It’s what he knows best and really his only real ‘skill’.
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The question is, does he make more off bribes, or the repeal of the income tax, that the tariff revenue is supposed to help cover?
Again, depends on the bribe landscape. There is no clothing industry in the US to protect. I think the last piece of clothing I had that was made in the US was a sport coat I bought around 78-79. Yet, the countries that produce the clothes I have are among those with the highest tariffs. I just looked at the sport coat I bought in 2006: made in Cambodia. Trump is imposing a 49% tariff on Cambodia.
There isn’t much of a US consumer electronics industry to protect either. There used to be a protectionist law for the TV industry. I remember Nixon imposing an import surcharge on color TVs, to protect the US manufacturers from Sony. When VW closed it’s auto plant in PA, the building was bought by Sony and they made TVs in there until analog, CRT, TVs went obsolete. By the time “hi-def” TVs were a thing, RCA, Zenith, Sylvania, had all either gone out of business, or the brands were owned by foreign companies, so there were no US interests to protect anymore.
Following Reagan’s “voluntary import restraints”, many automakers did start setting up factories in the US, in anticipation of domestic content laws, which several other countries, with industries to protect, use. His plans for auto tariffs are more developed and nuanced that his other tariffs, and there are still two US companies, with lots of money, that want protection. The auto tariffs may stick.
Steve
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Just in time to watch purchasing of private, analog, smash-into-each-other-cuz-duhOh!-humans, disappear as a significant category, like the buggywhips they displaced?
Chief Economic Minister Airlangga Hartarto said in a statement that Indonesia would pursue diplomacy and negotiations to find mutually beneficial solutions rather than retaliate.
Vietnam has asked for a last-minute delay to a massive 46% tariff imposed by the US on all its imports.
Former President To Lam said he had appointed Deputy Prime Minister Ho Duc Phoc to serve as the primary contact with the US side on the issue, "with the aim of reaching an agreement as soon as possible.
Israeli Prime Minister Benjamin Netanyahu said he hopes US President Donald Trump will ease tariffs imposed on Israel when the pair meet in Washington next week.
“I hope that I will be able to help on this issue. That is the intention,” Netanyahu said of the tariffs. “I am the first international leader, the first foreign leader, who will meet with President Trump on the issue, which is so important to the Israeli economy.”
Taiwan’s President Lai Ching-te has offered zero tariffs as the basis for talks with the US, rather than retaliating against President Donald Trump’s new 32% levies on the island territory
European Union chief Ursula Von der Leyen said the bloc is prepared to “defend its interests with proportionate countermeasures” against Trump’s tariffs and will work with partners towards this end
National Economic Council Director Kevin Hassett told ABC’s This Week that Trump’s tariffs had so far driven “more than 50” countries to contact the White House to begin trade talks.
Let the negotiations begin.
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I’m not sure what you are going for there?
I have not seen a detailed discussion of the car tariffs from either POTUS or Commerce, but I found this layout from a newly elected Senator from Ohio. Moreno used to own some car dealerships, so this is a topic close to his expertise. If his layout is accurate, you can see what I mean about the car tariffs being more thought through, and nuanced, than the sledgehammer TIG took to everything else.
How would this work out in practice?
Example the Ford Escape is final assembled in Louisville, 36% US/Canadian. 27% Mexican. Transmission built in US, no tarrif. Base engine built in Mexico, in USMCA zone, so no tariff. The other 37% of the content is sourced outside the USMCA zone, but, other than the electronics, not “critical components”, so not tariffed at 25%. I suspect that other 37% is sourced from the other markets where the Escape is built: China (ouch!) and Spain (20% EU tariff)
Ford Bronco Sport: final assembled at Hermosillo, Mex. 23% US/Canadian parts, no tariff. 64% Mexican content, tariffed at 25% because the car is not final assembled in the US.
The Louisville plant has plenty of unused capacity. The Bronco Sport is on the same platform as the Escape, so adding the Bronco Sport to Louisville production should be relatively straightforward. Build the Bronco Sport in Louisville, then that 64% Mexican content, becomes tariff free.
Chevrolet Equinox is entirely built in Mexico: 15% US/Canadian parts, 49% Mexican, including Mexican engine and transmission. Right now, the 15% US parts would come in to the US without tariff, but the 49% is tariffed. If GM leased, or bought, the Lordstown assembly plant back from Foxconn, and moved Equinox final assembly in, then the 49% Mexican content would not be tariffed.
Steve
Seems like last week would have been a great time to start.
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That “51st state” nonsense is probably not helpful in negotiating with Canada.
Steve
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March 11, 2025
Ontario Premier Doug Ford clapped back at President Donald Trump on Tuesday after he responded to the province’s new surcharge on electricity for American consumers with higher steel and aluminum tariffs.
4-2-2025
https://www.realclearpolitics.com/video/2025/04/02/ontario_leader_doug_ford_were_ready_to_take_down_all_tariffs_if_us_does_the_same.html
During an interview with CNBC’s Ross Sorkin on Wednesday morning, Ontario Premier Doug Ford appeared ready to agree to President Trump’s demand and remove all tariffs on American goods if Trump does the same. It’s not clear if he speaks for the rest of Canada or has any ability to make this happen at a federal level.
