Industry News: Trump Raises Tariffs on All Mexican Goods

[Drew Dowdell]

Not content with a trade war just with China, Donald Trump has opened a second front in what is slowly turning into a trade world war.   Yesterday evening, Trump announced that beginning June 10th a 5% tariff would be slapped on all Mexican products coming into the country. That tariff would increase to 10% by July 1st and then go to its 25% maximum in October.  For automakers with razor thin margins, there is absolute certainty that the American consumer will end up paying these tariffs. 

The White House said in a statement:

Quote

If the illegal migration crisis is alleviated through effective actions taken by Mexico, to be determined in our sole discretion and judgment, the Tariffs will be removed. If the crisis persists, however, the Tariffs will be raised to 10 percent on July 1, 2019. Similarly, if Mexico still has not taken action to dramatically reduce or eliminate the number of illegal aliens crossing its territory into the United States, Tariffs will be increased to 15 percent on August 1, 2019, to 20 percent on September 1, 2019, and to 25 percent on October 1, 2019. Tariffs will permanently remain at the 25 percent level unless and until Mexico substantially stops the illegal inflow of aliens coming through its territory.

Goods from Mexico account for 13.6 percent of all imported goods to the U.S, totaling about $346.5 billion. Automobiles and their components are high on the list of goods that are imported from Mexico.  Further complicating matters is that components can move over the border up to 20 times before reaching their final assembly location. 

General Motors and other domestic manufacturers are going to be hit especially hard.  GM imported 811,000 vehicles from Mexico last year. One of their recent vehicles, the Chevrolet Blazer, caused a stir for being Mexican built when it was put on display at Comerica Park in Detroit at a time when GM was closing five U.S. manufacturing facilities. General Motors eventually took the display down and replaced it with a US built Traverse. 

Stocks fell sharply Friday morning in response to the tariff announcement. 

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[Drew Dowdell]

Trump is going to tax the American People because Mexico is not fixing crushing poverty and gang violence in El Salvador and Guatamala.

K

[Anthony Fongaro]

Thank god my Mexican-made Golf GTI made it out before this. Even so, he isn’t aware or care that he is hurting automakers. #sad

[riviera74]

I do not think the president cares if he hurts the auto industry or not.  More of these actions may lead our economy to a recession that is unwarranted.  Trade wars rarely go well for anyone.

[smk4565]

1 hour ago, Drew Dowdell said:

Trump is going to tax the American People because Mexico is not fixing crushing poverty and gang violence in El Salvador and Guatamala.

K

Exactly right.  Because either cost of goods goes up 5% and American consumers pay more, or companies like GM take a 5% hit in margin, and most auto companies are running 5% margin anyway.  He could impose a 50% tariff and immigration would not change at all.

Even more stupid is the fact that we need more workers in this country and aren’t letting them in.

 

 

[surreal1272]

Honestly it’s just too easy to point the endless stupidity involved with these tariffs especially with a neighboring country with which we have a pending NAFTA 2.0 deal that eliminates said tariffs. Just beyond a stupid move from the king of stupid moves. 

[Potluck]

But I thought we had a new NAFTA already.

[surreal1272]

32 minutes ago, Potluck said:

But I thought we had a new NAFTA already.

It hasn’t been ratified and it won’t even come to a vote until the fall at the earliest. It’s also not even likely to get passed at this rate. 

[Drew Dowdell]

 

Carmakers See $18 Billion Wiped Out by Trump’s Mexico Threat

https://finance.yahoo.com/news/carmakers-see-18-billion-wiped-140214375.html

[David]

5 hours ago, riviera74 said:

I do not think the president cares if he hurts the auto industry or not.  More of these actions may lead our economy to a recession that is unwarranted.  Trade wars rarely go well for anyone.

He clearly does not care as he is not even capable of supporting America by buying and driving American. He used to brag about how great his Bentley or Rolls was, so let him move to those countries he loves to support and leave us alone.

5 hours ago, riviera74 said:

I do not think the president cares if he hurts the auto industry or not.  More of these actions may lead our economy to a recession that is unwarranted.  Trade wars rarely go well for anyone.

So much for the Art of the Deal!, Clearly our current leadership is clueless on how to best lead America and show leadership to the world.

Sadly, this is giving the Chinese the ability to take the new world leadership role from America. The future is grim on many fronts due to poor guidance and planning of America.

Some have said with the Amount of US debt owned by China, 

"Welcome to the Peoples Republic of America, a sovereign nation of China." 

