Tariffs, aka taxes, in action - auto edition

[dmallord]

Pay them or don't pay them?

Repeal them. Negate the EOs for the Tariffs.

 

[RobDownSouth]

The other side of this is that yes, tariffs on imports WILL push up costs and PERHAPS drive some manufacturing back to the USA. The issue there is to tool up, set up factories and develoop the supply chains necessary to support smething like the manufacture of car parts is a huge endeavour that will take years. The automobile industry is international and tightly interwoven - and the USA is isolating itself and going it's own way.

Fine and good, but this reverses decades of policy, and manufacturers may decide it makes sense to simply pass the tariffs on and wait it out rather than rework supply chains, retool and adjust - if they make huge changes and a successor simply goes back to the former status quo, where does that leave them? Hanging in the breeze. All that's going to happen for the rest of Trump's term is that tariffs will make their way thru to the consumer, prices and costs will skyrocket, and not much manufacturing will ever come back in the short term. Some companies may be able to adjust quickly but quite simply, we have eroded our industrial base and Trump's approach is taking a sledgehammer to somethimg that needs a lot more finesses.

Blanket tariffs at a country level are no solution and will simply damage the US economy. Canada's a prime example - our single biggest customer and our single biggest source of imports and they are adjusting and going elsewhere for both exports and imports. Trimp can impose all the tariffs on them he likes but we depend on Canaf for a multitude of raw materials that are critical to our economy - steel, aluminium, nickel, copper, electricity, potash. Tariffs do nothing to reduce that reliance - we simply cannot get potash from anywere else and there is no US source of supply. Tariffs on potash will have an enormous impact on US agriculture for no sane purpose. Watch farms start to go under over the next few months.

Car parts are just one example of manufactured items. Sure, they could be manufactured here but that will take years and there are so many many parts.....That is one intricate supply chain and you fuck with it at it's peril. The auto industry is going to be screwed here unless a few enterpreneurs get into custom part manufacturing fast. But then you need the design for the part, I guess.

Up until now, stockpiles inside the US have been hiding the impact but it's starting to be visible now and from here on in it's only going to get worse.

I like how that billionaire Howard Lutnick, Trump's secretary of commerce, smugly said, "we'll just being everything back to the good ole USA!"

"What about coffee?"

"Coffee too!"

"Sir, Coffee doesn't grow in any latitude in the continental United States...."

*Frozen Derpy-like gaze from Lutnick

 

[ChloeTzang]

I like how that billionaire Howard Lutnick, Trump's secretary of commerce, smugly said, "we'll just being everything back to the good ole USA!"

"What about coffee?"

"Coffee too!"

"Sir, Coffee doesn't grow in any latitude in the continental United States...."

*Frozen Derpy-like gaze from Lutnick

LOL. And Potash. Portash doesn't come from just anywhere. In fact just about all the potash used by US agriculture comes from Canada. And it's got hige tariffs on it. LOL.

Grown your own food, folks. And tag vegan neighbors for future meat shortages. Organic is best!!!!!

 

[Bray123]

The cost of shipping is part of the cost of the item, just as is the cost of cleaning the toilets of the workforce. It's not some arbitrary amount that a fraudster is imposing to distract people from his presence in documents regarding the sex trafficking of underage girls.

 

[MajorRewrite]

Trump’s own volatility works against the protectionist impact of his tariffs.

As Chloe pointed out, manufacturers would need to know that protectionist tariffs will be stable for the long term before committing hundreds of millions to build new factories here. But nobody can count on Trump to be consistent about anything for more than two weeks.

I think we’ll see plenty of companies announce new factories to get favorable treatment from Trump, but actual construction will always be “two weeks” away.

 

[MasterAnimus]

Death and taxes, my friend, death and taxes.

Except on billionaires

 

[Saint_Ann]

Except on billionaires

How much tax is there on a billion dollar yacht?

 

[ll74]

How much tax is there on a billion dollar yacht?

Zero

 

[Lazaran]

I think we’ll see plenty of companies announce new factories to get favorable treatment from Trump, but actual construction will always be “two weeks” away.

Post. Of. The. Day. (Month? Year?).

 

[Lazaran]

The other side of this is that yes, tariffs on imports WILL push up costs and PERHAPS drive some manufacturing back to the USA. The issue there is to tool up, set up factories and develoop the supply chains necessary to support smething like the manufacture of car parts is a huge endeavour that will take years. The automobile industry is international and tightly interwoven - and the USA is isolating itself and going it's own way.

Fine and good, but this reverses decades of policy, and manufacturers may decide it makes sense to simply pass the tariffs on and wait it out rather than rework supply chains, retool and adjust - if they make huge changes and a successor simply goes back to the former status quo, where does that leave them? Hanging in the breeze. All that's going to happen for the rest of Trump's term is that tariffs will make their way thru to the consumer, prices and costs will skyrocket, and not much manufacturing will ever come back in the short term. Some companies may be able to adjust quickly but quite simply, we have eroded our industrial base and Trump's approach is taking a sledgehammer to somethimg that needs a lot more finesses.

Blanket tariffs at a country level are no solution and will simply damage the US economy. Canada's a prime example - our single biggest customer and our single biggest source of imports and they are adjusting and going elsewhere for both exports and imports. Trimp can impose all the tariffs on them he likes but we depend on Canaf for a multitude of raw materials that are critical to our economy - steel, aluminium, nickel, copper, electricity, potash. Tariffs do nothing to reduce that reliance - we simply cannot get potash from anywere else and there is no US source of supply. Tariffs on potash will have an enormous impact on US agriculture for no sane purpose. Watch farms start to go under over the next few months.