Ontario’s premier Doug Ford changed his tune. Not that matters much as he is head of only one province. Is he auditioning for Ontario to become the 51st State?
Okay, so after all the negotiation is concluded, we’ll be back to where we were before all this started. Back to the status quo only with our best ally all cheezed off and distrustful. Negotiation skills like this is how Trump Airlines became a leading carrier.
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Not necessarily. The president hopes to wrangle more favorable trade concessions from trade partners. It remains to be seen if that will occur. But trade partners are eager for talks to prevent the increased tariffs.
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Ay, but there’s the rub. GM doesn’t know - and can’t know - whether to take that step or not. They don’t know what the Administration’s economic goals are with the tariffs.
If the goal is simply to force other nations to adjust their trade barriers, and that the tariffs will be restored to prior levels if other nations provide more favorable access to us, then it would be foolish for them to make major investments in relocating their facilities. If the Administration instead intends the tariffs to create a permanent “wall” around the U.S. market high and broad enough so that trade deficits (and investment surpluses) are eliminated, then they should do that. Unless they think that the economic consequences of the tariffs will drive Congress (either before or after the midterms) to step in and change the tariff regime.
No one wants to be the one to acquire/build/retool a factory and then have the tariffs that justified that investment disappear within a month or a year afterwards. But no one wants to be the one to pay many thousands of dollars per vehicle in import duties if the tariffs last. And generally speaking, if we’re about to head into a global recession, carmakers probably want to hold onto their cash rather than expanding. A dilemma, to be sure - and one that’s likely to paralyze, not spur, investment in domestic manufacturing facilities.
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[quote=“tjscott0, post:30, topic:115208”]
Not necessarily. The president hopes to wrangle more favorable trade concessions from trade partners. [/quote]
I don’t think we know that. The president said the issue was fentanyl. Or at least one of the issues. That’s not a trade issue. There is some amount of fentanyl coming from Canada that is unacceptable to the administration, but we don’t know how much would cause the tariffs to be reduced, or re-triggered.
Peter Navarro explained in great detail in CNBC that they are concerned about non-monetary barriers, specifically the VAT, among others. Canada is unlikely to remove their VAT, so I don’t see how this issue can be resolved. Navarro also said there is no negotiation.
I don’t see how an agreement can be reached if one side is unwilling to negotiate.
Figuring that out, is why the “JCs” make the big bux, right? In another thread, I noted that the major Japanese automakers started establishing a manufacturing footprint in the US, in the 80s, just on the fear that the US may impose domestic content laws. VW chose to close it’s plant in PA, in the mid 80s, and depend on it’s Mexican and Brazilian supply chains. Now, VW is looking at 3/4s of it’s sales volume coming from models that are on the wrong side of the tariff wall.
Steve
The main source of fentanyl comes from Mexico, then China. Only a nominal amount comes in from Canada. So that is not an issue with other nations.
Navarro is talking tough. And we don’t know what other nations will do.
Our nation made a big mistake in granting China favored nation status. They continue to steal intellectual property and manipulate currency for their benefit & grew their economy to #2. Time to evict China from the WTO.
I believe there is bipartisan support for that. You notice the previous president did not end the China tariffs enacted by the current president. In fact he increased tariffs on some goods.
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Remember the quote attributed to Lenin “when it comes time to hang all the capitalists, they will sell us the rope”? All the USian “JCs” could see was all the loot they would make by having access to that many potential customers. So the “JCs” signed anything, including the requirements to have a Chinese partner, and share their technology. Then they cry a river when the Chinese use the technology the “JCs” agreed to share. Then the Chinese developed the technology beyond what the “JCs” shared, while the “JCs” were out on the golf course.
So now the “JCs” cry for the government to protect them from what they created.
All that being said, when TIG said, around August 2019, that USian companies need to get their supply chains out of China, I agreed. I also realized it was probably Navarro putting the words in his mouth. The bottom line is every dollar we sent to China, comes back to bite us in the kazoo.
Steve
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We have a pretty good idea. The justification for the tariffs is designed such that no nation can come into compliance. For example, Australia (which we have a trade surplus with), Canada, and the EU all have VATs. And having a VAT is justification for the tariffs.
So what do you do? Do you remake your tax policy in the vague hope that will get you off the naughty list? Probably not. The rational thing to do is take things at face value: The US is an unreliable and untrustworthy trade partner. Any deal has to extract major concessions from the US or it won’t happen.
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I doubt the 42nd president was suckered on China admittance to WTO. He and Congress reaped the campaign contributions from US corporations to shift production to cheaper environs and rif the expensive US worker class.
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Then it won’t happen and we see which economy can endure the pain.
But I believe many nations will cave as the EU did of defense funding.
Yup, they were all anticipating lots of loot in their pockets. After all, they had the word of a Nobel Laureate that everything should be done where it’s cheapest.
It wasn’t the decision of the US. WTO membership is decided by the current WTO members, all of who were in the thrall of that same Nobel Laureate, and the “free trade” religion.
Steve
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Trump is a narcissist. The tariffs are presently his best tool for wielding power and commanding the attention of the world. When that wears thin, he will move on to something bigger and better. Prepare for the worst.
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