The word of the hour is “thrilled” by 25 percent tariffs on autos starting April 2.
Prepared to be Thrilled
The Wall Street Journal reports Trump Plans 25% Tariff on Imported Vehicles
“What we’re going to be doing is a 25% tariff on all cars not made in the U.S.,” Trump said Wednesday in the Oval Office, appearing to dispel any chance of an exemption for countries such as Canada and Mexico, which have a free trade agreement with the U.S. It wasn’t clear when those tariffs would be effective, or whether they would extend to auto parts, which Trump’s trade team had considered exempting from tariffs in recent days.
The U.S. will start collecting the auto tariffs on April 3, Trump said, the day after he is slated to announce a broader slate of trade actions. Trump’s so-called reciprocal tariffs, slated for that day, were originally planned to equalize U.S. tariffs with those charged by foreign nations, but Trump said Wednesday that the tariffs he plans to implement would likely be lower than that.
Canadian Prime Minister Mark Carney called the tariffs a direct attack on Canadian workers. He said Canadian officials would decide what actions to take, including possible retaliatory tariffs, after seeing the language of Trump’s executive order.
“It’s clear that this is a violation and he has betrayed our trade agreement,” said Carney, who has just begun an election campaign that will culminate in an April 28 vote.
Nearly half of new passenger vehicles sold in the U.S. in 2024 were assembled outside the U.S., according to data from S&P Global Mobility. Mexico is the biggest auto exporter to the U.S., sending pickups from General Motors, Ram and Toyota as well as affordable sedans from Nissan and luxury models from BMW and Volkswagen’s Audi.
In many cases, Trump said, the tariffs will be “less than the tariff [trading partners] have been charging us for decades.”
Trump also said the reciprocal tariffs will target “all countries,” and not just the 15% of nations that Treasury Secretary Scott Bessent had said could be given priority in the April 2 action.
Trump batted away concerns over higher prices for cars or effects on U.S. automakers, saying that car companies with factories in the U.S. would be “thrilled” with the tariffs.
Trump’s previously implemented, but largely delayed, tariffs of 25% on Canada and Mexico would add about $6,000 in costs to vehicles assembled in those countries, assuming parts were also included in the levies, Cox Automotive said.
Analysts have said that auto tariffs, if broadly applied and lasting more than a few weeks, would lead to a slowdown across the industry.
“Bottom line: lower production, tighter supply and higher prices are around the corner,” Cox Automotive chief economist Jonathan Smoke said.
When consumers might start to feel higher prices remains uncertain, because many dealers have built up a stockpile of cars on their lots to prepare for the tariffs.
I am Thrilled Already
However, I don’t know if I will be thrilled next week, tomorrow, or even an hour from now, due to Trump’s propensity to repeatedly change his mind on tariffs.
Are Automakers Thrilled?
I asked Grok “What do GM and Ford think of Trump’s 25 percent tariff on cars?”
General Motors (GM) and Ford have expressed significant concerns about President Donald Trump’s 25% tariff on imported cars, particularly those from Mexico and Canada, due to the potential for increased costs, disrupted supply chains, and negative impacts on their profitability and the broader U.S. automotive industry.
GM has been vocal about the potential fallout. CEO Mary Barra has acknowledged the challenges posed by the tariffs, emphasizing that they could lead to higher vehicle prices and reduced competitiveness. However, she has also outlined a proactive stance, stating that GM has contingency plans to mitigate up to 30% to 50% of the additional costs in the short term without significant capital investment. This could involve shifting some production to U.S. plants, where GM has capacity, or adjusting global sales strategies. Barra has met with Trump to discuss investment plans, indicating a willingness to adapt, though the company has not accounted for tariffs in its 2025 financial guidance, reflecting ongoing uncertainty. GM’s heavy reliance on Mexican production—over 842,000 vehicles in 2024, including key models like the Chevrolet Silverado and Equinox—makes it particularly vulnerable, and the company fears long-term damage to its bottom line and American jobs if tariffs persist.
Ford has been more overtly critical. CEO Jim Farley has described the tariffs as injecting “chaos” into the industry, warning that a sustained 25% tariff on imports from Mexico and Canada would “blow a hole” in the U.S. auto sector, an impact he considers unprecedented. Farley has highlighted the added costs and disruption to Ford’s operations, which include producing popular models like the Bronco Sport and Mustang Mach-E in Mexico. He has expressed frustration over the unpredictability, noting that even short-term tariffs add “a lot of cost” and complicate planning. While Ford has engaged with the Trump administration—Farley and Chairman Bill Ford spoke with Trump, securing a one-month exemption for USMCA-compliant vehicles until April 2, 2025—the company remains wary. Farley has also suggested that if tariffs are inevitable, they should be applied comprehensively across all countries to level the playing field, pointing to competitors like Toyota and Hyundai that import from Japan and South Korea with lower duties.
Both companies have lobbied for exemptions, particularly for vehicles meeting the United States-Mexico-Canada Agreement (USMCA) rules, arguing that tariffs undermine their investments in North American manufacturing. They secured a temporary reprieve in early March 2025, but the looming April 2 deadline keeps the pressure on. While GM seems more focused on mitigation and adaptation, Ford leans toward highlighting the broader industry chaos and economic risks, reflecting a mix of pragmatic and alarmed perspectives on Trump’s tariff policy.
Who Do You Believe?
The Ford CEO, GM CEO, and Cox Automotive chief economist Jonathan Smoke say they are not thrilled by the tariffs.
But Trump says they are thrilled.
Since Trump has never been known to lie, you have to go with Trump on this one.
Consumers Will Be Thrilled Too
Trump largely won the election on the economy, especially inflation.