😢

[FAPTurbo]

i know white americans would throw their own mothers into a jet engine so they could continue being racist to hispanics ...

but voting for someone who’ll raise the price on their pickup trucks? this must be one heckuva conundrum for the double-chinned Natty Ice and Oakley crowd.

Edited May 31, 2019 by FAPTurbo

[balthazar]

^ speaking from first-hand experience hanging out with your underwear-inspecting militia buddies?

[oldshurst442]

2 hours ago, dfelt said:

He clearly does not care as he is not even capable of supporting America by buying and driving American. He used to brag about how great his Bentley or Rolls was, so let him move to those countries he loves to support and leave us alone.

Lets be fair though...

 

But...once a liar...always a liar...

Once a blowhard...always a blowhard...

http://gmauthority.com/blog/2016/02/the-tale-of-donald-trumps-dotted-history-with-cadillac/

 

 

Quote

 

Donald Trump is a Cadillac kind of man it seems. According to Automotive News, during the unveiling of the current-generation Cadillac Escalade, Trump commented to an executive, “You did a great job. I think it’s beautiful. I want to buy one immediately.”

The love affair dates back to the 1980s, when Trump, or so his side of the story goes, was approached by Cadillac to develop a super-stretch limousine bearing his name. Two versions were planned: the Trump Golden Series and the Trump Executive Series, the latter being slightly less lavish.

In 1988, the two prototypes were completed, featuring every 1980s creature-comfort one could imagine, including a TV, VCR, fax machine, paper shredder and a cell phone.

Then-Cadillac General Manager, John Grettenberger, remembers it a little differently.

“He would input to the interior styling of the vehicle and allow Cadillac to use his name in promotional activity,” Grettenberger wrote in his 2011 book, Ready, Set, Go! My Life at General Motors, Cadillac, Oldsmobile, Opel, and Isuzu.  “By doing so he intended to purchase fifty of them for his personal use. He was looking for means to transport high rollers from New York City to his hotel and casinos in Atlantic City and return.”

After agreeing to build two prototypes, Grettenberger wrote of the happenings that took place after the fact.

“The two prototypes were built but when it came down to approving the transaction and placing a purchase order for the fifty limos, nothing happened! Donald gave all sorts of reasons for a delay, purchased one for ‘his father,’ but no order for the remaining forty-nine. I’m not even sure what happened to the second prototype. … So much for the Trump limousine!”

And so the tale ends of Trumps two Cadillac limousines.

 

 

 

Edited May 31, 2019 by oldshurst442

[smk4565]

4 hours ago, Drew Dowdell said:

 

Carmakers See $18 Billion Wiped Out by Trump’s Mexico Threat

https://finance.yahoo.com/news/carmakers-see-18-billion-wiped-140214375.html

No price too steep to stop rapists and murderers flooding our streets.  🙄

2 hours ago, dfelt said:

Sadly, this is giving the Chinese the ability to take the new world leadership role from America. The future is grim on many fronts due to poor guidance and planning of America.

Some have said with the Amount of US debt owned by China, 

"Welcome to the Peoples Republic of America, a sovereign nation of China." 

😢

China will be the world super power within 20 years.  They have 1.5 billion people, and they spend their money on infrastructure and technology and not wars in the Middle East. 

[riviera74]

The United States is more likely to lose its near-monopoly position on the world stage at this point.  China will benefit the most.  The USA (especially since we can get our own oil from the Permian Basin) can simply ditch the Middle East and leave them to Russia.  Of course, China has spent a lot of $$$$ on upgrading their military hardware too, not just technology and infrastructure.

Too bad our president seems to think that bad 1980s solutions will solve the problems of the 21st Century, even against our allies and trading partners.

[ocnblu]

What is Mexico doing at its southern border?  What is Central America doing to BETTER the lives of its citizens?  This is where the issues start.  The tariffs are a byproduct of decades of poor conditions in poorly run $h!hole countries.

Too many of you guys don't want to put the blame where it belongs.

[oldshurst442]

2 hours ago, ocnblu said:

What is Mexico doing at its southern border?  What is Central America doing to BETTER the lives of its citizens?  This is where the issues start.  The tariffs are a byproduct of decades of poor conditions in poorly run $h!hole countries.

All this does NOT concern YOU or the United States OF America...

You know what?

THIS concerns YOU and the United States OF America...

IRONY is that...those shythole countries YOU wanna talk about, well, a lot...a lot of similarities exist...

 

Yet another public shooting...this one is fresh.  It happened YESTERDAY...