Car parts are just one example of manufactured items. Sure, they could be manufactured here but that will take years and there are so many many parts.....That is one intricate supply chain and you fuck with it at it's peril. The auto industry is going to be screwed here unless a few enterpreneurs get into custom part manufacturing fast. But then you need the design for the part, I guess.

Up until now, stockpiles inside the US have been hiding the impact but it's starting to be visible now and from here on in it's only going to get worse.

Um, YEAH!!!

ALL of "your" points WERE MADE by decent, intelligent individuals BEFORE the election, and yet YOU STILL VOTED FOR DONOLD & THE MAGAT REPUBLICANS.



Please spare us the reformed MAGAtsplaining…





We. Told. Them. So.

 

[Saint_Ann]

Zero

Those billionaires are clever bastards.

 

[ChloeTzang]

ALL of "your" points WERE MADE by decent, intelligent individuals BEFORE the election, and yet YOU STILL VOTED FOR DONOLD & THE MAGAT REPUBLICANS.

There's the intelligent application of selected tariffs in specific sectors, discussed with the industry bodies and with planning and time to repatriate product manufacturing and allow cutover while kinimizing impact....

and then there's the crazy bullshit we;re experiencing, which is NOT what I voted for.

I expected at least a modicum of intelligence.

 

[MasterAnimus]

How much tax is there on a billion dollar yacht?

How much tax is there on a billion dollar plane from Qatar?

 

[MasterAnimus]

It IS an additional tax. Tariffs are a tax on imported goods.

Where there was none before.

 

[MasterAnimus]

The other side of this is that yes, tariffs on imports WILL push up costs and PERHAPS drive some manufacturing back to the USA. The issue there is to tool up, set up factories and develoop the supply chains necessary to support smething like the manufacture of car parts is a huge endeavour that will take years. The automobile industry is international and tightly interwoven - and the USA is isolating itself and going it's own way.

Fine and good, but this reverses decades of policy, and manufacturers may decide it makes sense to simply pass the tariffs on and wait it out rather than rework supply chains, retool and adjust - if they make huge changes and a successor simply goes back to the former status quo, where does that leave them? Hanging in the breeze. All that's going to happen for the rest of Trump's term is that tariffs will make their way thru to the consumer, prices and costs will skyrocket, and not much manufacturing will ever come back in the short term. Some companies may be able to adjust quickly but quite simply, we have eroded our industrial base and Trump's approach is taking a sledgehammer to somethimg that needs a lot more finesses.

Blanket tariffs at a country level are no solution and will simply damage the US economy. Canada's a prime example - our single biggest customer and our single biggest source of imports and they are adjusting and going elsewhere for both exports and imports. Trimp can impose all the tariffs on them he likes but we depend on Canaf for a multitude of raw materials that are critical to our economy - steel, aluminium, nickel, copper, electricity, potash. Tariffs do nothing to reduce that reliance - we simply cannot get potash from anywere else and there is no US source of supply. Tariffs on potash will have an enormous impact on US agriculture for no sane purpose. Watch farms start to go under over the next few months.

Car parts are just one example of manufactured items. Sure, they could be manufactured here but that will take years and there are so many many parts.....That is one intricate supply chain and you fuck with it at it's peril. The auto industry is going to be screwed here unless a few enterpreneurs get into custom part manufacturing fast. But then you need the design for the part, I guess.

Up until now, stockpiles inside the US have been hiding the impact but it's starting to be visible now and from here on in it's only going to get worse.

The original point was - how people thought the treasury coffers filling with tariff money - mistakenly thought as paid by other countries, when in fact the consumers are.

Moving the manufacturing to the US will be a nightmare scenario - the foreign car manufacturers are already assembling cars in the US/Mexico, with parts made elsewhere. These parts also serve to assemble cars in other countries for their consumption. They now won't be duplicating those manufacturing lines because of some whim, and something the US congress may very well reverse. Until then, the US consumers will be filling the coffers with taxes.

 

[Lazaran]

I expected at least a modicum of intelligence.

THAT ^ is where you "might" have made your mistake…



We. Told. Them. So.

 

[MasterAnimus]

Short answer is no.

A long answer has some context for your loaded question. Because tariffs are taxes — just a specific kind.

"A tariff is essentially an import tax on goods coming into the country. It’s assessed by U.S. Customs, collected from the importer, and then deposited into the U.S. Treasury. That’s why the money ends up in the same place as income taxes, corporate taxes, and other federal revenues.

"Shipping charges, in contrast, are a private fee paid to the carrier (FedEx, UPS, USPS, etc.) to move the goods — no government tax involved there."

As a legal beagle, you should already know this. I hope you aren't engaged for tax purposes by your clients.

HisCrappy living up to his name.

 

[MasterAnimus]

Don't want to pay consumer taxes? Don't consume.

Funny - even the people who live in NOMAD states will now have to pay "consumer taxes."

 

[Saint_Ann]

Funny - even the people who live in NOMAD states will now have to pay "consumer taxes."

You have a weird sense of humor.

 

[MasterAnimus]

You have a weird sense of humor.

And you have weird sense of deflecting from the topic.

 

[ChloeTzang]

THAT ^ is where you "might" have made your mistake…

LOL. I believe you are correct! Treasure this moment. It's not often I acknowledge being an idiot. LOL

 

[Saint_Ann]

And you have weird sense of deflecting from the topic.

It's what I do. I'll survive the tarrifs. Will you?

 

[MasterAnimus]

It's what I do. I'll survive the tarrifs. Will you?

Too bad your principles don't survive as long

 

[Saint_Ann]

Too bad your principles don't survive as long

Yeah ... I don't know what that means.

 

[HisArpy]

Yeah ... I don't know what that means.

Neither does he.