One of the reasons Trump one is his promise of lower higher inflation. So consumers will likely be as thrilled as Ford, GM, Cox, Trump, and me when prices rise by $6,000.
Wait. I have even better news, especially regarding trucks.
On February 26, I noted Trump’s Tariffs Will Increase the Cost of a Pickup Truck by $8,000.
Anderson Economic Group examines the potential tariff damage.
The study estimates that a 25% tariff on the U.S. neighbors would increase the cost of a full-size SUV assembled in North America by $9,000 and a pickup truck by $8,000. The cost of an electric-vehicle cross-over would increase by $12,200.
I’m not sure if that properly factors in steel and aluminum tariffs. So I am geared up for even bigger thrills.
Related Posts
March 24, 2025: Trump Announces 25 Percent Tariffs on Countries that Buy Venezuela Oil
I eagerly await Trump’s major announcement for Venezuela to be the 53rd state.
Trump Postpones “Liberation Day” to Focus on the “Dirty 15”
On March 24, 2025 I noted Trump Postpones “Liberation Day” to Focus on the “Dirty 15”
Trump proclaimed April 2 as “Liberation Day” on which he would announce specific tariffs on each of 200 countries.
I had my flags out and firecrackers ready.
And as my lead chart clearly shows, we desperately need liberation from Canada.
I put my flags and firecrackers away, but after today’s announcement I am buying more immediately.
Beat the rush before prices rise.
Addendum – Tired of Rebutting Stupidity
Reader: “Tariffs are reciprocal. All Canada has to do is to lower the tariffs they charge the US to what they want the US to charge them.”
USMCA IS reciprocal right now.
In extremely minor instances where it isn’t, TRUMP negotiated the deal.
Please read over and over Cheese Was a “Key Achievement” of Trump’s USMCA Trade Agreement
The fact of the matter is Trump has no legitimate right to unilaterally break a deal ratified by the Senate 89-10.
Spare me the sap about absurd lies on national security.
The additional pertinent fact is Trump just proclaimed to the world that he may not honor any deal, even those he signs. At some point there is a cost to this lack of trust.
I am about ready to require logging in to comment or vote on comments.
There is too much nonsense and I am deleting a lot of garbage.
========================
Unrelated thought:
“Tariffs are reciprocal. All Canada has to do is to lower the tariffs they charge the US to what they want the US to charge them.”
I am really tired of having to rebut the above stupidity.
But USMCA IS reciprocal right now.
In extremely minor instances where it isn’t, TRUMP negotiated the deal.
Please read, this and report what a fool you are to believe Trump.
Cheese Was a “Key Achievement” of Trump’s USMCA Trade Agreement
i hope you are not referring to the dairy tariffs that trump references of 250% that have never been charged because we allow an amount of trade before they go into effect
read my post – I agree with you
The 250% tariff on cheese enforces a tiny quota of cheese that USA is allowed to sell to Canadians. Reciprocity is when USA puts a 25% tariff on automobiles to enforce a tiny quota of automobiles Canada is allowed to sell to Americans. Preferably none.
Lol! The 250% tariff that Canada puts on US cheese imports that exceed 3.6% of Canadian market share is in response to the 281% tariff that the US puts on cheese imports from Canada that exceed 0.6% of the US market. This was negotiated by Trump in the USMCA, and he was very proud of how he got Canada to agree to this because it favors the US.
Notice he never mentions that we put higher tariffs on Canadian dairy than they put on us; or that he negotiated this.
Logging in makes sense after some of the asinine comments I have read. But I do have one question: I thought the use of the IEEPA was needed for the executive branch to invoke tariffs. Fentanyl was used as the emergency. Otherwise, legislative branch approval is needed to impose tariffs. With tariffs on auto imports from Japan, Germany, S.Korea, etc., where is the emergency? Or have I misinterpreted the balance of powers?
The Nonsense posts are interesting, Mish. Do not censor your readers or those that comment. Keep it open, even for the hard-core Reds and Blues. I enjoy reading the nonsense from both sides.
Keep the non-excellent comments, which are the majority.
Am I the only person to contemplate that this announcement was released to deflect the news cycle from the incompetence and lies of Hegseth?
One thing I will say – in spite of their across the board “anti environmental” actions and threats, the republicans could end up being a big advantage to the planet if they can stifle growth and human activity enough to slow down our destructive activities.
And effectively, everything that trump is doing seems to be geared to slowing growth and killing/slowing people and/or, making A LOT of money in the stock futures markets.
Judging by the stock market’s reaction to Trump’s tariff announcements yesterday, the car companies are not thrilled with Trump’s auto tariffs that go into effect next week.
Assume that the majority of manufacturing moved back tot he US to avoid tariffs and said tariff revenue very low, how would you then end the income tax?
I think we should now put a $1 tariff on ANY world Leader, other than USA LEADERS, who speak in defiance of the Mighty USA.
$1 per word.
FROM GROK:
“Most Tesla vehicles sold in the U.S. are made domestically at these facilities, though some early Model 3 units were supplemented by imports from Gigafactory Shanghai in China during production ramp-ups. However, as of now, Tesla prioritizes U.S.-based production for the American market to reduce costs and meet demand efficiently.”
We need a bit more clarification, Mish. Is TRUMP TALKING TARIFFS on FINISHED AUTO’s: ready for delivery to dealerships?
Ford has 2,800 dealership. Tesla: 150.
Tesla does not have dealerships. They have showrooms but those are not dealerships.
I don’t believe that the American people have come even closer to fully comprehending to what extent their consumer reality will change due to Trump 2.0. The U.S. consumer drives the U.S. economy, and consumers with discretionary income drive consumer demand. Consumers with discretionary income consume most luxury products in the U.S. economy, and most of these consumers are not multi-millionaires or billionaires; they are the mass affluent. The mass affluent are about to have their costs increase significantly. This will hit consumer sentiment and economic growth.
