New Car Prices Are Ticking Up. Sales “Hangover” is Likely as Trade Wars Heat Up.
Automotive Industry Inventory Report
Please consider the April On the Horizon Inventory Report, emphasis mine.
March represented yet another set of twists and turns in what has been a multi-year progression of unprecedented supply, demand, and pricing dynamics in the new vehicle marketplace.
This latest development comes in the form of tariff-related effects, with the Trump Administration implementing levies on materials and parts and moving toward adding surcharges on major vehicle systems and on vehicles coming from outside the United States.
As these actions are moving from threat to implementation, prices have already risen more than $1,000 at retail and have reversed a declining trend that had been playing out for the past eight months.
Consumers, in anticipation of these higher prices, rushed to buy new vehicles in the current period, with Vehicles Moved hitting a level (1.3MM) not seen since May 2021. While this provided a boost in the short run, the ”pull ahead” effect of these accelerated sales (estimated to be 153,000 in March) runs the risk of leading to a hangover effect that depresses results going forward. That risk is exacerbated if prices run up quickly, if the tariffs remain in place for a long period of time, and—particularly—if they spark a retaliatory and escalating trade war that pushes costs and prices even higher than the initial salvos would suggest.
Much Higher Costs
Deeper Dive on Tariffs
While the tariff situation has roiled the automotive marketplace, the reality is that we are still at an early stage of their potential effects. In the ten weeks since the Trump Administration came back into power, there have been a number of announcements, withdrawals, pauses, and scope changes in terms of the timing and structure of those levies. In the early stages, Average Marketed Prices stayed relatively steady as OEMs and dealers were in a “wait and see” mode as reality did not meet rhetoric. But starting in late February, retail prices started to ratchet up as that rhetoric heated up and as initial tariffs on steel and aluminum began to go into effect. OEMs, contending with uncertain supply chain costs, began pulling back on incentive plans. And dealers, anticipating price hikes from the OEMs, became less aggressive with their discounting strategies.
As a result of these pressures across the automotive ecosystem, the Average Marketed Price at retail increased by $1,123 from February 23 to March 31, reversing eight months of downward pricing pressure. And this is before the more widespread and costly tariffs on the major parts and cars themselves go into effect.
In an example of how the global supply chain is already affecting prices, it is not coincidental that XL SUVs, Full Size Pickups, and Heavy-Duty Trucks have been leading the charge in terms of those price increases. With V8 engines coming primarily from Canada, models and trims in those segments are an early harbinger of dynamics to come as costs (even threatened ones) get passed from the OEM to the dealer to the consumer.
And consumers are well aware of the risks that these tariffs pose in terms of future cost hikes, with price increases potentially moving from in the hundreds of dollars to in the thousands. To quantify the effect that this had in March, what has historically been around a ~10 point gap in Average Inventory vs. Vehicle Movement change MoM (see 2024 below as an example) moved to a 23-point gap in 2025. The additional “pull ahead” sales related to this wider differential equated to 153,000 units in the current period. With those sales now in the books, results in April and beyond will be that much more challenging, especially if tariffs are deep and of long duration. If so, we may move from worrisome to catastrophic if a significant number of consumers are priced out of the market or put off purchases until prices come down (or at least become more predictable).
Auto Inventory Pull Ahead
Producer Price Index PPI Plunges Led by a Decline in Gasoline
Earlier today I commented Producer Price Index PPI Plunges Led by a Decline in Gasoline
The Producer Price Index was unexpectedly weak again in March.
Falling Prices Hooray?
Yes, and no but mostly no.
The plunge in the price of gasoline and energy is a sign of a slowing economy. Consumers will like the drop in the price at the pump but the repercussions are ominous.
Impact of Tariffs
I bolded the key items: Prices for steel mill products increased 7.1 percent. The final demand goods less foods and energy rose 0.3 percent.
These are stagflationary items. Falling demand and rising prices.
This was not a good report.
Other than food and energy, prices rose. Prices for steel and aluminum are going to pressure automakers.
This isn’t hindsight. I discussed well in advance.
