show a profit within a quarter someone’s bonus is based on.
Guess which option the people who get the bonuses will pick.
Honestly the ‘fiduciary responsibility to maximize shareholder value’ might be the phrase we’ll look back on as the downfall of the human race.
Can you say “economic collapse”.
yup he is helping russia make US go bankrupt. Trump has talent in bankrupting his companies.
The trump regime was designed to TANK the US economy so that stocks, businesses, and industries can be bought by billionaires at rock bottom prices.
All is going according to plan.
This is something people forget a lot because everyone gets consumed by latest bullshit drama pop political news.
100% agree, this is a coordinated attack on the US by bad faith actors willing to sell a society into bondage for personal gain. They want to make themselves techno-pharoes, in my opinion.
How great would it be if he somehow accidentally killed car dealerships
Sneaky carbon tax lol
Fuckcars is delighted
It will kill more than just dealerships. Imagine being any company operating in the US and the president threatening other companies for not paying the tariffs he is imposing. Imagine the investor confidence imploding and companies refusing to operate and close doors because they are not willing to pay for a stupid president destroying their profits. Companies have a fiscal responsibility to their shareholders, and this won’t be tolerated.
I thought China was paying the tariffs?
/s
If nothing else, I look forward to the history books and a tragicomedy documentary about…everything, really.
I want to be there when the students ask “”why didn’t the ones with the guns to protect against tyranny use them”.
History is written by the victors, and the outcome is looking grim right now.
Idk man, the west still have records of the Tiananmen Square Massacre.
Similary, non-US countries will have records of the US’s fascism spiral.
I am certain that Dogey America will lose. Whether any good parts of the USA survive the chemotherapy is the question.
That works much less in an interconnected world (part of why they hate globalism). There are other countries keeping tabs as well. It’s also why we know of the many atrocities committed by the US worldwide. They can try and hide what they can, but it’s much harder these days.
I hope the car makers said ‘thank you’
This, again, shows the enormous reaches of stupidity that Trump fills.
He’s such an abysmally bad politician. Bungler. He’s ruining the country.
I find the small insight we are getting about him as a businessman equally interesting.
He’s supposed to be a businessman. How can he not understand that business doesn’t work like that?
He was never a good businessman, though.
If he hadn’t started with inherited wealth, he would never have been able to get to where he is.
He only got a small loan of a million dollars.
That doesn’t sound small to me.
Unless you missed a /s…
Probably achieved a lot of stuff by bullying, or what is basically bullying.
He is a businessman, but there was always debate about whether he was a good businessman. Judging by his casinos going bankrupt, I would consider him bad. Also see trump steaks, or trump university.
He’s more of a conman, who fails at business.
He’s still conning the suckers…
Is he really tho:
“Details About the 6 Trump Corporate Bankruptcies”
He was put in to sabotage the US both internally and globally. That doesn’t require him to be a good politician, just a relentless, brutal wrecker.
Donald Trump represents a symptom of a deeper, systemic issue within the United States: The nation is grappling with severe internal fractures.
The most important division is the extreme concentration of wealth in the hands of very few. The rich are virtually untaxed. Many of these wealthy individuals and corporations have offshored their operations, amassing revenues that surpass those of entire nations.
This economic imbalance has enabled the powerful to dominate both traditional media and social media platforms. They are effectively manipulating public opinion. By exploiting the vulnerabilities of an under-educated populace, this influence has undermined democratic processes.
I fully agree. The next step that hopefully doesn’t come to pass is causing so much frustration and hate that it leads to riots or other forms of attack. When that happens, he is going to call marshall law and take control as a dictator. Scary time to live in America.
Marshall law
Martial law is the replacement of civilian government by military rule and the suspension of civilian legal processes for military powers. Martial law can continue for a specified amount of time, or indefinitely, and standard civil liberties may be suspended for as long as martial law continues.