The Europeans like to complain, but will do the same , Decades ago they transferred
their industries to China and Turkey. EU might impose tariffs on these two dictatorships, under the banner of freedom, to revive their industries.
The RE market is comatose. We don’t need logging. There are 283 million cars in the US. We are not running out of cars. By the time those cars expire we will have modern factories which produce better and more appealing cars to the alphas and the zoomers
Hahahaha! This is great! Tariffs up the wazoo! And more to come. Let the Golden Age begin!
I am looking forward to the benefits that will appear over the next year: Manufacturing plants will be sprouting up all over the place, bringing hundreds of thousands of high paying manufacturing jobs. And no income taxes on those jobs as tariffs will replace income taxes. Deficits and debts will disappear. Prices for everything will come down and inflation measures will no longer be needed.
Now, we just need our trading partners to knuckle under and give us everything we want. I am sure they will because:
U.S. President Donald Trump threatened to impose “far larger” tariffs on the European Union (EU) and Canada if they work together to combat trade tariffs.
“If the European Union works with Canada in order to do economic harm to the USA, large scale Tariffs, far larger than currently planned, will be placed on them both in order to protect the best friend that each of those two countries has ever had!,” Trump said in a Truth Social update on Thursday.
Yep. We are everyone’s best friend. And Trump is proving it.
What did Doug Ford of Ontario say? “Our best friend just knifed us in the back.”
Donald Trump is President again, and the U.S. will again be respected worldwide. I have heard this hundreds of times from MAGA family and friends. They seem to have a much different dictionary than I do, because in my dictionary, respect means “a feeling of deep admiration for someone or something elicited by their abilities, qualities, or achievements.” I think that MAGA conflates fear with respect. I posit that maybe this happens because many of my MAGA friends and family are of the “God Fearing type.” I was taught to love God, not fear God, that was the Jesus way. But I find many American Christians come from the God Fearing camp, and maybe that is why many Trump supporters conflate respect and fear.
Lack of education will do that.
If u sell your S-400 we will sell u F-16. Ice arrested a Turkish national on student visa. Erdogan arrested Istanbul mayor, his main political opponents. Protests erupted all over the country. Erdogan arrested and will sentence thousands to jail as terrorists and saboteurs. Europe might form a new NATO: ex the US and Turkey, in order to re build their industries.
I don’t about the effect the car tariffs might have but I have noticed a remarkable surge in medium-sized foreign manufacturing companies opening up manufacturing plants in the US since Trump’s inauguration. Most are European and almost all are building their facilities in the Midwest and the South. Since mid-sized companies can move faster than the large ones, I would expect a similar surge of direct investment from large foreign companies coming soon. This is direct investment and not stock market purchases which is something completely different.
Apparently these companies believe the tariffs are here to stay or alternatively they could see the costs to manufacture in the US are lower than those in their home country especially when it comes to the cost of energy. Maybe it’s both factors. Coming so soon after the inauguration I suspect that the cost aspect may be very important and that they already had plans to to manufacture in the US but Trump’s election moved their plans forward.
Goods imported from low cost or subsidized markets are imports of deflation and exports of dollars. Exported dollars are re-invested in U.S. Treasuries and support our currency as the “Reserve Currency” of the world.
Do not be surprised if the dollar falters and nations refuse to trade in dollars as a result of this trade war. Do not be surprised if they sell our debt. Do not be surprised if they refuse to buy our farm products!
Brazil, Argentina and Russia will be happy to become the “Breadbaskets” of the world!
I do not want to return to the 1850’s. I do not want low paying factory jobs. I do not want to try to recruit workers to do menial jobs in this tight, highly skilled job market!
Our nation should be focused on providing high margin products and services based on a highly skilled and well compensated workforce. Success begets success and returning to low skill, low pay manufacturing jobs is not constructive.
I have been buying gold mining stocks and the GDX.
This trade war is destabilizing!
If they build factories in the US they will earn strong dollars. Investor trust a gov which cut debt. Since import is down the only way to sell in the US is to make it here.
That’s what China did to us. Countries which have assets in the US ==> will be less hostile to us.
So when you make imports more expensive with tariffs and get rid of many exports as you are perceived as an unreliable ally (F-35-s, Starlink, various milirtary equipment), does that lower the trade deficit? Am I the only one asking this question???
Maybe I’m just not enough MAGA for all that to make any sense…
If you do the research you will see that no country has stopped buying US military equipment because of Trump’s actions. Purchases have actually increased in some areas since the is a war in Europe and many US systems have no real equivalent. They are not happy but look at what they do and not at what they say. Germany confirmed they will buy the F-35 with first deliveries in 2026 for example. France is pushing the Rafale as a replacement for the F-35 but in performance terms the Rafale is too far behind. The French will sell some more of them simply because Europe needs more fighter planes but it won’t be a replacement.
Even Starlink hasn’t seen any contracts stopped. The Ontario one hasn’t officially been canceled and of course individuals in Ontario can buy Starlink individually. The state of the $40 million cancellation fee on the $100 million contract makes the cancellation very expensive but the PM of Ontario said he will cancel it as a matter of principle but as of now he hasn’t done it yet. As for Starlink in Ukraine, the Ukrainian military desperately wants Starlink to stay because there really isn’t any creadible alternative. When you let your military manufacturing network degrade because of decades of neglect and in some cases political sabotage (Germany) you lose the ability to come back.
Why would anyone buy the F35 when fighter planes are 20th century technology on a 21st century battlefield dominated by drones and soon, fighter drones.