Seven Charts Show Tariffs Would Harm the US Auto Industry
On January 31, 2025, I commented Seven Charts Show Tariffs Would Harm the US Auto Industry
The CATO institute does a great job explaining why tariffs on Canada and Mexico would be a very bad idea.
Expect Higher Prices
On February 10, 2025 I commented Trump to Impose 25 Percent Tariffs on Steel and Aluminum, Expect Higher Prices
All US consumers of steel and aluminum will pay higher prices, especially the automakers.
The reinstitution of aluminum and steel tariffs across the board is in direct violation of Trump’s loudly bragged USMCA “Best Trade Deal in History”.
Michigan’s Economy Will Be the First Big Loser of Tariff Madness
On April 6, I noted Michigan’s Economy Will Be the First Big Loser of Tariff Madness
Nearly 20 Percent of Michigan’s economy is directly or indirectly related to autos.
Detroit’s automotive executives have shifted into battle mode. They are stockpiling imported components, wrestling with suppliers over price increases and setting up war rooms to figure out how to cut costs.
Trump has proven ability to repeatedly make the same mistakes, needlessly taunt allies, and violate his own treaties.
No good, and lots of bad will come from this, just as happened before.
Tariff Strawmen and Why Prices Didn’t Rise in Trump’s First Term
On April 8, 2025, I commented Tariff Strawmen and Why Prices Didn’t Rise in Trump’s First Term
A reader thinks that because prices didn’t rise in Trump’s first term, the same is true now.
Why Trumps Tariffs Didn’t Cause Price Hikes Before
- Tariffs were much smaller and targeted to specific countries.
- Tariff avoidance. Trade shifted from China to Mexico and Vietnam
- The dollar strengthened.
I have discussed this before, many times but refuting nonsense is hard when people have TDS Type II, and believe anything Trump says.
Now the dollar is weakening, tariffs are difficult to avoid, and tariffs are much larger.
Trump and his believers said tariffs won’t cause price hikes and tariffs are paid by China, Mexico, and Canada, etc.
One of us was right. And it wasn’t Trump and the economic illiterates who believe every fool thing he says.
After Trump, Congressional Republicans need to spend 60 yrs out of power to learn their lesson that fascism is bad. Same as the last time they thought it was a good idea.
Members of the Republican Jewish Coalition have been some of the largest donors to Republican candidates in recent years. Simple solutions don’t always work either.
Trump: Typical bully, punch him in the face & he runs away crying.
After today’s electronics cave, what’s next? Auto’s? Steel? Aluminum?
How many times today are we going to hear “Art of the Deal” from his lackeys?
Hahahaha!
Trump caves again.
No tariffs on smartphones , computers or computer chips.
What a clown show!
He truly is a coward. Afraid of those scary mid-term voters!
Does Trump even respect election results? I fear he has a work around for any unfavorable election outcome.
That’s no tariffs on $100 billion of Chinese imports.
.
Trump just keeps backing down on his own. Why would Xi ever bother to call and negotiate.
Next, perhaps, will be another pause on auto tariffs
It seems to come down to a few basic questions.
Perhaps someone on this blog can give an honest, unbiased answer to these questions.
Why would this country allow other countries to impose higher tariffs on our products than we impose on their products?
Especially when considering this: China, India and virtually every other second and third world manufacturing exporter have few if any environmental protection laws, labor safety laws, permit child labor in dangerous working conditions, etc.
After all, we breathe the same air and have to exist on the same planet as those countries.
Also, the trade rules that allowed China to be a member of the WTO have been violated by China for decades and still they enjoy that status which gives them preferential treatment in trading with the US and Europe.
And how long can America and the EU countries continue to hemorrhage
manufacturing jobs before the resulting trade deficits bankrupt these nations?
Actually, we and the EU nations are already insolvent.
It’s just that money printing is allowing the facade to continue albeit with inflation ripping the low and middle class standard of living to shreds..
So, please, what should be done?
Ending an addiction to cheap and toxic labor practices is painful but it seems that it is necessary or this country will continue down the path to financial and societal destruction.
