Well, he did it again and this one involves an investment in US energy (Like nobody has ever seen before.) I'm going to miss him in about 4 years. Then it will be back to the highly educated, well-spoken wimps without a degree of common sense.
Meanwhile ABC's This Week was dedicated to the Epstein Files.
Tariffs on Japanese cars, parts and subassemblies used to assemble Japanese cars in the USA just went down from 25% to 15%. Potentially a 10% increase in profit or reduced prices.
Stellantis GM & Ford are subject to new tariffs for completed automobiles and parts made in Mexico or Canada while the whole supply chain has been disrupted by the 40 or 50% tariffs on aluminum and steel.
Either they make fewer vehicles and surrender market share while adapting or they join Stellantis in bankruptcycor they raise prices and hope, once again, that patriots will buy American only and not just a monthly payment that they can afford.
The marketplace influences are many, but the playing field favors Toyota and Honda.
Japan’s U.S. trade deal leaves Detroit’s Big Three fuming
The U.S. has agreed to lower the tariff rate on Japan’s auto exports to 15%, and a group representing General Motors (GM), Ford , and Stellantis has sounded off. Matt Blunt, head of the American Automotive Policy Council (AAPC) representing these Detroit manufacturers, stated: “Any deal that charges a lower tariff for Japanese imports with virtually no U.S. content than the tariff imposed on North American built vehicles with high U.S. content is a bad deal for U.S. industry and U.S. auto workers,” Reuters reports. Trump has also floated increasing tariffs on Mexico and Canada to 30% and 35%, respectively, by August 1. The AAPC similarly criticized the U.S. for agreeing to a 10% tariff rate on Britain’s first 100,000 annual vehicle exports to America .
“Big Three” automakers are already under financial pressure from tariffs. GM shared this week that it suffered $ 1.1 billion in tariff-related losses during Q2, with Q3’s forecast appearing worse. Stellantis’ tariff losses so far are less, but still hefty at about $352 million. Like GM, Stellantis anticipates that tariffs will further erode profits during the second half of 2025. Ford has anticipated a $1.5 billion financial hit from tariffs this year.
Japan has pledged to invest in the US, sometime, somewhere in the future. They also agreed to open their auto markets to US manufacturers, meaning Ford & GM, but they cannot force the Japanese to buy American cars. Meanwhile the US can't get enough Toyotas and Hondas.
Of course you failed to mention what is likely to happen.
First, the big three US automakers are going to pull out of the Mexican factories they built and return to America where they won't be under heavy tariffs. Once again they'll have to pay a living wage to Americans.
As for Japan, they will finally have to open their markets to American cars and trucks. They may not have to open up to other countries, but they'll have to be fair to the country that helped rebuild their economy
...The 15 percent tariff on Japanese imports is "unfair for American automakers," who are facing a 25 percent tariff on auto parts and finished cars imported from Canada and Mexico, David Whiston, an analyst for market research firm Morningstar, told The Washington Post. Matt Blunt, president of the American Automotive Policy Council, has also called it a " bad deal ."
So far, the White House has shaken off those complaints. Commerce Secretary Howard Lutnick told CNBC on Thursday that tariff complaints from the American auto industry were "just so silly" and repeated the Trump administration's claim that "there's no tariff if you build it in America."
That is simply untrue, as long as the Trump administration is charging tariffs on the raw materials and component parts needed to build cars in America.
Instead of trying to obfuscate about the consequences of tariffs, Lutnick ought to consider the message being sent to Toyota executives. They are being given a choice. Continue building the Camry and the Highlander in America, where every component is subject to 25 percent tariffs and where steel prices have spiked as a result of the tariffs (which have pushed prices higher even for domestically produced metals not subject to the import taxes).
Or you can build those same cars in Japan, then import them to the United States and take advantage of a favorable relative tariff rate. What would you do? What would that mean for the hundreds of thousands of Toyota employees in the United States?...