We can see from the Ukraine war that you don’t need advanced fighter planes to keep the Russian air force at bay because Ukraine has done with without fighter planes. If you don’t need them against Russia, who do you need them for?
Yes, fighter planes are on the way out.
It’s too costly to train human pilots to fly them. And human error is way too costly with these machines.
Fighter jets have a place in war and they will be AI driven, rather than human piloted.
Here is a year old story:
I am sure you know better than the US military, the Chinese military, the Russian military and several European militaries who are all still buying airplanes. I am sure none of them has studied drones and their effect on war in Ukraine and unlike you, are blind to the fact that drones make airplanes unnecessary.
Trump (as liar in chief) has broken the USMCA trade agreement that he negotiated and signed. His activities undermine our credibility as a nation and endanger global economic security.
Regarding tariffs…
How cool it would be to have the inside information on potus next utterance on tariffs and positioning yourself accordingly?!!!!!
Other commentors have written here, I needed to remind everyone how beyond cool it must be to profit bigly beyond bigly on the orange messiah next sputtering….
Millions upon millions made short, long, like a wet dream only better because you’d see it in your brokerage account.
Martha Stewart maybe so rich she can get past the time she served for typical behavior from any rational being with inside information…
I’d be out for revenge…..
Only because I’m not nearly as smart or talented as Martha is.
Why haven’t we been discussing Japanese tariffs?
I absolutely love the Japanese because having interaction with the tourist here in Hawaii.
Besides the odd one drinking too much alcohol they are as compliant and wanting to please as a foreign person could be.
They are sooooooo anti immigrants, good male god fearing American anglos married into the culture keep their heads down and submit to constant pampering from their Japanese wives, or else….
The Japanese have massive tariffs American made products and yet…
All we here in Hawaii ne hear is
CRICKETS re: Japanese tariffs!!!
Point is, the Japanese have it “going on ” and don’t eff with it because Americans would be ashamed to call themselves humans compared to the stereo typical Japanese citizens.
Keep those immigrants out!!!!!
Easy PEAZY to them.
Our dilemma is that we are all barbaric immigrants in the Japanese judgement book!!!
Holy kamakazi!!!
Everyone will be cheating on the tariffs. Who is going to audit the process, especially when Musk is laying off 50% of the government workers and bureaucrats?
Also, if new cars jump in price, used cars will go up also.
Looks like inflation will be soaring this year! Super bumps for everyone with COL’s.
Just heard you on Coast to Coast AM. Good job Mister Mish.
Lets imagine situation that indeed we have all those beautiful tariffs everybody is so thrilled about. At that moment USAis basically becoming 3rd world country.
Companies might indeed move introduction to USA but given any production due to cost is US exclusive”, you will see them only producing few models of cars which can be still profitable for them here.
So end result is that we will have fewer and fewer choices, soon Americans (provided they can afford it) will travel to other parts of world and be at awe with marvels they see there.
Same will happen with every industry, you put protective tariffs and then any innovation will die down.
I guess Trump didn’t tell supporters, that MAGA means literally going back into 50s, old rusty cars, cord phones and blues jeans… Donnie wet dream, chicks were skinny then:)
Before the Canada-US Auto Pact was signed in 1965, this was the situation in Canada. The major US auto companies operated assembly plants in few Canadian cities (Windsor, Oshawa, Oakville and St. Therese) where they produced their less expensive models for the Canadian market. These cars were priced at a level where consumers thinking of importing them from the US were dissuaded from doing so because of import tariffs. Richer Canadians who might want to drive a Cadillac instead of a Chevy would pay the US price + the full import tariff + Canadian taxes levied on all car purchases.
Large sections of US central cities have already descended to third world status and they have the crime stats to prove it.
Nobody likes tariffs but you have to protect your industries and stuff. Do or do not. Those that do not fail. If you want to fail then yes, be pro tariff all goods from the US and anti-US tariffs then It should not take that long. A decade or so then your wish will be granted. Enjoy your Chinese cars and driving by more homeless drug addicts and activists protest burning your town down to the ground. You win.
EU car companies get reimbursed 25% VAT for exports. I doubt they make a profit on domestic sales. The tariff could bankrupt them. I am giddy at the thought.
Sure thing comrade
The problem of US before “TARIFF” is uncompetitiveness.
The problem of US after “TARIFF” is worse than before.
Not solving the structural problems.
China and Mexico are eating our crumbs and sucking our blood for decades. Mary barra hates tariffs, but the UAW loves them. Tariffs is why the UAW members and young people voted for Trump. They will benefit from high paying jobs and falling RE prices. The banks will finance this expansion. Carney will beat Pierre and Xi poops in the pants. After closing Nov 5/6 2024 gap DX might rise. Trump gave a boost to all the milling, the drilling and the carbide inserts.
Dream on. No corporation on this planet wants to pay wages that make your life worth living. Why don’t you get that? This an economic blog. You are clueless about how business works. They are not here to make your life good. They are not your friends.They are here for profits..not your wages and not your benefits.
If Marry barra cuts Real wages, after earning $30 millions, UAW will strike. Labor strifes might be back, but the bridge to the world was blown up: no way to return to globalization. No way under Trump.
haha, Trump will change his mind on a whim. At some point he’ll feel the pain of inflation, blame someone else for the tariffs that he actually never wanted, and be done with them. Until another week later, when he announces 25% tariffs on whatever was in the first TikTok he watched that morning.
Sure thing buddy
I really don’t think Trump is thinking this through?
There is potentially a simple answer to this. All the US automakers would have to do is go to Trump and say the agreement we currently have works really well, we do it for a reason, it helps us to be competitive, we are not changing a thing. What could Trump do at that point? would he allow the US auto Industry to go bankrupt under his Presidency? Not in a MILLION years. He would cave very fast I would guess.
