The trade and economy mega-thread (2 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.

 

[efil4]

So they sold the part for the $495 it's currently listed at, but while I was waiting I did some math and figured out exactly how much the price changed in the last week and half. It was originally about $338, then got a 10% increase to $371 (the difference between the Sunday listing for the previous week price that I initially found and the Monday listing of the new price the next day when I made the appointment). Then from last week to this week it increased another 33% to the $495. Ridiculous.

and that part was in stock

meaning they originally bought at pre-tariff pricing.

However, now to replace that inventory, they jacked up the cost to match same margins as if it were subjected to tariff, so as not to lose a DIME on restocking new tariff-laden part.

Here is the kicker- if by some chance the tariff is removed before they order that part to keep on hand, they just made 45% on your sale. ( highly unlikely that will happen )

i still dont know how some folks think tariffs arent paid by the customer.

 

[efil4]

They already had the part stock? Or do they need to order it?

If they already have the part in stock, that sounds like just straight price gouging.

iirc they only had that one in stock.

 

[Optimus Prime]

New York (CNN) — President Donald Trump signed an executive order and a proclamation on Tuesday to ease auto tariffs, the latest abrupt shift in a rapidly changing tariff policy that has left businesses scrambling to keep up.

The 25% tariff on imported cars will continue, and a new 25% tariff on auto parts will go into effect this weekend, as previously announced. But there’s some new fine print.

The new actions Trump signed allow reimbursements for domestic car producers importing car parts, which will be subject to 25% tariffs starting May 3.

The maximum reimbursement will be 3.75% of the value of domestically produced cars. The cap will decrease to 2.5% for the second year and be phased out entirely thereafter.

The changes would also shield auto manufacturers from facing multiple auto-related tariffs. Instead, they will only be subject to the highest tariff associated on whatever they’re importing.

That means, for instance, they could end up paying a 25% tariff on a car part and not additional 25% tariffs on the steel and aluminum used in them.

Cars containing a combined 85% of parts that comply with the United States-Mexico-Canada Agreement and produced domestically effectively won’t face any tariffs.

The decision to ease auto tariffs came as Trump fielded calls from multiple CEOs of automakers, three White House officials familiar with the discussions told CNN.

“The president wants to maintain flexibility,” one of the officials, granted anonymity to detail private conversations, told CNN……

Trump eases auto tariffs in move aimed at increasing domestic production | CNN Business

President Donald Trump signed an executive order and a proclamation on Tuesday to ease auto tariffs, the latest abrupt shift in a rapidly changing tariff policy that has left businesses scrambling to keep up.

www.cnn.com

 

[bird]

New York (CNN) — President Donald Trump signed an executive order and a proclamation on Tuesday to ease auto tariffs, the latest abrupt shift in a rapidly changing tariff policy that has left businesses scrambling to keep up.

The 25% tariff on imported cars will continue, and a new 25% tariff on auto parts will go into effect this weekend, as previously announced. But there’s some new fine print.

The new actions Trump signed allow reimbursements for domestic car producers importing car parts, which will be subject to 25% tariffs starting May 3.

The maximum reimbursement will be 3.75% of the value of domestically produced cars. The cap will decrease to 2.5% for the second year and be phased out entirely thereafter.

The changes would also shield auto manufacturers from facing multiple auto-related tariffs. Instead, they will only be subject to the highest tariff associated on whatever they’re importing.

That means, for instance, they could end up paying a 25% tariff on a car part and not additional 25% tariffs on the steel and aluminum used in them.

Cars containing a combined 85% of parts that comply with the United States-Mexico-Canada Agreement and produced domestically effectively won’t face any tariffs.

The decision to ease auto tariffs came as Trump fielded calls from multiple CEOs of automakers, three White House officials familiar with the discussions told CNN.

“The president wants to maintain flexibility,” one of the officials, granted anonymity to detail private conversations, told CNN……

Trump eases auto tariffs in move aimed at increasing domestic production | CNN Business

President Donald Trump signed an executive order and a proclamation on Tuesday to ease auto tariffs, the latest abrupt shift in a rapidly changing tariff policy that has left businesses scrambling to keep up.

www.cnn.com

“The president wants to maintain flexibility…”

The president is a brain-damaged forking imbecile.

