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Six Auto Groups Lobby Trump Warning About Layoffs and Bankruptcies

In a rare, unified message, auto groups warn Trump about tariffs.

CNBC reports Auto groups lobby Trump administration against parts tariffs

  • Six of the top policy groups representing the U.S. automotive industry are uncharacteristically joining forces to lobby the Trump administration against 25% tariffs on auto parts that are set to take effect May 3.
  • The group – representing franchised dealers, suppliers and nearly all major automakers – say the upcoming levies could jeopardize U.S. automotive production.
  • The letter is addressed to U.S. Treasury Secretary Scott Bessent, U.S. Department of Commerce Secretary Howard Lutnick and U.S. Trade Representative Ambassador Jamieson Greer.

Yahoo!News reports Auto industry tells Trump that tariffs on car parts will mean ‘layoffs and bankruptcy’

“Tariffs on auto parts will scramble the global automotive supply chain and set off a domino effect that will lead to higher auto prices for consumers, lower sales at dealerships and will make servicing and repairing vehicles both more expensive and less predictable,” said the letter.

“Most auto suppliers are not capitalized for an abrupt tariff-induced disruption. Many are already in distress and will face production stoppages, layoffs and bankruptcy,” the letter added, noting “it only takes the failure of one supplier to lead to a shutdown of an automaker’s production line.

An analysis by the Center for Automotive Research published earlier this month found Trump’s 25% tariffs on automotive imports, implemented on April 3, will escalate costs for U.S. automakers by about $108 billion in 2025.

Trump vs Auto Industry

On March 26, 2025 I noted News Flash: Trump Says “Car Companies Will Be Thrilled With Tariffs”

The word of the hour is “thrilled” by 25 percent tariffs on autos starting April 2.

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.

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.

Is paying $6,000 more per car combined with potential massive hemorrhaging on supply chains thrilling or what?

But oh, don’t worry about that either because Trump says tariffs won’t increase prices.

More Thrills Coming May 2

On May 2, “de minimis” exemption on shipments of goods worth less than $800 are set to expire on May 2.

CNN Reports Shein and Temu just started raising prices ahead of new tariffs

“Cheap goods” sold on Temu and Shein aren’t as cheap as they were 24 hours ago.

On Friday, the two companies raised prices on many goods in advance of new tariffs set to take effect next week. The companies had informed shoppers of the coming price hikes last week.

American customers of Temu and Shein, which source most of their products from China, have largely been able to avoid paying tariffs due to an exemption on shipments of goods worth less than $800. That exemption, known as “de minimis,” is expiring on May 2, the result of an executive order President Donald Trump signed earlier this month.

Businesses will either have to pay a 120% tariff or a flat $100 fee per postal item. Come June 1, the flat fee will increase to $200.

Both sites encouraged customers to make purchases prior to April 25 to avoid paying higher prices. However, it’s unclear if buyers will avoid paying the 120% tariffs if their orders arrive after May 2.

Who won’t be thrilled with that?

On April 23, CNBC reported Trump considering exemption for automakers on some tariffs, White House says

President Donald Trump is considering exemptions for automakers from some tariffs announced by his administration, the White House confirmed Wednesday to CNBC’s Eamon Javers.

The confirmation follows a Financial Times report that Trump is planning to exempt auto parts from tariffs on imports from China that Trump imposed to counter fentanyl production as well as levies on steel and aluminum.

The exemption would be separate from 25% tariffs on imported vehicles as well as 25% tariffs on imported auto parts that is scheduled to take effect by May 3, the FT reported.

Shares of many automakers and suppliers were marginally higher Wednesday in after-hours trading.

Separately on Wednesday, Trump reportedly said a 25% tariff imposed on cars imported from Canada to the U.S. could go up.

“When I put tariffs on Canada — they’re paying 25% — but that could go up, in terms of cars,” Trump told reporters in the Oval Office. “All we’re doing is we’re saying, ‘We don’t want your cars, in all due respect. We want, really, to make our own cars.’”