On the other hand, if the US auto industry thought it was a good idea and went ahead with it and pulled all Manufacturing out of Canada and Mexico crushing that part of the economy. What I would do at that point as the Canadian Prime Minister is drop all Tariffs against Chinese Auto manufacturers, swing the Market wide open and totally price out the US Auto Makers, this would most likely happen in Mexico also. There would be no reason anymore to protect the US auto industry like is currently done. Canada followed US last year and put 100% tariffs on Chinese electrics. Pull all tariffs and Price the US out.
As a Chinese vehicle example, just do a search on YouTube for BYD vehicles made by China. They are beautiful vehicles and inexpensive compared to US vehicles, why would we or the World buy anything American at that point. I would predict that eventually due to overly expensive US manufacturing, China would eventually take over as the World economic power. Yes, the US would drag back all of the manufacturers from overseas but the cost of everything would go nowhere but up killing the US competitiveness.
We always buy Honda Civics. They are built in the U.S.. We were thinking of getting a Toyota Corolla next time; they are also built in the U.S.. They are great cars for our purposes, and we’re very happy to buy American made.
So are all of their parts made here? Unsure of this. Because the tariffs can be on supply chains. Messing everything up. Like I said… not sure of the parts supply chain.
Look at the thumbs down. You did not answer my really good question. Literally one of my least contentious questions. I’m guessing you know Im right. Answer the question,
You don’t know me, but I have read Mish since the crash in 2009. I always thought of him as reasonable. No, I am not a conservative. But I do know I’m sensible on a lot of issues that both the right and left think about. I did stop reading when we seemed to be more stable as a country. Right now we are not stable. I’m back gain. These last few days I have been commenting for the first time. I don’t expect you to like me. I get it. I do miss the time when we were two parties and not in the process of civil war. We are there now.
Statisticians tend to extrapolated. They are blind during systemic changes. Very few are good at game theory.
And they are lousy at poker.
Yep, it’s just a game. Idiot!! Lotsa time in the old basement I think
LOL don’t worry about the downvotes, Mish spent the last couple years thrilling right wingers by mocking Biden and now they’re shocked that he’s calling out the Trump administration for being stupid & incompetent liars.
It would appear that he is unbiased in his criticism of both sides.
Independence does wonders for editorial content!
Right or left, a spade is a spade.
I started reading Mish in 2009 too (give or take a year), but then took a break. I didn’t downvote you. However, we don’t yet know how this will affect supply chains and there is no reason to think I would know the answer, so why should I come up with some random claim? Just to clog up the comment section?
Tariffs are reciprocal. All Canada has to do is to lower the tariffs they charge the US to what they want the US to charge them. If Trump keeps his promise Canada could theoretically lower the tariffs the US charges to zero. The problem is that they want to keep all that tariff revenue while shielding their own industries from level competition. If you look at it properly, they are really being selfish rather than a fair trading partner.
“Tariffs are reciprocal. All Canada has to do is to lower the tariffs they charge the US to what they want the US to charge them.”
I am really tired of having to rebut the above stupidity.
But USMCA IS reciprocal right now.
In extremely minor instances where it isn’t, TRUMP negotiated the deal.
Please read, this and report what a fool you are to believe Trump.
Cheese Was a “Key Achievement” of Trump’s USMCA Trade Agreement
https://mishtalk.com/economics/cheese-was-a-key-achievement-of-trumps-usmca-trade-agreement/
It’s good of you to try Mish, but these guys don’t do critical thinking. They have their new marching orders and you’ll see the same dumb language all over the place pretty much cut and paste.
This post is incredibly detached from reality.
You took my name! I am Doug78 and not just “Doug”. It might be useful for one of us to change our handle to avoid confusion. Of course if you get a lot of upvotes then I might profit from that confusion so I will hold off on complaining for the moment.
George Friedman said something interesting about Canada the other day during an interview. He said he was puzzled by Trump’s excessive treatment of Canada so he reached out to his contacts in Canada who are of course in the intelligence community and the answer he got back was that they in the community there were very worried about how much China and criminal elements had penetrated the political system and it is to such an extent that it is risking the “Five eyes” Agreement. Trump’s treatment of Canada in this case was him and the US telling Canada it is urgent to clean up its act. Friedman said with a smile he doesn’t endorse this view because he said he didn’t know for sure but it made a lot of sense to him.
Maybe it is not about tariffs at all.
It was first and foremost about getting rid of Trudeau ASAP. That’s been successful.
It’s secondly about changing Canada’s attitude on restricting oil/gas development due to climate change madness. We are about to find out whether this worked. So far Alberta’s premier has told Carney that Alberta won’t stand for a continuation of Trudeau’s policies on oil/gas development. This is a big really big deal.
If those 2 things change it will be a big success and help Canadians too who endured a lost decade under Trudeau.
Trudeau was a disaster for sure. Trump seems to have no problems with Carney so they probably have an understanding but we have to see how the elections turn out.
Even without additional tarrifs, autos have been unaffordable.
Demand for autos is in the tank and would have continued to drop even without the additional tariffs.
Enter tnew ariffs, prices up and demand down.
Simple math.
Trillions of dollars lost for some. Not all.
Government deficits to continue north of $2 Trillion.
Skip the summer vacation and eat at home. Pretend it is 1978 all over again.
We had scheduled hotel and AirBNB reservations in Utah and Co this summer then canceled after trump firing govt workers at national parks. $4000 plus out of that economy. I was considering a new car, canceled, $30,000 plus out of the economy. My guess is we’re not the only family doing this. Much more of this winning and we will be in a depression
GM stock sold off sharply since the latest 25% tariff announcement was made. The major American car companies also own their Canadian subsidiaries.
