The trade and economy mega-thread (6 Viewers)

[superchuck500]

Is there a trade deal with China? Is it really a deal or just a pull-back to status quo ante? Is Trump advancing US interests in this well-executed trade battle plan or was this poorly conceived from the start . . . and harmful?

I think the jury's still out, but I haven't seen that the Chinese are offering much in compromise - and it's not even clear if there's going to be an agreement. But it's clear they are working on something and I'm sure Trump will sell it as the greatest trade deal ever. The proof will be in the details.

 

[TampaJoe]

i think thats a big misunderstanding-

car mfg PLANTS are "Assembly" lines. Everything needed to "assemble" is shipped in to the plant for them to "put together"

There are no engine plants next door, walking over an engine upon completion. No gear shift maker next door, no transmission maker, no upholstery, no audio maker etc etc.

It all arrives at assembly plant separated and then assembled.

Ever see a diagram of an engine and its parts? over 50 individual parts- all of which are made elsewhere. So THAT has an effect.

here is a 2004 honda accord engine diagram



Trump has folks thinking the Honda plan in Indiana builds everything the car needs from engine to final product. They dont

That is my understanding as well. A former client supplied parts for GM and Ford which were shipped to Mexico and used to produce components which were then shipped back across the border to assembly lines here in the states. Car plants don’t maintain large parts and component inventories. Everything is shipped from suppliers “just in time”. There are huge fines and penalties charged back to those suppliers if they do not meet their obligations as it could shutdown a production line at the auto manufacturer. This I know first hand.

So tariffs will impact the costs to manufacture autos here in the US almost immediately because the car plants don’t maintain large parts inventory. Everything goes into production very quickly so any change in supply cost would be felt almost immediately.

 

[Lapaz]

Not only will tariffs immediately raise the costs of all cars, since imported cars will get more expensive, so I'm sure domestic car makers will take advantage of that by raising their prices, since they won't have to compete as much, but also domestic cars will become more expensive to manufacture since U.S. workers are more expensive. Aside from taking advantage of the lowered cost pressures, domestic manufacturers will have to pay more for some parts in the short term due to the tariffs, and then in the long term due to the cost to manufacture in the U.S., so some of the domestic price increases won't be entirely opportunistic.

 

[Lapaz]

that list includes Canada and is for "contents" ( components )

pretty sure you gonna need to parse out Canada here soon to get a factual % of "components" mfg in US. ( not car- components ) not affected by tariffs.

So if 80% of vehicle components are mfg outside/imported for final assembly, and that cost is 80% of the vehicle price, on a $40,000 MSRP, the new MSRP would be $48,000
( 40,000 x.80 = $32,000 x 25% = $8000. Add $40,000 plus the tariff charge of $8000 on components imported )

How much is it going to cost to manage this menagerie of regulatory tariffs? Who's going to be responsible to calculate these percentages and piece-part tariffs? Is the commerce department about to hire a lot of people?

 

[efil4]

How much is it going to cost to manage this menagerie of regulatory tariffs? Who's going to be responsible to calculate these percentages and piece-part tariffs? Is the commerce department about to hire a lot of people?

Im sure Elon has a plan for AI lol

 

[longtime lurker]

"Tariffs should be a Congressional-initiated action," Bacon said. “I think we made a mistake. In the past, we passed legislation that gave the president some temporary tariff authority. And I think we should look back and maybe restore the power back to Congress."

"We made a mistake": GOP Rep. Bacon suggests limiting Trump's presidential tariff powers

Congressman Don Bacon says the president was never meant to have broad tariff power under the Constitution

www.salon.com

 

[DaveXA]

"We made a mistake": GOP Rep. Bacon suggests limiting Trump's presidential tariff powers

Congressman Don Bacon says the president was never meant to have broad tariff power under the Constitution

www.salon.com

Clawing back power from the President in this environment is damn near impossible. Congress shirked their duties when they had the had the chance to do the right thing. FAAFO.

 

[DJ1BigTymer]

I don't want to hear shirt from any GOP official or GOP voter about how Democrats support socialist policies!

This, right here, is the GOP POTUS telling private companies how to set their prices.

 

[efil4]

So
Consumer confidence lowest level since Nov 2022
Inflation accelerated
Core personal consumption index rose to 2.8% - Wall st expected 2.7%

and the root cause is Trumponomics

 

[Optimus Prime]

Canadian officials are making their voices heard against tariffs through digital billboards in multiple states.

Billboards such as those spotted in the Metro Detroit area this week read, "Tariffs are a tax on your grocery bill."

CBS News Detroit reached out to the Government of Canada, which paid for the ad, on Wednesday. John Babcock, spokesperson for Global Affairs Canada, sent a statement Thursday, saying that the billboards were placed in Arizona, Colorado, Florida, Georgia, Michigan, Minnesota, Nevada, New Hampshire, North Carolina, Ohio, Pennsylvania and Wisconsin, as well as Washington, D.C., and surrounding areas.

"The Government of Canada has launched an educational campaign to inform Americans of the economic impacts of tariffs. The campaign is a strategic investment in Canada's long-term economic interests, and its trade relationship with the United States," Babcock said.

