Seems tariff policy does not have anything to do with a particular product being “dumped”, as was historically the case. Tariffs are a cudgel to be used on any country that does not toe the line…like the tariff threat against Colombia, for not accepting US deportees.
As some here may know, I drive a VW. Most of VW’s production base is in Mexico. The company has one plant in the US, which builds their largest SUV.
A piece on the wire today, says VW’s contingency planning is to build Audis and Porsches in the US plant. That figures, as Audis and Porsches are more profitable than plebeian VWs. So, the Jetta, Taos, and Tiguan, would be priced out of the US market, due to their Mexican production. Would VW keep the VW brand alive in the US, with only the Atlas SUV? Or would they drop VW entirely, and only sell the more expensive, more profitable, Audi and Porsche models?
They have to get the ID.Buzz for sale in the US. Otherwise, they lose a LOT more. At $60+k, WAY overpriced. Although there ARE idiots who will pay (they bought more expensive vehicles with less real-world practicality).
It is for sale in the US. They sold 1162 in Q4. I saw one in the metal last spring. Typical modern VW gimmick wagon. Meanwhile, the iD4 only sold 646 in Q4 down 93.9%. iD4 sales for the year of 17021, down 55%. the iD4 is built in Chattanooga, while the Buzz is built in Hanover, Germany, so would be hammered by whatever TNG does to the current 2.5% tariff on cars imported from the EU.
https://media.vw.com/en-us/releases/1840
Steve
At another point, Lutnick said the prices of some specific goods could rise due to tariffs but that “it is just … nonsense that tariffs cause inflation.” … Senator Brian Schatz of Hawaii at one point jokingly called the hearing “a bit of a love-fest.”
What could possibly go wrong?
Have the tariffs on China been squared with the billionaire co-president?
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