Tariffs aren’t good for anyone. Trump is the second-to-last person on earth to realize this. The very last will be some redhat halfwit who misses the messaging change on Fox News because they forgot to pay their cable bill.
Not forgot, CAN’T pay their bill because they no longer receive welfare.
Are we to assume that the “most beautiful trade deal ever negotiated”, the USMCA, is now dead?
This is going to decimate Canada…..
O Canada! Our tariff-ed home and native land!
True patriot love thou dost in us command.
We see thee rising prices, dear land,
The True North, strong and tariff filled;
And stand on guard, O Canada,
We stand on guard for thee.
Oh sure. They are going to pack up and move back to Britain or France, yes?
Mary Barra, GM QC manager during “Cobalt”.
Flush.
End of day
Hegseth still Sec. of Defense.
Waltz working with tech support to identify how Goldberg got a place in chain.
Gabbard got a dose of deep state operatives.
Ratcliffe would suspect there are moles in CIA
Trump got his first shot at tariffs. US moving towards keeping money spent by US consumer in USA. Impact on money velocity will take a few months. People should start to see money moving again in Local economy.
Tariffs such a Big deal that currencies did practically nothing different today.
Apart from the supply chain chaos faced by US car producers, US consumers will face an new avalanche of cost pressures: higher prices for imported cars; higher prices for domestic cars (obviously, domestic producers will raise their prices); higher prices for used cars (they are substitutes for new cars); and higher prices for car insurance (the cars cost more to replace).
Yes, but a lot of Americans will have good jobs that they wouldn’t otherwise have. That is a big plus.
I appreciate your sentiment. Corporations will look for slave labor wages. If you think you’ll work in a plant manufacturing cars in the south and make a good living… sorry they are famous for slave labor. Lowest minimum wages will be found in the south. Good times.
I have relatives who live in Indiana. Houses are very cheap there. They consider Amazon warehouse jobs to be well paid jobs that allow home ownership. I have relatives who live in Oklahoma; one of them works in a factory running a forklift and she rents a very nice apartment (she could buy a house) and owns several horses. Where I am am in CA, it would cost many times her salary to live the same life. Wages are high in CA but because of the cost of housing, we have the highest poverty rate in the country. You have to look at the whole picture.
There are no facts or logic supporting your belief.
LOL yeah minimum wage in red states remains $7.25
The median house price in Santa Clara, CA is 1.7 million. The median house price in Alabama (location of a Honda plant) is 211K. CA wages are not over eight times Alabama wages. I live in CA and there are homeless people everywhere.
You are correct
If you can find a car to buy. Shortages are going to be common.
We have a lot of idled auto manufacturing plants in the US, with that idling having been caused partially by unfair trade practices (tariffs) put in place by our “partners.” The car companies can start there. I am saddened by the fact that, no matter where the auto companies start, the UAW will be there, mucking things up.
I wish that the American politicians and businesspeople who also played a big part in facilitating this hollowing out could be held responsible for this betrayal and for the pain that their selfishness is about to cause, but there no getting around what is to come, if we want the US to be a viable country going forward. The Fed could help by aggressively lowering rates now, but they will be late, because they don’t care about pain to anybody but their mega-wealthy constituency. Well, the stock market did drop a lot today, so let’s go Fed!!
Those plants are so outdated. It will take years to start up new plants. Maybe it will work. But the whole idea of globalization was low wages for companies, cheap prices for products for the consumer. I guess we will see what happens.
Two thumbs down regarding reality. What is wrong with you? Dilapidated auto plants ready to fire up to make the latest technology? I really feel sorry for you folks. You just understand so little. We are doomed because of you folks.
but im bewildered as to why canada builds your cars other than we always have. these guys make proper union $35-40 an hour wages. i can see mexico but i think our economies have always been intertwined since before the war of 1812
Yeah! Back in the 60’s I worked summers in a steel mill. The mill was built in 1909 and kept alive by tariffs and quotas. There were signs all over the plant to call congress and demand tariffs.
Let’s see if central planning fixes all your problems.
If you are from America and support the future of America, then you should do some research about how many Chinese companies are in the supply chain for American defense manufacturing companies. You should also ask yourself why you don’t want higher paying jobs to come back to the United States. You’re probably Canadian.
Trump’s policies have already failed, you just don’t have the ability to think it through because you’re in a cult. As I stated before, he was ALREADY president in 2016 and passed tariffs on China. It’s been over EIGHT years because Biden kept those tariffs so where is your manufacturing miracle?
I believe in the free market, I have a high paying job because I have skills in demand, it didn’t happen by accident, took a lot of learning.
At some point, you will need to learn that central planning doesnt work. The fact that you can’t accept this fact is why you stay poor and ignorant.
Corporations want slave wages. They search for it constantly. It is their entire point of existence. Profits are disturbed by high wages and benefits. That’s why AI and robots are so desired. Profits baby…it’s everything. Woo hoo! Also, crush those loser unions. Americans do not deserve a voice in their compensation. Shut up loser beggar workers!!! Who the hell are you??
Anyway… just another day in corporate America. I’m sure we will all be fine with the powerful corporations benevolence. They’ve always cared so much.
Again…why do you not understand corporations chasing slave labor?
Why do you think so many US companies manufacture overseas? Because it’s Cheaper! What do you think will happen if they come back to the US? Their products will become allot more expensive. Who will that expense be passed on to? You the consumer!! What will that do to US competitiveness, it will kill it! Why is this so hard to understand??
To get high-paying manufacturing jobs back, we first need a better-educated US workforce force. I agree with little that Musk and Ramaswamy say, but on this one they are right.