 

[Booker]

iirc they only had that one in stock.

Yep, the part was in stock. And the "in stock" price was actually about $650 -- I had to show them the online price to get them to come off of that. If I had just gone ahead and ordered the part when I first saw it I would have saved $157, but I wanted to make sure they could also install it, and then the woman I talked to said she had one in stock and she'd set it aside for me.

 

[MT15]

Yep, the part was in stock. And the "in stock" price was actually about $650 -- I had to show them the online price to get them to come off of that. If I had just gone ahead and ordered the part when I first saw it I would have saved $157, but I wanted to make sure they could also install it, and then the woman I talked to said she had one in stock and she'd set it aside for me.

As already mentioned, that’s price gouging.

 

[longtime lurker]

Funny how it works out like that….

Only Teslas Exempt from New Auto Tariffs Thanks to 85% Domestic Content Rule - FuelArc News

In a major policy shift, U.S. Commerce Secretary Howard Lutnick announced that vehicles with 85% or more domestic content will be fully exempt from new tariffs on automobiles. That’s a steep threshold, and as of today, there’s only one automaker that qualifies for the exemption: Tesla. Tesla...

fuelarc.com

 

[Optimus Prime]

Trump doubles down on trade war with China and insists Americans ‘signed up for this’

The president also denied that there would be tough economic periods for Americans, saying instead that he believed ‘great times’ were ahead

www.independent.co.uk

 

[MT15]

This is pretty good

 

[UriUT]

This is pretty good

When he talks about taxation made me mockingly laugh at anyone who thinks that government should operate like a corporation. If it does, our government would raise tax rates at x% of our income to make as much as possible. Pea size brains listening to trump's peanut sized brain is why we are in this much trouble.

 

[Neworleansfan]

First quarter GDP comes in as -0.3%. We are fork with Trumpconomy.

 

[efil4]

First quarter GDP comes in as -0.3%. We are fork with Trumpconomy.

the snowball is now leaving the mountain top.

There is a very short window to stop it before it gains momentum downhill.

The only thing that will adjust GDP at this point will be government spending - which i suspect will ramp up here in short order to maintain the guise of a healthy economy, when its merely smoke and mirrors. Things are going to evolve rapidly over the next 6-9 months. Especially if the US/China trade war doesnt get resolved quickly. ( and China is showing no signs of capitulating )

As for market, luckily that GDP was partially baked in over last few weeks so its not reacting as bad as it could have been. But its still early, there are more forecasts to come today, ( analysts ) , so it can still be subjected to negative momentum.


one last note- the PCE- personal consumption expenditures price index- jumped from 2.4 to 3.6% annualized ( Q4 2024 to Q1 2025 ) - this is the FEDS main "inflation gauge"

https://www.cnbc.com/2025/04/30/gdp-q1-2025-.html?taid=681219e68745050001de2336&utm_campaign=trueanthem&utm_content=main&utm_medium=social&utm_source=twitter

 

[efil4]

 

[UriUT]

First quarter GDP comes in as -0.3%. We are fork with Trumpconomy.

Propagandists aren't happy.

 

[superchuck500]

First contraction since Covid

 

[UriUT]

First contraction since Covid

Consumer confidence was covid level so this contraction shouldn't be a surprise. Man, Americans are stupid. Every economists...expertise in their field....warned them. "Do your own research" culture. My god...you can't fly a plane with do your own research. I can't duplicate fancy dishes no matter the number of youtube videos I've watched. And I've tried many many times.

 

[efil4]

I can't duplicate fancy dishes no matter the number of youtube videos I've watched. And I've tried many many times.

ok i loled

i did this not 2-3 weeks ago- had lunch at local steakhouse - had "tips n grits" - braised tenderloin tips over corn grits. it was so good that i just had to replicate at home.

not even close. lol. my corn grits came out "edible" but my wife n kids were like " wtf is this?" lol

 

[efil4]

Propagandists aren't happy.

"Dow hits lows of the day at....."

the DAY JUST STARTED LOL.