"Tariffs are a tax on hard-working Americans in their daily lives. They lead to increased costs on everyday essentials, including fuel and groceries. The purpose is to increase the understanding of the American public and to counter misinformation."…….

Canadian government launches billboards in multiple U.S. states touting anti-tariff messages

Billboards such as those spotted in the Metro Detroit area this week read, "Tariffs are a tax on your grocery bill."

www.cbsnews.com

 

[Maxp]

Please everyone call your congress men and women and let them have it over this lunacy.

 

[Optimus Prime]

Donald Trump has told NBC News that he “couldn’t care less” if automakers raise their prices in response to his new tariffs on imported cars, which he also says are “permanent.”

The president told Kristen Welker in a phone interview that he believed it would encourage people to buy American-made vehicles. Nearly half of the vehicles sold in the U.S. are imported, as well as almost 60 percent of parts in cars assembled in the country……..

Trump says he ‘couldn’t care less’ if car prices go up as industry braces for tariffs

President believes taxing imports will force people to buy American-made cars

www.independent.co.uk

 

[Optimus Prime]

President Donald Trump is urging senior advisers to adopt a more aggressive stance on tariffs as the administration prepares for a major escalation in its global trade war, The Washington Post reports, citing four individuals familiar with the matter.

Despite worries from allies on Wall Street and Capitol Hill about the impact of tariffs and calls for a more measured approach, Trump continues to advocate for sweeping trade actions under the belief that it will be beneficial for the American economy.

He believes tariffs will both generate trillions of dollars in government revenue and revitalize domestic manufacturing.

Economists warn that sweeping taxes on imported goods will ramp up inflation, and those costs will hurt American consumers. The stock market has fallen with each restatement of the president’s wishes.

The Post reports that the president has repeatedly told his advisers that he wants to increase trade measures against U.S. trade partners and allies and, in recent days, he has revived the idea of a universal tariff that would apply to most imports, regardless of their country of origin.…….

Trump tells advisers to be more aggressive with tariffs, report says

President has declared April 2 ‘Liberation Day’ as he prepares to unveil reciprocal tariffs on all U.S. trading partners

www.independent.co.uk

 

[Dragon]

President Donald Trump is urging senior advisers to adopt a more aggressive stance on tariffs as the administration prepares for a major escalation in its global trade war, The Washington Post reports, citing four individuals familiar with the matter.

Despite worries from allies on Wall Street and Capitol Hill about the impact of tariffs and calls for a more measured approach, Trump continues to advocate for sweeping trade actions under the belief that it will be beneficial for the American economy.

He believes tariffs will both generate trillions of dollars in government revenue and revitalize domestic manufacturing.

Economists warn that sweeping taxes on imported goods will ramp up inflation, and those costs will hurt American consumers. The stock market has fallen with each restatement of the president’s wishes.

The Post reports that the president has repeatedly told his advisers that he wants to increase trade measures against U.S. trade partners and allies and, in recent days, he has revived the idea of a universal tariff that would apply to most imports, regardless of their country of origin.…….

Trump tells advisers to be more aggressive with tariffs, report says

President has declared April 2 ‘Liberation Day’ as he prepares to unveil reciprocal tariffs on all U.S. trading partners

www.independent.co.uk

He want to go back in time and remove the taxation on income. A billionaires dream

 

[Optimus Prime]

Donald Trump has told NBC News that he “couldn’t care less” if automakers raise their prices in response to his new tariffs on imported cars, which he also says are “permanent.”

The president told Kristen Welker in a phone interview that he believed it would encourage people to buy American-made vehicles. Nearly half of the vehicles sold in the U.S. are imported, as well as almost 60 percent of parts in cars assembled in the country……..

Trump says he ‘couldn’t care less’ if car prices go up as industry braces for tariffs

President believes taxing imports will force people to buy American-made cars

www.independent.co.uk

Other than anti trans there was no bigger pillar of Trump's campaign than inflation

"Prices will go down day one"

Remember that?

Many people voted for him (or claimed to) solely to bring down prices

Here he is in an interview saying he doesn't care if prices go up and stay up

Where is the outrage and feelings of betrayal?

With everything going on, this will hardly be the straw that broke the camel's back or become Trump's "read my lips, No new taxes" moment

But I still think that this should have gotten more coverage than it did

 

[efil4]

hold on to your hat. GDP revision to Q1 growth- was 2.8- revised to .3.

https://www.cnbc.com/2025/03/31/first-quarter-gdp-growth-will-be-just-0point3percent-as-tariffs-stoke-stagflation-conditions-says-cnbc-survey.html

 

[efil4]

just off call with FA

so tariffs- gave me a bit of insight into just what it means.

Said shipping- a container ship pulls into Mobile - the docking fee was around $125,000. With the tariffs, that fee goes to $1-1.2mm.

That will effectively halt importing - Thinks the April 2nd tariffs will be short lived because there is just no way to absorb that in the economy.

 

[MT15]

 

[efil4]