So it appears Trump may grant relief on parts from China but not Canada.

Progress on Deals

Please note Trump Tells Time Magazine He Has Made 200 Deals Already, Refused to Name Any

200 deals would mean deals with every country, territory, and regional association in the world.

Check out this incredible interview with Time. I provide the key quotes.

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Mish

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Greg
Greg
1 year ago

After Trump destroys the North American auto industry, can we have cars from China duty free?
Here’s what you can get for $16K & I believe that includes FSD.
https://www.youtube.com/watch?v=ASJH1Sx923I

bowwow
bowwow
1 year ago

There are segments of the US market who wouldn’t deserve even more of what has already occurred with the cost of cars and repairs. Finding it hard to empathize with the industry lobbyists. Without knowing the outcome or whether there will be US imposed tariffs on parts, I wish they would try harder to have cars available without unnecessary add-ons. In terms of who gets less or left out, the financial services sector may want to apply some underwriting for car loans again.

njbr
njbr
1 year ago

Reading the Time interview, Trump sees himself as the owner/manager of a department store where he decides who can sell in the store and at what price and at what concessions to him. It’s all about access to the store. Except, he doesn’t make the transition to understanding that the customers of a department store are the American consumer who are being subject to the arbitrary pricing decisions of a person who receives their rewards from the country that gets the priviledge to have their products in the store.

How far down the road to a command and control economy are we?

Michael Engel
Michael Engel
1 year ago
Reply to  njbr

Owners or buyers asks: can we sell SKU #1234 to our customers. If yes: how much can they pay.. If we can’t make money on them, forget about it. It’s an art. They know what sells and at what price. They start from 6:1, or 3:1 and go for about 1:1. If our customers don’t care about a certain designer: forget about him. If they do we can sell them T- shirts and underwares.

Last edited 1 year ago by Michael Engel
bmcc
bmcc
1 year ago

doesn’t matter who you are. some billionaire self made man. some CEO backslapper cutthroat con man. some dictator of Russia or China. some president of a decent republic. when you speak with Donald Trump, you are speaking with a lunatic schizo actor con man. go down to the homeless camps in some amerikan city and practice on those schizo druggies. might do you some good. in other words fat old zion donald is our nero.

Michael Engel
Michael Engel
1 year ago

Western and central PA are blessed with NG. PA has energy and the brains. PA is 60% off CA and NYC. Fifty AI data ctrs are popping up in PA. Sony builds a 2.8 mSF innovation center in Westmoreland county PA. A reps gov, if elected, might drill baby drill NG in western NYS along with building a pipeline connecting OH, PA, NYS and beyond. The dems run their state like obese women with a fatty liver who refuse to change their diet and lifestyle until the end.

Last edited 1 year ago by Michael Engel
Frosty
Frosty
1 year ago

Trump promised de-regulation and is delivering draconian restrictions on where to source materials, where to source labor and what supply chains can be used.

whirlaway
whirlaway
1 year ago
Reply to  Frosty

The deregulation is happening – in the form of gutting environmental laws, labor laws and consumer protection laws etc.

striketheroot
striketheroot
1 year ago
Reply to  whirlaway

Along with the “DEGRIFTING” of numerous NGOs.

I’m back robbyrob
I’m back robbyrob
1 year ago

U.S. Customs duty collections skyrocketed more than 60% in April, marking the highest monthly revenue from tariffs and excise taxes in American history, according to newly released Treasury Department data reviewed by Bloomberg. The federal government collected at least $15.4 billion in customs duties last month — $6 billion more than in March — coinciding with the first wave of President Donald Trump’s newly implemented tariffs.

alx west
alx west
1 year ago

= $6 billion more than in March 

considering that USA yearly gov budget deficit is about $2 trln +- 100bln,
$ 6 bln is 1/3 of 1% of budget deficit

keep on counting.

bmcc
bmcc
1 year ago
Reply to  alx west

MAGA CULT are basically morons. like the manson family cult.