Frankly, I don’t give an f*(k what other countries do regarding pollution, child labor, etc. US sovereignty extends to the border. NOT the entire world. There is no end to it if we go down that route. Imagine a democrap president charging tariffs because kids cant change gender at will?
The tariff model should be ‘tit-for-tat’, otherwise, free trade. If a country charges a tariff in any US product, all of their exports are taxed at the same rate. Let each country take advantage of its natural strengths.
The US is rebuilt by non-punitive means–investing in infrastructure and education would be a great start
You just made my point regarding tariffs..
But, but, but I thought democrats cared about the environment and ‘the children’…
“Why would this country allow other countries to impose higher tariffs on our products than we impose on their products?”
How about some examples? See if you can find some.
Here’s one. Japan has zero tariffs on imported cars and trucks.
The US has had 25% tariffs on imported trucks since 1965.
And 2.5% tariffs on imported cars. Recently raised to 25% as well.
So shouldn’t we remove all our tariffs on vehicles?
Do your homework.
Lol! That’s all you got? How about you prove me wrong.
Let’s start with the 25% tariff that the US has had on imported trucks since the mid 1960s. It is still in effect today.
Try looking it up.
The right hand steering wheels don’t help.
“Why would this country allow other countries to impose higher tariffs on our products than we impose on their products?”
Why would this country allow other countries to put more obstacles in their harbors than yours?
So are you going to go without air conditioning this summer to “protect the environment”.
Trump just reduced the tariffs on smart phones and computers to zero? If China is smart they will reduce the tariffs on import’s to 50% and put and export duty on computers and cell phones of 50%.
Maybe. Maybe not. Apple was already moving some production to India in anticipation of this. If China put an export tax on smartphones that would just encourage Apple to move even more production to India.
Waiting with baited breath for the histrionic: “Trump Tariffs to Increase Toilet Paper Prices” post
Everyone, butt Politicians, wipe their butts. BUTT BUTT!
That is why there is a stench in Sessions of Congress. Just one more thing that Politicians do, other than lie, cheat and steal.
They’re DIRTY in all respects.
OH, my GOD, I am on fire today.
It appears you are talking through your butt butt.
We make 90% of our own toilet paper, so it shouldn’t be a problem. We only import 10%.
However we do import:
50% of our aluminum
50% of our nickel
50% of our copper
99% of our uranium
25% of our steel
30% of our lumber
30% of the oil used in our refineries
90% of our potash
Here’s a good idea. Let’s put tariffs on all this stuff that American companies need to import, so we raise their costs and make them less competitive. Brilliant!
But where do the raw materials for making toilet paper come from? I would guess Canada. How about the raw materials for kleenex?
Good point. Each year, we import 2 million tons of Kraft pulp from Canada, which is needed to make toilet paper soft, yet strong.
We also import another 0.2 mt of Eucalyptus pulp from Brazil each year. It’s even better than Kraft pulp, but more expensive.
We could stop imports of these pulps and use only US pulp, but the factories would have to be reconfigured to do so, and the toilet paper would no longer be soft or strong.
The US need to start recycling its toilet paper, it would reduce imports and really improve the bottom line.
Up rating for humor!
Hmm not bad. Around 1900 in the old West cities, you could pay a dime for a fresh water bath or pay a nickel for a second use bath.
Paper towels are the ‘canary.’
always anchored my life with half gold. now it’s 90percent since trump took office.
Gold price at around 2650 to yesterday’s high of 3239… 90%?
It’s math.
And math can be difficult for some..
nothing guarantees that other citizens of other countries would buy any US product. They probably hate us enough to buy their own products .You cannot say that about US consumers. They have been spoiled by exported inflation and pollution and lower prices from China. Now that’s donzo
Yes. Just look at what’s happening in Canada. Most Canadians want to boycott US products and US travel. They are so upset with Trump that they will elect a new Liberal government in Canada because that is the only party that is targeting Trump’s bullying during the election campaign. The Conservatives had a 27 point lead in the polls a few months ago and now they trail by 7 points. Such is the effect that Trump is having on our former friend and ally.
unbelievable. i have done lots of business in canada past decade. family from there, too. it is almost like a nightmare to think that trump single handily made them hate our country. i also have italian passport and it’s wild to see europeans now despise us. i do think most probably just feel sorry for us for our dumbest elements electing trump. but not sure about that. it’s like people viewing folks from china or hungary or brazil and know they are not their leaders.
