Taste of what’s to come, perhaps.
82% decline appears meaningful.
I bet meaningful to farmers with that product being impacted.
“In the week of April 11-17, net soybean sales were down 50% week over week and down 25% versus the four-week average, per data from the U.S. Department of Agriculture’s Foreign Agricultural Service released Thursday.
Net pork sales were down 72% week on week and 82% versus the four-week average, the USDA said.”
Boeing took the rare step of publicly flagging the potential aircraft sale during an analyst call last week, saying that there would be no shortage of buyers in a tight jet market.
DB2
The plan is to maximize bribes:
Air India may actually keep the Chinese 73s. They already have Maxes on order, so would probably take them, after Boeing has them repainted and retrimmed, instead of future deliveries.
Riyadh Air has a flock of A321s on order, so 73s would be a maintenance and training headache.
Steve
Any idea on the wait time for those A321s?
DB2
First deliveries are scheduled for second half of 26.
That airline isn’t flying yet. Service was supposed to start this year, but has been delayed, a couple times, because Boeing can’t get the 78s they ordered out the door on schedule.
Steve
Executive Branch? That’s bold corruption. I remember when responsible criminals at least tried to conceal their corruption.
TIG, declaring the emoluments clause “phony”.
Steve
Another revers… errm,huge „win“:
New YorkCNN — US Commerce Secretary Howard Lutnick appeared to confirm reporting on Monday that a deal has been reached with automakers to ease tariffs, in another potential policy reversal that could grant a major reprieve for a beleaguered industry.
The Wall Street Journal reported earlier in the day that President Donald Trump is set to announce a new tariff structure for cars that avoids stacking them on top of other tariffs already in place. Currently, there’s a 25% tariff on almost all imported cars as well as 25% tariffs on steel and aluminum, two metals heavily used in cars.
“This deal is a major victory for the President’s trade policy by rewarding companies who manufacture domestically, while providing runway to manufacturers who have expressed their commitment to invest in America and expand their domestic manufacturing,” Lutnick said in a statement to CNN. …
They didn’t say what the Tariff will be, is it going to 10% now?
Interesting. We’re heralding a deal we made with ourselves. Seems like we could have done that without “negotiating” at all, just announce what the new rate would be. Done.
Seriously. Any counter-part to the deal involved at all?
Trump called Bezos this morning to give his displeasure on Amazon displaying the cost of the Tariffs. So we are not going to know what the Tariff cost is and companies will be able to raise prices on all products. Inflation is going to go through the roof.
Ford Motor was crying a river, because they only want competitor’s Korean and Japanese cars tariffed, not the Mexican and Chinese parts that Ford imports. Ford “donated” $1M, plus free cars, to the inauguration, first. so first with “access”?
Steve…long Ford
But what is the Tariff? It changes daily so nobody knows.
Perhaps they’ll be “snapshot tariffs”? Based on the then current “snapshot” conditions?
In today’s electronic age, gas prices change daily, Tesla pricing changes based on current snapshot of conditions.
My healthcare by providers differs from yours, based on “current snapshot” conditions.
Why not price tariffs similarly?
ralph
Because when I’m buying gas I’m buying it right then. I’m not paying today and getting the gas in two weeks. For Temu and other ultra-low price retailers that’s significant.
If you’re selling a car and the price changes by $100, you can eat it, or if it goes the other way you can give it back (ha!). Not true with Haul & Temu and similar.
The current rumor, per bubblevision:
Additional 25% tariffs on auto parts that are expected by May 3 are still scheduled to take effect, but there will be an ability for some reimbursements, the official said.
The reimbursements on auto parts tariffs include up to an amount equal to 3.75% of the value of a U.S.-made car for one year, followed by 2.5% of the car’s value in a second year, and then would be phased out altogether, according to The Wall Street Journal, which first reported the expected changes Monday night.
As i read that, if you have a car with a value, which I take to be cost, not MSRP, of $30,000, you can have up to 3.75% of that value, or $1125, of ChiCom parts in it, with net zero tariff on the parts. That would suit Ford fine, as their engines and transmissions are built in the USMCA zone, so the most likely ChiCom parts are the electronic gimmicks.
Steve
But not by the taxes, the commodity fluctuates but the tax remains the same.
I read it differently - that you can get a rebate of the tariff for up to 3.75% of the car value. IOW, the $1,125 is the amount of the possible tariff rebate, not the value of parts that can be tariff free. Since the tariff is “only” about 25% for Canada and other countries other than China, that could be much larger foreign component value that gets relief from the tariff. Given that this is a media report on a policy that isn’t yet formalized, who knows what the right answer is.
You could be right. Rebate on the value of goods tariffed, or rebate of the tariff paid on the goods.?
The EO has now been posted.
Proclamation 10908 by reducing duties assessed on automobile parts accounting for 15 percent of the value of an automobile assembled in the United States for 1 year and equivalent to 10 percent of that value for an additional year as follows:
(a) For automobiles assembled in the United States, automobile manufacturers shall be eligible to receive an import adjustment offset amount applicable to section 232 duties on automobile parts based on the following schedule:
(i) The automobile manufacturer may apply for an import adjustment offset amount equal to 3.75 percent of the aggregate Manufacturer’s Suggested Retail Price (MSRP) value of all automobiles assembled in the United States from April 3, 2025, through April 30, 2026.
(ii) The automobile manufacturer may apply for an import adjustment offset amount equal to 2.5 percent of the aggregate MSRP value of all automobiles assembled in the United States from May 1, 2026, through April 30, 2027.
(b) The percentage rate provided in subsection (i) reflects the total duty that would be owed when a 25 percent duty is applied to parts accounting for 15 percent of an automobile’s MSRP value. The percentage rate provided in subsection (ii) reflects the total duty that would be owed when a 25 percent duty is applied to parts accounting for 10 percent of an automobile’s MSRP value.
So, it’s neither. The OEM’s receive a rebate based on the MSRP of every US final assembled car sold in a year. The rebate is intended to offset a 25% tariff on 15% of the content of the entire production slate for the year.
Currently, Mexican and Canadian parts are not subject to the 25% tariff, if they are USMCA compliant. That may, or may not be, a temporary situation.
Some manufacturers will still be a bit more behind the 8-ball, than others, due to heavy use of high value imported parts. A Subaru Outback, assembled in Indiana, contains 30% Japanese parts, including engine and transmission. Seems the rebate will still leave them paying the tariff on half of the Japanese content, plus the other 30% that comes from mysteryland.
The scheme is clearly intended to favor the big three. Their supply chains started in the US, and have gradually been going offshore, while import brands that have built assembly plants here, still have supply chains that extend back to their home countries.
Steve…should probably pick up some more Ford.