bmcc
bmcc
1 year ago

idiots applauding border taxes and huge increases in government meddling in our lives. those are rounding error numbers compared to the 4trillion in debt zion don will increase this summertime. let’s see how IRS collections come in when corporate taxes are tallied

realityczech
realityczech
1 year ago

Yes, that it is a tax that importers will hand off to end customers.

bmcc
bmcc
1 year ago

all empires die. old zion don will be our nero. don’t worry kids. underneath the empire are millions of barbarians and people that will just keep on keeping on. i eyewitnessed the demise of USSR in the early 90s and entire 90s. things were better, though the old geezers north of 40 had trouble dealing with the new system.

Nezz
Nezz
1 year ago
Reply to  bmcc

I don’t agree with these trade policies but I can definitely say that it’s better than the Previous President’s Cult of Marxist/Swindling Green Energy Agenda 2030/Burisma $$$ Bribing/Transgender Loving/Ukraine & WarIII Promoting/Open Borders/Protecting Illegal Alien Rapist & Murdering Criminals.
Que No?

Michael Engel
Michael Engel
1 year ago

It’s an option. It’s not a radical option. Trump isn’t fully committed to bring the car industry to the 50’s, to the vertical model. He wants to swing the pendulum back to our side. If it doesn’t work we will sell this option, cut our losses and AAPL, across the pond, will sell Iphones for 2K in the US and Chinese coolies will assemble BYD EV in Detroit.

Last edited 1 year ago by Michael Engel
Since2008
Since2008
1 year ago

The letter says, “We support more manufacturing and additional supply chains that run through the United States,but it is not possible to reroute global supply chains overnight or even in months. This will take time.”
One of the 6 lobby groups reps foreign manufactures.

Michael Engel
Michael Engel
1 year ago
Reply to  Since2008

Without the stick they will benefit from fresh carrots.

alx west
alx west
1 year ago
Reply to  Since2008

=but it is not possible to reroute global supply chains overnight or even in months. This will take time

wow!!!!

They do KNOW HOW WORLD WORKS AND TRADES

apparently Trump does not.

Nezz
Nezz
1 year ago
Reply to  Since2008

Context is a big factor.
The Marxists/Leftists/Middle Class America-hating Commies will never understand..

Peace
Peace
1 year ago

Without prior planning it is too stupid to reverse the exorbitant privileges of reserve currency status ( buying real goods with printed paper ) for over 5 decades in a few months.
It is painful,
Very painful.
Very very painful.

IRISH
IRISH
1 year ago

as if miniature golf don the old cares. as long as he has his money pouring in he cares nothing about others.

Michael Engel
Michael Engel
1 year ago

If Ford and GM become vertical again, as they were in the 1950’s/60’s, BYD will takeover. If China, Canada and Mexico produce most of our cars and parts, they will hollow up the US. They will become rich and powerful and we will be their subjects. The pendulum have swang too far in favor of the exporters. Most of the industrial activity is done by foreign entities. They move parts and cars from one country to the next and from one dot to the next in the US. It’s time to swing it back to slightly beyond the middle in our favor, not back to the 1950’s. China, Mexico and Canada resist bc the became entitled to feed their people, their poor, at our expense, fearing high unemployment and weaker currencies..

Last edited 1 year ago by Michael Engel
IRISH
IRISH
1 year ago
Reply to  Michael Engel

repeating the deranged don old’s BS? funny how things worked until agenda 25 was created .

Nezz
Nezz
1 year ago
Reply to  IRISH

“Things Worked”?
Yeah, ‘Things’ were just swell under dementia riddled Sock Puppet FJB!

Frosty
Frosty
1 year ago
Reply to  Michael Engel

Our unemployment rate was exceptionally low before trump and jobs were plentiful. The problem was low corporate taxes and high spending. The way to fix the budget deficit was gradual tax increases and gradual decreases in spending, coupled with full employment and high velocity of money resulting in increased tax revenues for federal, state and local economies.