Factory work is repetitive. It DOES NOT require more education. In fact, LESS education is desirable for these type of jobs as smart people get easily bored on an assembly line.
Watch the “How Things Are Made” show on TV and watch what the average factory worker does. It drives me crazy watching them. I can’t imagine working in a factory for 6 weeks, let alone 30-40 years.
Agreed. I spent a couple summers in university doing factory work and it was the best motivator ever for finishing my degree and not ever working in a factory.
I am talking high-paying manufacturing jobs; you are talking sweatshop jobs. Check out how a modern manufacturing plant operates in Japan or Sweden, and then reflect on the fact that 1/3 of Americans is barely literate.
Sure but there are a lot less of those type of jobs than people speak about. And AI driven machines will be able to do everything that say, a trained CNC machinist do now in the near future.
Then there is the increasing growth of 3-D printing, which eliminates the need for measuring clearances and such.
What will be needed is someone to do the CAD drawing and port that into the machine but again, a lot less of them than people are talking about.
And physically degenerate.
I agree. Unfortunately, these affected companies will have to either do the educating or figure out a way to bring in people from outside the US.
For sure. The trump administration is going full communist.
Central control. Boy are you people confused about what is happening. The republican/conservative party is going full communist/ fascist. Government control of everyone. Both of these groups hate democracy. Are you really good with all this control? I am going to answer that…yes you are!!
MAGA = AINO (American In Name Only) think about it.
Thought about it. You’re wrong. What does American mean to you?
MAGAs are a cult, their only thought, love, concern is for their cult leader and how they can be of servitude to him. They have no concern of America as a country or as a society. Many if not most think Trump is a god or certainly sent by god, they’re completely brain washed or brain dead. They are mostly stupid people, those that aren’t stupid are pure evil.
MAGA = AINO (American In Name Only)
Why yes, it is too late to save Akron Ohio and Flint Michigan.
50 years too late.
I know, let’s export our debt to the rest of the world. They love dollats!
Virtually all the new car manufacturing plants are built in right to work states (ie no UAW).
Most of the older mothballed plants aren’t viable anymore so they can’t be used.
I would bet Ford, GM, et al are so THRILLED they are downright catatonic.
Who knows when they’ll snap to!
…more fireworks please!
(My orders have stopped and started so much DoorDash won’t take my fireworks orders any more.)
For every action there is a reaction. Higher prices will price out many buyers out of the market. Perfect storm for Ford to lose market share as pickups become unaffordable.
I don’t buy cars NEW. Buy em used, keep them for decades, Tariff affects me little, it just kills the market by the tariff percentage on the front – end.
If the prices of new cars go up. Guess what happens to used car prices.
They are not always in sync but think about the long haul.
I’m already panicked about insurance inflation. God knows repair parts will jack up (if source able!) and the insurance companies will jump right on this and not wait.
I’m checking into paying my policy 6 months ahead (to avoid price hikes for now).
I got you beat, I don’t have car at all. What people don’t realize is that higher prices for cars will result in higher prices for insurance, taxes, and maintenance. Good luck to you car owners.
Don’t tell me you are a cyclist? Car drivers loath cyclists.
Uber. And if I need a car for the weekend there is Avis, Enterprise, etc.
Don’t you need parts for repair?
If Trump did the tariffs plan over 3 years, would it not give companies enough time to rearrange their production and expenses to minimize these costs.
The biggest problem is uncertainly and short time horizons to make any adjustments to tariffs.
Supply shocks come with a 2 week tariff announcement. They don’t have to come with a 3 year window. Why isn’t THAT being proposed?
What happened to the democrats cheering to buy local????
Slave labor planet wide has given you your cheap products. If they come here ( I get it) then they will have to pay slave labor wages or higher wages. Higher wages means higher priced products. Not sure how this is resolved. Corporations do not want you to have a living wage. Why do so many of you not understand corporate power planet wide? You are powerless. Accept or fight. We are the plantation and you are not the masters.
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New factories will he heavily automated with many robots. Very few additional humans will be employed, which is Trump’s main goal.
Heavily automated takes a long time to implement, is not easy to modify once it is setup and is very expensive, the Return On Investment once you have paid for all of the Automation would take forever if ever unless it is for high priced items. If you heavily automate you are also not creating many jobs, than what is gained by bringing the manufacturing back to the US at that point? It would only make sense doing this for highly strategic and critical items such as Chip manufacturing, nothing else makes sense. One of the HUGE advantages of US companies manufacturing overseas is not just the much lower wages but also the much higher and stronger purchasing power of the US dollar.
Fast food franchises are replacing workers with robots. High volume-low margin businesses can also profit from automation.
I don’t have any figures on the cost of automating factories. I suspect that it is a lot cheaper to implement automation, especially for a brand new factory, than you make it out to be. And that figure gets less each year, especially when they can eliminate any human labor to install and program the automation. AI should help significantly in this area moving forward.
Remember, corporations do not exist to provide makework jobs for humans or benefit society.
They exist to create profits for investors/owners, which is why they always look for the cheapest way to produce the products/services they sell.
Title: The Case for a Maximum Wage Law: Bridging the Wealth Gap in America
Introduction
Income inequality has become a defining issue of our time, plaguing societies across the globe. In the United States, the wealth gap between the ultra-rich and the working class has reached staggering proportions. To address this growing problem, it is imperative to consider bold solutions that promote fairness, economic stability, and social cohesion. One such solution is the implementation of a maximum wage law, which would cap the earnings of the highest-paid worker within a corporation at no more than 12 times the salary of the lowest-paid worker. This essay will argue that such a law is necessary to promote economic justice, reduce income inequality, and create a more balanced society.