It’s the bullying, the insults, the name calling and the lies. And it’s constant.
We hear them and realize that is how Trump operates. Maybe we are used to it.
However when Canadians see Trump calling their Prime Minister “Governor” of the 51st state and complaining that Canada cheats and rips off America and takes advantage of Americans; they get pissed off. And even when he tries to sound nice, he still pisses them off.
“I love Canada and Canadians, but they have NOTHING that we need. We don’t need their oil or lumber or aluminum or any of the other things they send us. And they stole our auto industry. I’m going to ruin their auto industry and take all those plants back.”
Yep. That goes over real well. Then he is surprised when they get upset.
Papa, I am a lot closer to Canadians, likely, than you are. One of our best friends from Vancouver, has a friend that called me a name in mixed company and lit up on her.
It was then that I revealed to all of them that they are SPOILED BRATS who depend on American TOO much for their livelihoods.
The biggest lies are related to their health care system. THAT is a mess! Many of our Canadian friends come to America to get IMPORTANT things done medically.
So, do not get TOO wrapped up in Canadian attitudes towards us. They bullshit us, too!
Lol!
“ It was then that I revealed to all of them that they are SPOILED BRATS who depend on American TOO much for their livelihoods.”
You smooth talker. Taking a page from Trump’s playbook. You will win Canadians over with your insults and belittling!
There are plenty of others on this site who keep belittling Canadians as well.
We will never mend our relationship with Canadians if we keep doing that.
Which is why the Liberals will win the Canadian election. A 34 point swing in the polls because they are standing up to our insults.
Wah Wah Wah
How to win friends and influence people. D Trump 9 1/2 yrs old.
80 years of goodwill blown in 3 months.
‘Im in Canada. Everyone I know has a strong burning hatred of Amercia now, except in the West, where they are the kind of fools who would vote for Trump and support him unconditionally. And I am a conservative, I would have voted for Trump if I lived in the USA, and regretted that vote when I saw the clown car results.
Your President is a uniter, he has united everyone to hate you. This applies all around the world, I have been reading medias from all over, and it’s just like Canada, all over. Good Work, Trump.
So if you expect other countries to roll over for America now, you can re-think that thesais. They will take a big hit to not co-operate with the USA now, because you have pissed them off that much.
The friendship between our two countries has developed over a century. It only took Trump a few weeks to destroy it.
Prime Minister Carney says “the old relationship is over”. And he will win the election because of it.
When the Canadian election was called, I mentioned here that it would be a contest to see which candidate would best respond to Trump. I am surprised that only one party is taking advantage and running that message.
Apparently, the Conservatives can’t do this because it would alienate a good chunk of their own supporters, who are MAGA folks. When they show up at Conservative rallies with MAGA hats they are asked to remove them as that doesn’t look good on Canadian television during the campaign .
Uhh sorry, it’s (Communist behavior) been coming for awhile.
Examples:
1) A friend with a 12 year old misdemeanor traffic offense was turned back from the Commu-nadian border until he could provide documents proving that the 12 year old case had been adjudicated.
2) My wife and I were turned back at the border unless we disposed of our can of bear spray which we had brought with us for our hiking to protect against bear encounters.
We turned around and toured the Washington/Oregon coast instead..
It was awesome!
Fu@k ’em.
Attaboy. Keep up the insults on Canadians. It will be good for us all in the long run.
Be honest: you have been a condescending American hater all of your life. TRUMP just deepened it.
Canadians look down upon Americans. I have been visiting there since 1976. We have no fewer than 70 great friends there, including those I play music with.
Over the years, I have put up with insults that would have driven many away!