We traded a “Stuttering Statesmen” for “Demented Don”, it was a bad trade!

Nezz
Nezz
1 year ago
Reply to  Frosty

Employment numbers were ‘JACKED” by month after month after month record hiring of un-needed Fed Gov workers by the FJB Admin..
And during the last 24 months of the FJB Admin, according to the gov statistics, American workers had a net loss of jobs to FOREIGN and ILLEGAL ALIEN workers.
How long can that go on w/o the collapse of Native-Born Middle Class America?

peelo
peelo
1 year ago

Trump looks at the world as if through a periscope, and the last person he spoke to, often defines it. I had noticed for some reason he is oblivious to automakers. He is in so far over his head, it is not funny. This emperor has no clothes. He is a real estate chiseler and TV personality of a bygone era.

Sunriver
Sunriver
1 year ago

80% of the American population can not afford a new car. With or without tarrifs.

Why not make it 90%? How about 95%

The era of the Post WWII American consumer is over.

Tell me, who will take their place?

limey
limey
1 year ago
Reply to  Sunriver

well that’s one way of reducing imports to the US.

IRISH
IRISH
1 year ago
Reply to  limey

isolation is here.

peelo
peelo
1 year ago
Reply to  Sunriver

Overbuilt cars are garbage. I don’t need all those electronics, or any of them. And let’s get roll-up windows to start. This is scandalous, and scandalously stupid. It is anti-competitive, a combination and conspiracy in restraint of trade, and to pick the public’s pockets. I can’t believe this has gone un-addressed.

Frosty
Frosty
1 year ago
Reply to  peelo

Excuse me? Our modern cars are safe, fast and efficient! Most modern sedans will blow a 68 Camaro Z28 into the weeds and out handle, out brake and get 5x the gas mileage without the stink of massive emissions!

Todays cars regularly go well over 300,000 miles with decent maintenance.

No thanks to roll-up window dinosaurs. If you want one, go buy a 1967 Chevrolet Bel Air four door for a grand that gets 8 mpg and see how long it runs before the plugs foul or points wear out?

The good ol daze are gone for good reason!

alx west
alx west
1 year ago
Reply to  Frosty

i will take any Japanese car from 1995 to 2005 over any produced now.
used to have Camry 1998. immortal

even Japanese cars now fall down in quality

Nezz
Nezz
1 year ago
Reply to  Sunriver

Low paid, low-skilled, taxpayer subsidized, Medicaid dependent, illegal and foreign born labor.
Just as has been happening for the last 20 years (or more)…

njbr
njbr
1 year ago

In a survey conducted April 2-3 of 2,000 U.S. consumers ages 18 to 79, around half reported having used buy now, pay later services. Of those consumers, 25% of respondents said they were using BNPL loans to buy groceries, up from 14% in 2024 and 21% in 2023, the firm said.

Meanwhile, 41% of respondents said they made a late payment on a BNPL loan in the past year, up from 34% in the year prior, the survey found.

Lending Tree’s chief consumer finance analyst, Matt Schulz, said that of those respondents who said they paid a BNPL bill late, most said it was by no more than a week or so.

IRISH
IRISH
1 year ago
Reply to  njbr

fact is no one needs a loan to buy necessities. thats the indicator that the u.s. is doomed.

Casual Observer
Casual Observer
1 year ago

I won’t say where in California, but I’m shocked at how much mall traffic there was today.. I can only chalk it up to money laundering as there’s no real economy here. I saw a bunch of foreigners and very few people who spoke English. I hear the Trump administration is now allowing 60-day visa free travel from some countries.

SleemoG
SleemoG
1 year ago

Brea Mall?

Casual Observer
Casual Observer
1 year ago

Trump has a more a few loose screws. Some have fallen out already.

bmcc
bmcc
1 year ago

zion don is a schizo.  nothing he does or says today is meaningful.  at best we can only rely on the fact that he just needs to be the center of attention, and this 2nd term he has surrounded himself with grifters and con men and yes men who will tell him “trump was right about everything”.  it is not a cult.  just like manson family wasn’t a cult.  