I. Income Inequality: A Growing Problem
II. The Need for a Maximum Wage Law
III. Possible Criticisms and Counterarguments
Conclusion
The implementation of a maximum wage law limiting the highest-paid worker in any U.S. corporation to earning no more than 12 times what the lowest-paid worker earns is a bold and necessary step towards achieving economic justice, reducing income inequality, and creating a more balanced and equitable society. While there may be legitimate concerns and criticisms, the urgency of addressing income inequality outweighs these challenges. Such a law would promote fairness, encourage fair labor practices, and contribute to economic stability, ultimately strengthening the social fabric of the United States. It is time for our society to embrace the principles of economic justice and take meaningful steps towards a more equitable future.
These big tariffs are simply “beautiful.”
Are we winning yet?
Uhmmmm…not feeling it
I’m definitely getting more thrilled every day!
You too?
you like $150,000 trucks?
I’m not sure that vehicles from Mexico and Canada will be hit with 25% tariffs. Sounds more like the foreign sourced parts in those vehicles will be tariffed.
From USA Today:
President Donald Trump on Wednesday imposed 25% tariffs on imported automobiles, barreling forward with a whiplash economic strategy that has rattled markets and ignited a global trade war.
Trump detailed the tariffs, which will start at 2.5% and rise to 25% on all foreign cars and light trucks, in front of reporters in the Oval Office.
“This is the beginning of Liberation Day in America,” Trump said before signing an executive order directing the tariffs, which will go in effect April 2. “We’re going to charge countries for doing business in our country and taking jobs, taking our wealth, taking so much out of our country.”
The tariffs will also apply to some imported auto parts, including engines and transmissions, according to the White House.
Automobiles that fall under the umbrella of imports protected in the Canada-United States-Mexico Agreement — a trade deal orchestrated by Trump in his first term — won’t be subject to the full tariff rate. Instead, the U.S will only levy tariffs on the foreign parts that make up vehicles imported from Canada and Mexico.
The new auto tariffs ‒ which Trump characterized as “very modest” ‒ will go on top of existing tariffs on the imports.
The move comes ahead of his long-promised reciprocal tariffs, which are also set to go into effect April 2, whereby the United States will respond to any nation’s tariffs on U.S. exports with tariffs of the same rate on imports from that country.
U.S. stocks tumbled in after-hours trading after the auto announcement. Futures contracts tied to the broad S&P 500 index were down more than 1%, while those linked to the tech-heavy Nasdaq were off nearly 2% in the late afternoon.
Automaker stocks were also lower: General Motors Company shares lost nearly 5% and shares of Ford Motor Company, the only major U.S. carmaker to end the trading day higher, were more than 2% lower.
The United States imported $474 billion worth of automotive products in 2024, including passenger cars worth $220 billion. Mexico, Japan, South Korea, Canada and Germany, all close U.S. allies, were the biggest suppliers.
Stocks have been on a roller coaster ride as Trump has announced, then walked back, various rounds of tariffs over the past several weeks. Consumer sentiment has also been battered, and inflation expectations have spiked, concerning some Federal Reserve members. Tariffs, which are taxes on imports, are typically passed down from companies to consumers, economists warn.
Trump has argued leveling tariffs on a broad set of industries will boost theo nation’s declining manufacturing sectors.
Earlier this week, Trump announced plans to impose a 25% tariff on imports from any country that purchases oil or gasoline from Venezuela, targeting the South American nation for what he called “purposefully and deceitfully” sending criminals into the United States.
Previewing the auto tariffs, Trump said manufacturers of cars and other products “are pouring back into the country” because of previously announced tariffs.
Hyundai announced Monday a $5.8 billion investment in a Louisiana steel mill, as part of $20 billion in investment planned over the next four years.
“This is going to lead to the construction of a lot of plants, in this case, automobile plants,” Trump said “And you’re going to see numbers like you haven’t seen, in terms of employment.” He acknowledged, however, “It takes a little while.”
White House staff secretary Will Scharf, as he presented the order for Trump to sign, said the auto tariffs will result in more than $100 billion of annual revenue for the U.S.
“It’s going to make our country very rich, because we’re the piggy bank that everybody steals,” Trump said.
Trump noted that House Speaker Mike Johnson, R-La., attended the tariff executive order in the Oval Office. The president added that congressional Republicans are developing legislation to give a tax deduction for interest on car loans for cars made in America.
“Mike, I hope you can get that because it’s going to be amazing,” Trump said.
Industry experts and former U.S. officials expect the administration to rely on an investigation Trump used during his first term as justification for the new levies.
In a Wednesday morning sales forecast call, Cox Automotive chief economist Jonathan Smoke said massive increases in tariffs would be “highly disruptive” to North American vehicle production, potentially leading to tighter supply, higher prices and a “much weaker economy.”
Without carve-outs for automobiles and parts, Smoke said the auto market could be facing the highest effective tariff rate since World War II. Costs to make a vehicle assembled in Canada or Mexico could go up $6,000 or more, he said, while higher costs for parts could increase production costs for U.S.-made vehicles by roughly $3,000.
Smoke said new and used prices would likely increase. Tariffs could also mean fewer affordable options for drivers. With roughly half of the affordable vehicles sold in the U.S. dependent on Mexico or Canada, Smoke said rising costs could eliminate some of those nameplates.
Well stated!
I always thought it was on parts and the value of assemblies.
And maybe it is. But what will it be tomorrow?
The $6,000 and $8,000 numbers reflect parts and assemblies, not the whole car.
its going to lead to reactive tariffs on the energy we provide Minn, Michigan, New York, Maine, Washington and I believe Ohio immediately raising citizens costs
Gas prices have gone up by 15 cents this week in my market (supply from Canada). Not appreciated!