From Fox news so YOU dont say to me its #fakenews...

https://www.foxnews.com/us/at-least-12-deaths-and-several-injuries-at-virginia-beach-municipal-complex-police-say-shooter-also-dead-reports

 

Always looking at other's crap, while ignoring your own... I guess THAT is how you will get great moving forward...

 

Edited June 1, 2019 by oldshurst442

[ocnblu]

Don't you get it, Canadian?  We don't need somebody else's crap.  We spend too much money on other people's crap.

[riviera74]

3 hours ago, ocnblu said:

What is Mexico doing at its southern border?  What is Central America doing to BETTER the lives of its citizens?  This is where the issues start.  The tariffs are a byproduct of decades of poor conditions in poorly run $h!hole countries.

Too many of you guys don't want to put the blame where it belongs.

You are right about conditions in Central America.  Tariffs will solve nothing because they are taxes on US importers, who will pass those taxes onto consumers.  Changing behavior requires something else that will directly affect Mexico, not torpedo the auto industry.

[surreal1272]

8 hours ago, ocnblu said:

What is Mexico doing at its southern border?  What is Central America doing to BETTER the lives of its citizens?  This is where the issues start.  The tariffs are a byproduct of decades of poor conditions in poorly run $h!hole countries.

Too many of you guys don't want to put the blame where it belongs.

I can put the blame where it belongs. Let’s start with all of our engagements and meddling in Central America since the 1930s that resulted in endless civil wars and despot leaders. Now, add in our failed “war on drugs” policies that started during the Nixon years and was amplified during the Reagan years, and you have the perfect recipe for the current disaster in that region. Maybe you should crack open a history book on it before spouting off pro-Trump propaganda. 

 

https://medium.com/s/story/timeline-us-intervention-central-america-a9bea9ebc148

4 hours ago, ocnblu said:

Don't you get it, Canadian?  We don't need somebody else's crap.  We spend too much money on other people's crap.

See above response. 

 

Whats hilariously sad is that I never see folks labeling the Irish the same way as brown folks even though they also fled a $h!hole country situation for decades and we have tens of thousands of them here illegally in one fashion or another. Where’s our east coast wall that needs to be paid for by Ireland (that last part is clearly meant to be a joke btw)?

https://www.google.com/amp/s/psmag.com/.amp/social-justice/how-the-immigration-crackdown-is-hitting-the-irish-community

Edited June 1, 2019 by surreal1272

[surreal1272]

A little more background of our role in creating $h!hole countries. 

 

https://www.google.com/amp/s/amp.usatoday.com/amp/2338489002

[surreal1272]

10 hours ago, ocnblu said:

What is Mexico doing at its southern border?  What is Central America doing to BETTER the lives of its citizens?  This is where the issues start.  The tariffs are a byproduct of decades of poor conditions in poorly run $h!hole countries.

Too many of you guys don't want to put the blame where it belongs.

Guess it’s a good thing you bought your Mexican made Jeep before those tariffs kick in. 

 

Irony is definitely not without a sense of humor here. 

[oldshurst442]

7 hours ago, ocnblu said:

Don't you get it, Canadian?  We don't need somebody else's crap.  We spend too much money on other people's crap.

I love the States, man!

I love your country almost as much as I love my own!

It pains me to see and hear all that is happening in your country.

Ill stop with the political stuff. Only because reality of what our countries have done to other countries is hard to accept by some of us...yes...including Canada....

 

[Drew Dowdell]

12 hours ago, ocnblu said:

What is Mexico doing at its southern border?  What is Central America doing to BETTER the lives of its citizens?  This is where the issues start.  The tariffs are a byproduct of decades of poor conditions in poorly run $h!hole countries.

Too many of you guys don't want to put the blame where it belongs.

That has nothing to do with raising taxes on citizens of the US!   It's like shooting yourself in the foot because your next door neighbor won't stop the guy two doors down from beating his wife. 

All this is going to do is hurt the domestic economy. 

8 hours ago, ocnblu said:

Don't you get it, Canadian?  We don't need somebody else's crap.  We spend too much money on other people's crap.

http://bfy.tw/NvKJ

[ocnblu]

3 hours ago, surreal1272 said:

Guess it’s a good thing you bought your Mexican made Jeep before those tariffs kick in. 

You've never heard me say I am against the car companies building vehicles in Mexico.  If Mexicans are employed, maybe they won't want to spill over.  But the Mexican government is weak, and conditions there are poor for too many Mexicans.  The Mexican government needs to step it up.

2 hours ago, Drew Dowdell said:

raising taxes on citizens of the US

That's the Dems' modus operandi