PapaDave
PapaDave
1 year ago

Trump will likely pause tariffs on auto parts for a third time, though I wish he wouldn’t. I would like to see his tariff war play out as long as possible so we can see the result clearly. I expect the auto industry would be shut down within 2 weeks of the start of auto parts tariffs.

In an earlier thread Six000Mile Year commented that Trump is fixing the US economy, in the same way that Milei fixed Argentina.

He has it exactly backwards. Milei is an advocate for free trade. And he is fixing an Argentine economy that was ruined by tariffs and trade restrictions.

Here is part of a speech from Milei.

https://www.cato.org/blog/milei-free-trade

“We need to give back to Argentines the freedom to trade with whomever they wish, so that goods and services can enter the local market and everyone can freely buy better quality products at a better price. For decades, under the premise of protecting a handful of jobs, the cost of living was deliberately made more expensive for millions of Argentines. In many cases, even forcing them to purchase goods of dubious quality at completely distorted prices. It is not fair that only those who can afford a trip abroad can buy what they want at international prices. It has to be for everyone. Opening markets will also open the doors of the world to Argentine companies so that they can sell our products to 8 billion people, in an international context where what Argentina has to offer will be in great demand.

“I also want to put an end here to another fallacy, which they have been using to lie to us for almost a hundred years, and that is the issue of the infant industry, an infant that is at least 90 years old. Or, let’s say, to protect industry X, because it generates jobs. That is also another lie. Because if in the process of opening up the economy, a better quality or better-priced product enters and a company goes bankrupt, it is also true that consumers now have more money in their pockets and can spend it in other sectors of the economy. Therefore, employment will be reallocated and will go to sectors where it is more productive and where there are higher wages and, therefore, there is greater welfare for all. Therefore, enough of the protectionist lie, because, in the end, it is nothing more than a scam between politicians and rent-seeking businessmen.”

bmcc
bmcc
1 year ago
Reply to  PapaDave

correct about argentina. the schizo amerikan policies of 2025 are gonna hurt amerika, there is no doubt. nobody knows how badly. trying to trade and do business with a schizo potus is simply insane. glad i’m a lifelong stock and currency trader, but it takes work with this nutjob. i should probably do mushrooms to get on the same wavelength as the DC administration.

Six000MileYear
Six000MileYear
1 year ago

The irony in all of this is surging car and part prices will curtail car use, but environmentalist will still hate Trump.

I’m back robbyrob
I’m back robbyrob
1 year ago

where is my $5000 check?

Stu
Stu
1 year ago

Went to help pay for the Champagne at the recent Senator Meeting abroad…

dtj
dtj
1 year ago

The $2 trillion DOGE cuts were revised down to $150 billion.

Coincidentally, the defense budget will be increased by $150 billion next year, so there goes the DOGE savings.

At the same time, the debt limit has been raised by $4 trillion to make way for more deficit spending.

Now, about that DOGE check you’re looking for…

Robert Paulson
Robert Paulson
1 year ago
Reply to  dtj

Elon got his feelings hurt and shuffled off.

Frosty
Frosty
1 year ago
Reply to  dtj

The DOGE cuts were simply politically targeted hack jobs and may not even reach $125 billion. Plus the legal hurdles will cost additional billions.

Defense spending goes up to a trillion – but we can’t manufacture mission critical parts because China has the rare earths and refining capacity. He has cost us the ability to import them without stockpiling them first. Idiocy or malice? Take your pick!

Trumps tariff disaster is the perfect way to destroy our military capacity. China and Russia do have access to rare earths and our supply of satellites, long range missiles, jets another sophisticated military hardware will crash in less than six months.

Who does trump work for?

Trumps secretary of defense is so disconnected from our military that he leaks military secrets to family and friends on non-secure platforms. He is like a child, “hey mama, look at what a big shot I am”. Revolting!

Trumps budget of course asks for another $4.5 trillion in tax cuts on top of his already bloated spending deficits and falling tax revenues.