First, the big three US automakers are going to pull out of the Mexican factories they built and return to America where they won't be under heavy tariffs.
Well, there's a foolish thought, let's abandon $billions in real estate and technology investment in a foreign country ( both of our largest natural trade partners ) because a politician says so.
The average investment in an auto factory can vary significantly based on several factors, but here are some key figures:
These figures highlight the substantial financial commitment required for establishing an auto manufacturing facility.
Maybe we should wait for someone who actually learned something at Wharton comes along to fix this.
Once again they'll have to pay a living wage to Americans.
News flash, unless you believe in a nanny state, it isn't the governments problem. Most UAW jobs are dead on with the cost of living; most white color jobs are much higher but it certainly isn't the industries social obligation unless your leaning towards socialism or communism.
As for Japan, they will finally have to open their markets to American cars and trucks.
I already pointed out that opening Japan to our vehicles probably won't amount to more than cursory interest. The Japanese are fiercely loyal to home grown brands. trump cannot force them to buy our vehicles.
They may not have to open up to other countries, but they'll have to be fair to the country that helped rebuild their economy.
As I told the children as they grew up, the world isn't fair and doesn't care about your feelings
Advantage: the American working class.
Let's not insult one another, let's just say you are hoping for an overly optimistic result.
To many on the left, that is offensive because itis Trump that may be giving the advantage.If it were a D doing it, that person would be hailed as a hero and given the Nobel.
When you start with this tired old "to many of the left" and your typical "leftist" labeling,
everything that follows is meaningless whataboutisms.
No substance, neither a discussion or an argument.
The automakers will do whatever benefits their bottom line: profits. As far as Donald Trump is concerned American companies that import cars into the US which they assembled elsewhere are subject to tariffs, the same as a foreign country.
Therefore the American companies will calculate which is cheaper - to build in Mexico or deal with the UAW. I think they'll reinvest in America.
I have been doing this a lot longer than you realize and have seen dozens of car lines and car companies disappear because of their own hubris or ineptitude.
American auto manufacturing is doomed, there are only two left and the government is creating artificial obstacles to the survival of GM.
The UAW has little to do with it.
It is all about business and people rarely like the end result.
So far 14 American brands have died.
36 foreign auto makers of some note have failed.
But none of them were put out of business by their own government's recklessness.
Who is paying? So far, the burden seems to be falling mainly on U.S. businesses, which are definitely seeing a sharp rise in costs…And we’re currently experiencing cost inflation at levels not seen since the summer of 2022.
So far, these costs haven’t been fully passed on to consumers, probably in part because businesses have been expecting tariffs to come down. But once businesses see how high tariffs on Japan and Europe are after they’ve made deals, their willingness to absorb the tariffs rather than passing them on to consumers will evaporate.
According to Krugman, this Japan “deal” has everyone spooked because it’s so stupid that it essentially “tilts the playing field between U.S. and Japanese producers of cars, and perhaps other products, in Japan’s favor.”
Falls short of 90 deals in 90 days. The flip flopping with China and Japan is a much bigger deal.
Every other day the percentages flip depending on Trump's mood causing a lack of confidence in America and the markets.
Trump cheerleaders grasp on any move they can spin as positive while never ever looking at the bigger picture or the worse harm done with tariffs across the board that hurt American companies.
The key in this (and most deals) is that both sides are content with the end result. It seems, at least publicly, that this is true. If so, then without looking at the details this would be a very good accomplishment for Trump.
( Since we cannot trust anything Trump says, we need to investigate other sources to find out the actual deal. )
If so, good for him and good for us. About time.
Unfortunately Trump's supporters think he is doing great even when he is fucking up so they will play this up endlessly as they continue to downplay his many, considerable failings.
Like a few other "trade deals" on paper Japan has agreed to allow Ford and GM Ev's to enter their market. The Japanese don't need them or want them any more than they want or need Stellantis or Chinese EVs at any price but BYD has actually sold more EVs in 2024 in Japan than Toyota because the public isn't ready and there is little infrastructure for charging stations yet.
