Trump threatens German carmakers with 35 percent U.S. import tariff - Polidicks

[url]http://www.reuters.com/article/us-usa-trump-germany-autos-idUSKBN1500VJ[/url] [quote]U.S President-elect Donald Trump warned German car companies he would impose a border tax of 35 percent on vehicles imported to the U.S. market, a plan that drew sharp rebukes from Berlin and hit the automakers' shares. In an interview with German newspaper Bild, published on Monday, Trump criticized German carmakers such as BMW (BMWG.DE), Daimler (DAIGn.DE) and Volkswagen (VOWG_p.DE) for failing to produce more cars on U.S. soil. "If you want to build cars in the world, then I wish you all the best. You can build cars for the United States, but for every car that comes to the USA, you will pay 35 percent tax," Trump said in remarks translated into German. "I would tell BMW that if you are building a factory in Mexico and plan to sell cars to the USA, without a 35 percent tax, then you can forget that," Trump said.[/quote] Here's the German minister of economy Sigmar Gabriel blowing Trump the fuck out [quote]‘The American car industry is getting worse, weaker and more expensive ... [highlight]The U.S. needs to build better cars.’[/highlight][/quote] [url]http://www.marketwatch.com/story/german-minister-to-trump-after-tax-threat-the-us-needs-to-build-better-cars-2017-01-16[/url] Also, Trump doesn't realize most of the Benzes (Daimler) sold in the U.S come from Tuscaloosa, Alabama [url]https://en.wikipedia.org/wiki/Mercedes-Benz_U.S._International[/url] [t]http://images.hgmsites.net/lrg/mercedes-benz-c-class-production-in-tuscaloosa-alabama_100470448_l.jpg[/t] Who knew Mercedes was so southerner and American?

Tariffs would surely cripple the US economy especially if companies reply like for like.

And so begins what I imagine will be 4 years of pathetic bully tactics that embarrass the US on a global scale.

He's apparently unaware that we are, for the auto industry, what china is for consumer electronics. He should go looking at VINs for 'foreign' cars, 99% of the time they'll start with a 1. Fun fact: one of my Fords, something he would call a domestic, would trigger his stupid little tariff!

They're already doing that, and if it's anything like the cars from the Volkswagen group, then the general end-result is worse than those actually made in Germany. Sigmar Gabriel basically says it like it is, part of the problem might be the work morale among the common assembly worker in the US being shit. Maybe tackle that first before waving the presidential dick around regarding import tariffs [QUOTE=TestECull;51680302]He's apparently unaware that we are, for the auto industry, what china is for consumer electronics. He should go looking at VINs for 'foreign' cars, 99% of the time they'll start with a 1. Fun fact: one of my Fords, something he would call a domestic, would trigger his stupid little tariff![/QUOTE] Ford is as international as a company can get. The somewhat popular Transit Connects are all made in the EU as four-seaters, and then converted to panel vans (if desired) in the US to circumvent the chicken tax. Set up a system based on arbitrary regulations, and it's gonna be gamed to hell and back.

[QUOTE=GhillieBacca;51680250][url]http://www.reuters.com/article/us-usa-trump-germany-autos-idUSKBN1500VJ[/url] Here's the German minister of economy Sigmar Gabriel blowing Trump the fuck out [url]http://www.marketwatch.com/story/german-minister-to-trump-after-tax-threat-the-us-needs-to-build-better-cars-2017-01-16[/url] Also, Trump doesn't realize most of the Benzes (Daimler) sold in the U.S come from Tuscaloosa, Alabama [url]https://en.wikipedia.org/wiki/Mercedes-Benz_U.S._International[/url] [t]http://images.hgmsites.net/lrg/mercedes-benz-c-class-production-in-tuscaloosa-alabama_100470448_l.jpg[/t] Who knew Mercedes was so southerner and American?[/QUOTE] He does realise that. It says any cars brought into the country, not built in the country. The idea being if German automakers want to play ball they have to build the cars domestically, otherwise there's going to be an import tarrif. In theory while it would increase the costs of these vehicles, it would bring jobs here in the US for domestic production. What can happen in practice is a different story.

[QUOTE=UncleJimmema;51680327]He does realise that. It says any cars brought into the country, not built in the country. The idea being if German automakers want to play ball they have to build the cars domestically, otherwise there's going to be an import tarrif. In theory while it would increase the costs of these vehicles, it would bring jobs here in the US for domestic production. What can happen in practice is a different story.[/QUOTE] I can easily see the cars being manufactured as knock-down kits somewhere else in the world, but still assembled enough so they [I]JUST [/I]circumvent the regulations, and then final bits added in the US.

[QUOTE=TestECull;51680302]He's apparently unaware that we are, for the auto industry, what china is for consumer electronics. He should go looking at VINs for 'foreign' cars, 99% of the time they'll start with a 1. Fun fact: one of my Fords, something he would call a domestic, would trigger his stupid little tariff![/QUOTE] My dad is a very patriotic dude. And when he was going shopping for a new truck, he pretty just skipped right over every "American" truck because of this and wanted a Toyota instead, because they actually build them here. Though article does account for that. It'll be pretty weird if these tariffs actually go into place trying to figure out which cars have their prices jacked up 35%, since you can't just look at nationality.

[QUOTE=RainbowStalin;51680281]And so begins what I imagine will be 4 years of pathetic bully tactics that embarrass the US on a global scale.[/QUOTE] What was the second gulf war and gwb?