As if interest rate cuts and petitioning the Fed for “free money” to make up for an intentionally crashed economy is going to ease the pain? Starving the market of goods and increasing the money supply is exactly how the covid inflation happened in trump 1.

The only skill trump has is bankruptcy, grabbing headlines and grift. How many hardworking contractors did he bankrupt while building his bankrupt casinos? Hundreds!

Again – I ask the question, who does trump work for?

Last edited 1 year ago by Frosty
Stu
Stu
1 year ago

– In a rare, unified message, auto groups warn Trump about tariffs.
> It should be “Very Rare” imo, why would Auto Groups unify against their recently overwhelmingly Elected President? On top of the utter disrespect (That demands to be done behind closed doors), they together “Warned Him” and that total disregard and care for Trumps Office, which is for Our Overall Country, and not Just some Auto Manufacturers that obviously think they are so special, and wiser, was simply reckless.

– Six of the top policy groups representing the U.S. automotive industry are uncharacteristically joining forces to lobby the Trump administration against 25% tariffs on auto parts that are set to take effect May 3.
> My guess is that they Spent the Money meant for backfill inventory of All Crucial Parts? For your “Reputation” if you’re too lazy to find many more reasons.

>> Wouldn’t take long for a company to go out of business with that “Business Model” Oh Wait, That’s Exactly What’s Happening!!! Look At That… Wow, should have known better…

– The group representing franchised dealers, suppliers and nearly all major automakers – say the upcoming levies could jeopardize U.S. automotive production.
> My guess is because the people and Businesses that were supposed to, didn’t hold up there end? Now it’s going to hurt more businesses. Hell, if they keep this up, ALL these businesses could start Effecting there actual Consumers…

– The letter is addressed to U.S. Treasury Secretary Scott Bessent, U.S. Department of Commerce Secretary Howard Lutnick and U.S. Trade Representative Ambassador Jamieson Greer.
> They could have read some varying newspapers and watched some varying News Stations, and saved a stamp. You would have received the Same Exact” Answer, but you knew that already, its for show to try to make a bogus claim perhaps?

– “Tariffs on auto parts will scramble the global automotive supply chain and” blah, blah, blah. Because
> Why again?

– “Most auto suppliers are not capitalized for an abrupt tariff-induced disruption.
> Nope, because they don’t happen, and if they did, they would have been far better prepared, as they should have been for “ALL Critical” thereby Saving there Customers Money, and Assuring that there “Customers Had What They Needed” but that didn’t happen now did it? Where deid the money go again?

– Many are already in distress and will face production stoppages, layoffs and bankruptcy,” the letter added, noting “it only takes the failure of one supplier to lead to a shutdown of an automaker’s production line.“
> Obviously the most poorest run, least stocked, spend money foolishly, have piss poor upper management, are hog tied into submission, because they sold out, and the bill came due, and may have the most short sighted, least experienced and shouldn’t be in any upper management, anywhere people making Decisions for them?

– An analysis by the Center for Automotive Research found Trump’s 25% tariffs on automotive imports, implemented on April 3, will escalate costs for U.S. automakers by about $108 billion in 2025.
> They Do Realize That’s ($108B) over “120 Countries Total GDP” for 1 Year. Wow that seems like a Worlds worth of tariffs X? in just under 9 Months!!! Wow…

– Cheap goods” sold on Temu and Shein aren’t as cheap as they were 24 hours ago.
> So don’t buy them.

– On Friday, the two companies raised prices on many goods in advance of new tariffs set to take effect next week. The companies had informed shoppers of the coming price hikes last week.
> Gouging “Gas Station” style I see… Again!