In a sort of gross irony of sorts, Gm and Ford will have to ship their EVs by ship to Japan and suck up the expense which is why both Ford and GM see this as a Pyrrhic victory for Trump. No winners at all ( except the Japanese. )
While your link is ineffective and just to a page asking "you" to subscribe the FT,
FT can hardly be described as "left wing media" can it?
It's actually closer to the right by a smidgeon.
LEAST BIASED
These sources have minimal bias and use very few loaded words (wording that attempts to influence an audience by using appeal to emotion or stereotypes). The reporting is factual and usually sourced. These are the most credible media sources. See all Least Biased sources.
Overall, we rate the Financial Times Least Biased based on balanced reporting and High for factual reporting due to proper sourcing and a clean fact check.
Well, he did it again and this one involves an investment in US energy (Like nobody has ever seen before.) I'm going to miss him in about 4 years. Then it will be back to the highly educated, well-spoken wimps without a degree of common sense.
Meanwhile ABC's This Week was dedicated to the Epstein Files.
Did he get snookered the same way Japan snookered him ?
As the platters used to say: He's got the magic touch!
Can you explain exactly how the US got snookered by Japan?
Japan doesn’t seem to think so.
Tariffs on Japanese cars, parts and subassemblies used to assemble Japanese cars in the USA just went down from 25% to 15%. Potentially a 10% increase in profit or reduced prices.
Stellantis GM & Ford are subject to new tariffs for completed automobiles and parts made in Mexico or Canada while the whole supply chain has been disrupted by the 40 or 50% tariffs on aluminum and steel.
Either they make fewer vehicles and surrender market share while adapting or they join Stellantis in bankruptcycor they raise prices and hope, once again, that patriots will buy American only and not just a monthly payment that they can afford.
The marketplace influences are many, but the playing field favors Toyota and Honda.
Japan has pledged to invest in the US, sometime, somewhere in the future. They also agreed to open their auto markets to US manufacturers, meaning Ford & GM, but they cannot force the Japanese to buy American cars. Meanwhile the US can't get enough Toyotas and Hondas.
Advantage Japan.
Of course you failed to mention what is likely to happen.
First, the big three US automakers are going to pull out of the Mexican factories they built and return to America where they won't be under heavy tariffs. Once again they'll have to pay a living wage to Americans.
As for Japan, they will finally have to open their markets to American cars and trucks. They may not have to open up to other countries, but they'll have to be fair to the country that helped rebuild their economy
We will also have fair trade with them
Advantage: the American working class.
To many on the left, that is offensive because itis Trump that may be giving the advantage.
If it were a D doing it, that person would be hailed as a hero and given the Nobel.
Well, there's a foolish thought, let's abandon $billions in real estate and technology investment in a foreign country ( both of our largest natural trade partners ) because a politician says so.
Maybe we should wait for someone who actually learned something at Wharton comes along to fix this.
News flash, unless you believe in a nanny state, it isn't the governments problem. Most UAW jobs are dead on with the cost of living; most white color jobs are much higher but it certainly isn't the industries social obligation unless your leaning towards socialism or communism.
I already pointed out that opening Japan to our vehicles probably won't amount to more than cursory interest. The Japanese are fiercely loyal to home grown brands. trump cannot force them to buy our vehicles.
As I told the children as they grew up, the world isn't fair and doesn't care about your feelings
Let's not insult one another, let's just say you are hoping for an overly optimistic result.
When you start with this tired old "to many of the left" and your typical "leftist" labeling,
everything that follows is meaningless whataboutisms.
No substance, neither a discussion or an argument.
There's a word for that...
They will just have to understand as someone famous once said "elections have consequences."
The automakers will do whatever benefits their bottom line: profits. As far as Donald Trump is concerned American companies that import cars into the US which they assembled elsewhere are subject to tariffs, the same as a foreign country.
Therefore the American companies will calculate which is cheaper - to build in Mexico or deal with the UAW. I think they'll reinvest in America.
