Will the inauguration of President Trump put Japanese automakers in a difficult position?

mikeavelli

mikeavelli

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mmcartalk said:
With all due respect, I have to disagree. In the long run, (although we might not see it overnight), I believe that tariffs, if they force prices up high enough that Americans won't buy goods produced in those countries any more, will FORCE American companies to bring manufacturing back home to the U.S., where, for the most part, the jobs should have stayed in the first place. If we, as a country, had been boycotting these Chinese-made products before, perhaps there would not be a need for the tariffs we are now seeing.
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Yes let’s follow someone who’s filed bankruptcy 6 times on how to spur the economy lol.

Never in American history has a massive tariff helped the economy. Never. It has only hurt the economy and immediately impacted consumers with rising prices.
This is so basic it’s hard to postulate how anyone thinks otherwise. Actually I do understand. Which brings me great sadness.

An executive at America’s biggest bank (JP Morgan) had a good line on tariffs earlier this week: “The trouble with tariffs, to be succinct, is that they raise prices, slow economic growth, cut profits, increase unemployment, worsen inequality, diminish productivity and increase global tensions. Other than that, they’re fine.”
 
CRSKTN

CRSKTN

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mikeavelli said:
Yes let’s follow someone who’s filed bankruptcy 6 times on how to spur the economy lol.

Never in American history has a massive tariff helped the economy. Never. It has only hurt the economy and immediately impacted consumers with rising prices.
This is so basic it’s hard to postulate how anyone thinks otherwise. Actually I do understand. Which brings me great sadness.

An executive at America’s biggest bank (JP Morgan) had a good line on tariffs earlier this week: “The trouble with tariffs, to be succinct, is that they raise prices, slow economic growth, cut profits, increase unemployment, worsen inequality, diminish productivity and increase global tensions. Other than that, they’re fine.”
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Consistently a breathe of fresh, reasoned air.
 
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Sulu

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ssun30 said:
One of the hardest things to educate people about is that tariffs are charged on a country's own citizens, not foreign companies.
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And a 25% tariff (tax) was just added on goods imported from Canada and Mexico. That is a tax that is higher than the value-added (sales) tax charged in many European countries (which is about 20%).
 
qtb007

qtb007

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Sulu said:
And a 25% tariff (tax) was just added on goods imported from Canada and Mexico. That is a tax that is higher than the value-added (sales) tax charged in many European countries (which is about 20%).
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At least with this tariff income, I'll still have the freedom to get injured, lose my job, lose my health insurance, and lose my house due to medical expenses.
 
mikeavelli

mikeavelli

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Now it’s stalled for the automakers for a month. You cannot forecast in this environment!’

Trump to give 1-month tariff exemption to USMCA-compliant automakers

President Donald Trump will exempt automakers from his punishing 25 percent tariffs on Canada and Mexico for one month as long as they comply with the terms of an existing free trade agreement, the White House said March 5.
www.autonews.com
 
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spwolf

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btw, USMCA free trade agreement was signed by..... Trump, in 2020.

And 5 years later Trump is dropping it overnight, hurting all those US owned companies, who made the investment based on the agreement.

of course markets are down, this is crazy unpredictable environment. sucks for everyones 401k plans.
 
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ssun30

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Li Auto is junk. So are most "new wave" Chinese EV makers. Xiaomi surprised me with how pragmatic their approach is and now I'm convinced they can survive at least 5 more years. The SU7 Ultra is indeed a great alternative to the Taycan.

Chinese automakers are like Japanese in the early 90s. There is a short time window after asset bubbles burst when people's disposable income actually increases and deflation is temporarily beneficial. Most of the iconic "Bubble Era" JDM cars are actually from after the bubble bursted.

During that period we saw JDM Corollas equipped with AllTrac AWD system and TEMS adaptive suspension. Satellite TVs, fax machines, GPS navigation, laser cruise control, night vision on luxury cars almost a decade before they became mainstream. Now we are seeing fully reclined massage seats, refrigerators, active suspensions, soft close doors standard on sub-$50k cars in China. Of course just like Japanese car makers they will decontent their international models (but still generously equipped) and sell at inflated prices (but still competitive) to make up for domestic losses.

American consumers have no idea what they missed out on with those tariffs.
 
CRSKTN

CRSKTN

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Capital wisens up quickly. At some point the stocks don't rise back up, ever again.

Or if they do, it's only because the USD exchange rate is decaying.

You think inflation is bad now? What happens when people don't need a USD much more than they need other currencies?

Go look at what happened to Argentina. That country being blacklisted from global capital markets crippled it more than sanctions ever could.
 
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