Pokercat
Pokercat
1 year ago
Reply to  Stu

“overwhelmingly Elected President” 1% of those that voted. You are a dunce or cult member. MAGA = AINO (American In Name Only

Stu
Stu
1 year ago
Reply to  Pokercat

– “overwhelmingly Elected President” 1% of those that voted.
> Do you know and understand what a “Swing State” Is? If so, do you happen to know why they are called that by chance? Do you know what % is assumed a rout, a crushing, an absolute obliteration of the opponent? Answers are “Must Win” – “Determining Factor” & “Winning Every Single Swing State”

– You are a dunce or cult member. > Nope, but an intelligent Human Being is getting a whole lot closer.
– MAGA = AINO (American In Name Only. > Here I thought it meant “Make America Great Again” I like what I think it represents a whole lot more!!!

dtj
dtj
1 year ago

Trumps’s ultimate goal is to make everyone rich. There may be some pain and sacrifice along the way.

You may be laid off. You may have to declare bankruptcy. You may wind up living in a cardboard box.

Don’t worry, you’ll eventually be rich if all goes according to plan. Keep the faith.

Christoball
Christoball
1 year ago
Reply to  dtj

I am finally a millionaire thanks to inflated equities, real estate, and high interest bank accounts. My boomer dream has come true. Hurray for inflation.

Nezz
Nezz
1 year ago
Reply to  dtj

YES, Agree! We were so much better off from Jan 20, 2021 to Jan 2025!
America’s Golden Age : )

Michael Engel
Michael Engel
1 year ago

After George Floyd death the invisible hands unleashed Antifa and BLM to burnt cars in dealers parking lots. During covid, when the US was comatose, dealers were loaded with millions of cars in their safe parking lots. Out of the ER, these dealers raised prices, sold online, during the WFH boom, making their best money in their lives. Thereafter they spent millions on fancy showrooms, which are mostly empty, and now they are crying. Consolidations and Detroit selling online, cutting the middlemen, like Ilan, might be next.

Arthur Fully
Arthur Fully
1 year ago

The gains from trade are real – this is fundamental to all commerce. However, the proposition is only strictly true when trade is, in fact, equivalent to barter. Ricardo pointed out that both Portugal and England gain when free trade between England and Portugal allow English cloth to be swapped for Portuguese wine putting the inefficient wine makers and inefficient cloth makers out of business.

In that model neither England nor Portugal runs a trade surplus or deficit, nor can they.

In the modern world the US chronically runs a deficit (and its commercial partners overseas run a surplus). Identifying the gain from that deficit/surplus is more complicated – it must be found in the subjective well-being of people overseas willing to forego present day in return for future consumption (and of people domestically to indulge in consumption today in return for abstinence tomorrow). The word “subjective” means “cannot be measured by objective criteria”. In theory the winners within the US should be able to compensate the losers, but as a practical matter that never happens.

A further complication arises in the long term nature of our trade deficit. It means that the people of this generation may benefit from self-indulgence in the US while people in the next generation are harmed by forced abstinence.

We should note that (according to US Treasury data) foreigners own $31 trillion of Treasury and corporate (dollar denominated) securities. That puts a massive lien on our children and is something we should not dismiss lightly.

Like it or not, this is where tariffs come in.

MPO45v2
MPO45v2
1 year ago
Reply to  Arthur Fully

“Like it or not, this is where tariffs come in.”

Except the tariffs keep getting turned off so frequently that they are meaningless. Now write a comment explaining where the constant caving comes in.

If tariffs are the solution then trump should stop postponing them and just implement them and let the magic work.

Robert Paluson
Robert Paluson
1 year ago
Reply to  MPO45v2

Plato had a cave. Plato was smart. Therefore caving is smart. Duh.

Michael Engel
Michael Engel
1 year ago
Reply to  Arthur Fully

If Portugal raises tariffs on alcohol and England raises tariffs on linen made by Portuguese cheap labor, neither will have a trade deficit or a surplus. But Portugal will stay backwards, in the back of the line, and England will rule the waves, and the global trade, as Portugal once did. Ricardo was a Jew of Portuguese origin,

Last edited 1 year ago by Michael Engel
Lefteris
Lefteris
1 year ago

A meeting between Government and Automakers. A Martin Scorsese theme.