Why don't you like that?
I have been doing this a lot longer than you realize and have seen dozens of car lines and car companies disappear because of their own hubris or ineptitude.
American auto manufacturing is doomed, there are only two left and the government is creating artificial obstacles to the survival of GM.
The UAW has little to do with it.
It is all about business and people rarely like the end result.
So far 14 American brands have died.
36 foreign auto makers of some note have failed.
But none of them were put out of business by their own government's recklessness.
Another opinion piece.
From Krugman who is always wrong. What happened to the recession we were supposed to be in?
Doing what?
American auto manufacturing is doomed
We better tell them, so they can invest in something else.
The UAW has little to do with it.
Then you don't know the history of auto manufacturing.
But none of them were put out of business by their own government's recklessness.
Forcing them to make electric cars is the only thing that came close.
Then stop reading it. Many leftists are a threat to this country's safety.
"No substance, neither a discussion or an argument."
Mirror mirror
"There's a word for that..."
Yes....yes there is
Neither does most of the EU leaders...
European leaders react to US-EU trade deal | Reuters
Most feel satisfied or admit that the US got the better deal.
I think our NT tariff "experts" need to sit this one out.
Don't lose that sense of humor.
Saying nonsense like "Many Rightists are a threat to this country's safety" may or may not be more accurate but it's just another opinion.
Sorry you feel that way, I supply as many facts and links as you can digest, but I cannot force you to read them or understand them.
Have a good one Chief.
Ursula certainly laid it on a bit thick. /S
Again, what non Communist, non autocratic dictatorship is going to force their EU businesses to buy energy from the US?
It's simple lip service for the simpleton who thinks these trade "agreements" are binding.
Everyone is playing him until he is out of office.
It is common sense. Europe knows deep down not to depend on Russia energy.
You are conflating what I said about GM in the USA with energy in Europe.
And yet Slovak and Hungary will keep buying the cheapest natural gas because it is more convenient and profitable.
As far as my comments that the "deal" is a sham...
Message to EU: Trust, but verify.
If they actually sign anything, Trump will find some way to violate the agreement.
Do you think that same message should go to the EU from the US?
[deleted][✘]
When your best defense starts out with “whatabout [someone else]…” you need to reconsider your position.
Falls short of 90 deals in 90 days. The flip flopping with China and Japan is a much bigger deal.
Every other day the percentages flip depending on Trump's mood causing a lack of confidence in America and the markets.
Trump cheerleaders grasp on any move they can spin as positive while never ever looking at the bigger picture or the worse harm done with tariffs across the board that hurt American companies.
Meanwhile no word from Congress.
All of these WH trade deals are legally dubious unless codified by Congress.
The key in this (and most deals) is that both sides are content with the end result. It seems, at least publicly, that this is true. If so, then without looking at the details this would be a very good accomplishment for Trump.
( Since we cannot trust anything Trump says, we need to investigate other sources to find out the actual deal. )
If so, good for him and good for us. About time.
Unfortunately Trump's supporters think he is doing great even when he is fucking up so they will play this up endlessly as they continue to downplay his many, considerable failings.
Like a few other "trade deals" on paper Japan has agreed to allow Ford and GM Ev's to enter their market. The Japanese don't need them or want them any more than they want or need Stellantis or Chinese EVs at any price but BYD has actually sold more EVs in 2024 in Japan than Toyota because the public isn't ready and there is little infrastructure for charging stations yet.
In a sort of gross irony of sorts, Gm and Ford will have to ship their EVs by ship to Japan and suck up the expense which is why both Ford and GM see this as a Pyrrhic victory for Trump. No winners at all ( except the Japanese. )
Even left wing media thinks Trump won a big victory.
While your link is ineffective and just to a page asking "you" to subscribe the FT,
FT can hardly be described as "left wing media" can it?
It's actually closer to the right by a smidgeon.
But thanks for the biased pov.
The comments here prove that it is true.