If they have to move their factories to the US, any new one which has to be set up is undoubtedly going to be very automated since they are building a new facility. (Possibly) with less competition, you might see some cars go up in price even though they are manufactured in the US.

[QUOTE=Ogopogo;51680413]If they have to move their factories to the US, any new one which has to be set up is undoubtedly going to be very automated since they are building a new facility. (Possibly) with less competition, you might see some cars go up in price even though they are manufactured in the US.[/QUOTE] well the GOP is all about feel-good measures that make good sound bytes for voters but in practice only cause more harm, so this is right in stride for them

It's like he believes only the U.S. makes cars.

so hypathetically if they DID decide to make US jobs, the chilling effect on investment in the US will be so horrible because EVERY job anyone makes will suddenly be perminent under threat of massive fines, its like the most rediculous way to reach the perminent jobs europe has

Maybe if more people bought American-built cars, then it wouldn't be a problem. But as the German Economy Minister said, maybe American-built cars should actually be built better, to be a worthy alternative to imports. That would be the free market at work. A lot of people here love to point their fingers at the federal government, South Australia state government, unions etc for why Ford Australia and GM Holden stopped manufacturing cars here, meanwhile, those exact same people drive around in cars built in Japan, Thailand or Europe. It's both the fault of the consumers and their preferences, and the makers for not building cars that consumers want.

Schrodinger's free market strikes again!

[QUOTE=RenegadeCop;51681627]Yeah this sounds like an attack against the free market, honestly. Why should we deal with inferior domestic products when we can buy cheaper, better quality over seas?[/QUOTE] You think people like him actually believe the free market?

[QUOTE=Mr. Someguy;51681954]You think people like him actually believe the free market?[/QUOTE] Why should I build quality products for the American people? They're dumb as bricks as is. Cutting taxes across the board for my American conglomerate because the person we voted in was going to do it anyway. So tell me economists of the right; [B]why should I build quality products to sell to the American people, when my tax will be cut regardless of what I do?[/B] All thanks to the man wearing red, white, and blue (little bit of orange too).

[QUOTE=Mr. Someguy;51681954]You think people like him actually believe the free market?[/QUOTE] [url]http://www.dailywire.com/news/11514/trump-outsourcing-dumb-market-not-free-market-robert-kraychik[/url] Course not

Welp we'll see how he fixes a problem he can't tax cut his way out of.

[QUOTE=RenegadeCop;51681627]Yeah this sounds like an attack against the free market, honestly. Why should we deal with inferior domestic products when we can buy cheaper, better quality over seas?[/QUOTE] Trump has so far shown no interest in the Free Market. So far he's committed to attacking businesses that don't play his game. He's a Crony Capitalist to the T. The Republicans will be okay with this since he's not a Democrat.

Watch all foreign investment in the US dry up in less than 2 years if he keeps this up

So does my Ford Focus produced in Saarlouis count as a German car or an American car? Just because they're an American company doesn't mean that production occurs in a foreign country and vice versa.

[QUOTE=Propane Addict;51682659]So does my Ford Focus produced in Saarlouis count as a German car or an American car? Just because they're an American company doesn't mean that production occurs in a foreign country and vice versa.[/QUOTE] It's a German made car by an American Company. If that was the case, then Apple would be a Chinese company. In a globalized economy, things can be made away from their HQ. In a [I]true[/I] free market, things would be made where the cost of manufacturing and delivery are minimized. (AKA China). It seems like Trump wants to create a government interventionalist economy where he can bully companies into manufacturing in the United States [I]or else[/I] in 140 characters.

I honestly hope Musk wasn't party to this in order to produce more Tesla's for domestic sale & export.

[QUOTE=OvB;51682672]It's a German made car by an American Company. If that was the case, then Apple would be a Chinese country. In a globalized economy, things can be made away from their HQ. In a [I]true[/I] free market, things would be made where the cost of manufacturing and delivery are minimized. (AKA China). It seems like Trump wants to create a government interventionalist economy where he can bully companies into manufacturing in the United States [I]or else[/I] in 140 characters.[/QUOTE] I don't think you can just bully people into doing what you want, you have to make it mutually beneficial. I'm not a businessman with a over-inflated brand though.

[QUOTE=Lambeth;51682682]I don't think you can just bully people into doing what you want, you have to make it mutually beneficial. I'm not a businessman with a over-inflated brand though.[/QUOTE] In this case, it would be the threat of a 35% tariff on foreign goods that would be the bullying. In the past, he singles out companies on Twitter for building factories in Mexico. I'm [I]extremely[/I] in favor of building manufacturing plants in the United States, but I don't believe in the chief executive of a nation singling out companies on twitter to do so. Companies should want to work here, not feel obligated to. Do what you gotta do to get to that, but don't threaten foreign companies to do it.

[QUOTE=Bradyns;51682679]I honestly hope Musk wasn't party to this in order to produce more Tesla's for domestic sale & export.[/QUOTE] I doubt it. Musk's business model has never involved any sort of crony capitalism or anything. It'd be very far out in left field tbh.

[QUOTE=F.X Clampazzo;51682853]I doubt it. Musk's business model has never involved any sort of crony capitalism or anything. It'd be very far out in left field tbh.[/QUOTE] To be fair, Musks business model is heavily interested in government investment.

[QUOTE=OvB;51682983]To be fair, Musks business model is heavily interested in government investment.[/QUOTE] SpaceX yes (a lot of space launch contracts are going to be government related), but Tesla?

Tesla too. But Musk got government money but that doesn't mean he has government agenda.