Irondoor
Irondoor
1 year ago

I recall the attitude of many/most car dealers during the Covid restrictions. They tacked “market adjustments” of thousands of $$ onto their new car price stickers. Basically, if you wanted a new car, you pay us extra thousands of $$, even though our cost had already been paid. The manufacturers knew all about it and did nothing to stop it. Now the loans on those overpriced automobiles are way under water. Customers are screwed and the chickens have come home to roost.

I have absolutely zero sympathy for these lying, money-grubbing, sobbing car dealers and their arrogance. I do business in my community with the one dealer that played it straight all the way through and dealt with my wife and I with professionalism. And that’s Toyota. Didn’t add an extra penny.

I hope Trump tells the whole industry and the endlessly greedy unions to take a flying leap.

Fubar111111
Fubar111111
1 year ago

More 0D underwater backward upside down 0 IQ chess, aka The Art of The Fail

Empty shelves coming to every retailer near you starting in about a week, followed by store closures – what’s the point of opening the doors when there are no products to sell?

Don’t worry, you will have plenty of time to craft home-made Christmas gifts, when your job vanishes. And you won’t need to worry about auto parts, or driving, you won’t be able to afford that luxury anymore. I’d recommend you buy a good pair of hiking boots, or a bicycle for all that walking you’ll be doing, but since they are made in China too, they won’t be available either.

This is called “YUGELY WINNING BIGLY” by Trump supporters, a rapidly diminishing segment of the populace.

bmcc
bmcc
1 year ago
Reply to  Fubar111111

i’ve lived in 4 states. always walked for my shopping and commuting and daily life. location location location

Victoria "the Hutt" Nuland
Victoria “the Hutt” Nuland
1 year ago
Reply to  Fubar111111

With no goods available to buy, there should be a lot of inflation in services. Lot lizards will be pulling into truck stops in Lambos.

FDR
FDR
1 year ago

Without a tariff, DOGE, DOJ defendant, Ukrainian- Russian war score card, how does anyone keep up?

CHAOS.

The one constant is military, economic and political support of the Zionist’s genocide in the Gaza Strip, colonization of the West Bank.

Victoria "the Hutt" Nuland
Victoria “the Hutt” Nuland
1 year ago
Reply to  FDR

There are people here in Southern Appalachia still living in tents after having their homes destroyed and all Trumpybear can think about is securing Gaza for his closet case son-in-law.

SleemoG
SleemoG
1 year ago

They got what they voted for.

Jean
Jean
1 year ago

Relax and let Trump cook. We voted for this. I have full confidence in Trump because he’s playing 17D chess. LOL

Art
Art
1 year ago
Reply to  Jean

I’m afraid the reality is he’s playing 1D. But then instead of being afraid of what is happening, we are supposed to be ‘thrilled’….

MPO45v2
MPO45v2
1 year ago
Reply to  Jean

The secret is out, any references to xD chess is really code for “lying” but the cult clings to hopium. A drug far more powerful than fentanyl that causes endless delusion.

EADOman
EADOman
1 year ago

If this is all part of the art of the deal I’m not surprised that Trump has been bankrupted as often as he has.

Art
Art
1 year ago
Reply to  EADOman

Actually he has been bankrupt and not bankrupt at the same time….lol. Schrodinger Trump….Just like he is an economic failure and a economic genius.

Tony Frank
Tony Frank
1 year ago

Expect another capitulation.

Art
Art
1 year ago
Reply to  Tony Frank

Agreed, and it wouldn’t surprise me if there are economic stimulus checks by Xmas…Maybe price controls.

Last edited 1 year ago by Art
bmcc
bmcc
1 year ago
Reply to  Art

we will all be billionaires by 2029. the computer cursor currency is so easy to create. hit a few zeros on computer and wire into all our accounts. the plague years showed how easy it is. i told my pals a decade earlier that stuff was coming. the yang gang bucks will be a given in another 5 years. we will all be billionaires in a few years. tuxedos are optional.

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