• Tariffs could mean a 2M drop in car sales and cost 715K jobs, warns auto group
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https://www.nbcnews.com/business/autos/tariffs-could-mean-2m-drop-car-sales-cost-715-000-n911411?icid=recommended The impact of President Donald Trump's escalating tit-for-tat over tariffs is already being felt, say auto industry experts. New car prices are beginning to rise, and auto exports are dropping. But a new report warns that sales could plunge by as much as 2 million vehicles a year, resulting in the loss of up to 715,000 American jobs and a hit of as much as $62 billion to the U.S. GDP. The Center for Automotive Research cites the biggest concern as the threatened use of trade rules known as Section 232 that would declare foreign-made cars and car parts a threat to national security. That could trigger a “downward cycle” in an auto industry already showing signs of decline after rebounding from the Great Recession, said Kristin Dziczek, a vice president and senior economist at the Center for Automotive Research, or CAR, in Ann Arbor, Michigan. CAR’s new study is echoed by a variety of other studies looking at the potential impact of the Trump administration’s escalating trade war. Already enacted tariffs on imported aluminum and steel have added about $240 to the cost of producing a new car, truck, or crossover in the U.S., noted Peter Nagle, a senior economist with research firm IHS Markit. And the first round of tariffs with China is adding still more to the price that manufacturers have to pay for a variety of parts used on American assembly lines. Nagel estimated consumers would be “looking at price increases of $1,300 for a typical mass market product, up to $5,800 for a luxury vehicle.” Those increases would not be limited to just imported vehicles. Toyota, for example, has forecast the price of a U.S.-made Camry would rise about $1,600. In line with the new CAR study, IHS forecasts U.S. new vehicle sales would plunge by around 2 million vehicles annually, to 16.5 million a year from 2019 to 2025. Add the possible tear- up of the North American Free Trade Agreement and the impact could be devastating. The impact could mean more than just higher costs. A number of medium-sized and smaller parts suppliers could be forced out of business, unable to afford the cost of relocating their operations back to the U.S. That could result in disruptions at assembly plants, said Nagle, possibly meaning shortages of some products, and a big hit to automakers’ profits. With auto sales already declining, manufacturers have been struggling to minimize the impact on consumers from tariff-related cost increases. But, at some point, they will have to pass them on, resulting in higher sticker prices. But consumers are already struggling to deal with their car payments, driven up as the cost of the typical vehicle sold in the U.S. approaches $35,000.
And Trump wants to kick Canada out of NAFTA if we don't bend to his unreasonable demands, which would fuck up the car supply chain even more. The Art of the Deal, folks.
right on the heels of a general slowdown in the auto market too, not good. But hey, MAGA! and uh don't apply for unemployment because we don't believe in government handouts.
And who will be hut the most? The "American" carmakers who make half their cars in Mexico or China. Nevermind the fact that companies like Toyota make their cars in the States.
Just ignore the soybean farmer bailout... nothing to see here...
It's kinda funny but scary. All these business types likely thought he was going to restrict shit so they can make more money. Instead he is costing them money now.
Is there a central resource that has all these aftereffects of the trade war? I'm trying to find articles about the fallout from this but it's hard to find specifics that aren't either hearsay or from biased sources like Mother Jones.
WE DID IT WE'RE WINNING
Just think of all the deals you can make if you make everyone have to start over from square one! Complete national and maybe even global economic ruin? Gotta take some risks, double down now and then!
Tidhs is wart WGNNIGG loukes lic!
What's with this comment implying that everything has to be made in America? It makes no sense to assemble a car in the us to ship it across the planet.
ya every article or report about farmers has been "Oh i mean its hurting and i'm on the verge of bankruptcy but hey maybe we'll make more money after we get better trade deals." american ag exports are already fucking huge, we dominate any market we export to and that's not an overexageration, that's why many countries have felt the need to enact some trade barriers to protect domestic food production. Then that's not even touching the massive chain of futures, commodities, transportation ect ect which affect the buying price of their products. then the biggest damning thing about this admin is that they have absolutely no clue about trade negotiations. sure they are great at tariffs but obama had hundreds of people, a fully staffed state department and many senior level administration officials devoted to a unified trade policy. Trump's admin is empty and incapable of the long planning and negotiating required to pull anything off. They have so far only gotten one major trade deal and that was from a lame duck mexican government that is replaced in 2 months.
The Center for Automotive Research cites the biggest concern as the threatened use of trade rules known as Section 232 that would declare foreign-made cars and car parts a threat to national security. Holy dumbfuck, what is this shit.
It's just because an obscure law lets the President unilaterally (I think) do tariffs on items he deems to be a national security threat.
And the way Trump is using it is basically going to break the WTO because Trump is using national security as an excuse to utterly disregard the WTO's rules, and every other nation has the same ability. He's basically pushed the button everyone previously agreed should not be pushed, and it can't be unpushed. He's introduced chemical weapons to the trade environment, metaphorically speaking, and there's no going back to a world without.
Can I just say that the Center for Automotive Research has an exceptional acronym.
Isn't his whole reason for putting these tariffs been to bring back jobs to America? Who could've seen it coming that the tariffs would only hurt the US more?
Anyone who could tell that Trump has absolutely no fucking idea how international commerce and trade works. He has such a simplistic view of things, he's dealing with the mental equivalent of Duplo blocks.
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