It’s just envy.
And, we Americans are honored by their fealty : )
Buddy, the whole world is starting to look down on you, wake up.
You banged on the other day about your frequent trips to Europe in business class, tell you what don’t bother coming any more, we don’t want your money or your Trumpcentric BS
OK, I have a solution; Commu-nadians can stay North of the US/Can border.
Americans will stay South of the border.
: )
That’s what a lot of Canadians are already doing. And the more folks like you keep insulting them, the less likely they will be to cross the border.
Though I am not sure if many Americans are reciprocating.
It will be interesting to see the cross border stats by the end of the year.
Now, Papa, my Mom married a Canadian. GENERALLY, they are “OK” with Americans but every so often the disdain and CONDESCENDING ATTITUDES got quite tiring. Europeans have the same attitudes towards Americans. I live there part time.
It is as if we are seen as lunatics, lacking culture and awareness. Some of these two cultures SEETHE with amazing disdain for us.
My Mom’s Husband went ON AND ON AND ON about Pickering’s Amazing Nuclear Power plant.
His kids, my step brothers and sisters, treated us like we were nincompoops all the time. I was in my late 30’s when she married that prick. He went on to rip her entire estate away from her in Canada when she died.
After that I took all Canadians as AMERICAN HATERS. We are losing nothing here.
“ After that I took all Canadians as AMERICAN HATERS. We are losing nothing here.”
You are on a roll here. I’m not sure how many Canadian readers Mish has, but I’m pretty sure you are simply creating a self-fulfilling prophecy. Keep pissing them off, till they all hate us. Good job!
How to win friends and influence people.
Have you considered expatriating?
We would help you pack : )
Freeloaders tend to do that..
Someone’s living rent-free in someone’s psyche : )
Poopoo dave and others:
We have a WINNER!
The spending bill announced. So much for freeeeeeeeeedumb caucus. Not a dime will be cut from anything. DOGE won’t save a dime. Debt and spending to the moon. Plus recession if not outright depression. Plus isolate the world to hate us. What could go wrong. And we’ll bomb the hell out of the world even more than we have been under the uniparty of nihilist asshole voters past 50 years
Yep. It’s a hot mess.
Buy a Ford most vehicles discounted at employee pricing. Wholesale pricing +1-2% on many models (Not All),
During the next 90 days, Trump thinks that he will have bullied most countries to come to negotiate some kind of trade deal with the US. And some of them will.
However, those countries will also be negotiating with each other during that time in order to reduce their dependence on the US. Because they can trust the agreements that they sign with each other, while they can no longer trust any agreement they sign with the US.
What will be particularly troubling for the US will be if many of those countries decide to make deals with China at the same time. And China is working hard to make that happen, while they ignore the US.
We live in interesting times.
“What will be particularly troubling for the US will be if many of those countries decide to make deals with China at the same time. And China is working hard to make that happen, while they ignore the US.”
That’s already happened, Trump will simply say, “anyone doing business with China is subject to 100% tariffs” and renege on any trade deal he has already signed. He recently did that with Venezuela oil, next it will be China goods.
Wait and watch and it’s very likely to happen. The world will be on economic pause until trump is booted from office.
I suspect that would only succeed in isolating the US from world trade, not China. Which Trump will say was his goal all along.
No, the economic pause will be with trade with America, the ROTW will trade amongst themselves, happily, outside the US $ system, and just ignore the USA as much as they can.
Trump will collect far less in tariffs than he imagines, as trade into America will decline hugely, except those factories to replace those goods have not been built yet, and probably won’t be built now, as who wants to deal with the clown car show tha is America, where policies change twice a day, every day. By the time you gat a factory built, you may lose the whole investment at the whim of Trump. Or you will go to another country, where they are rational. Which do you think they will choose, rationally?
I’M sure Trump team will just do as they and Biden did during covid years. drop free computer digits into everyone’s accounts to make us all feel great. how about a cool 10k first time, 100k the second time and one million after that. it’s just a computer cursor away. i think the doge kids can handle that. we’ll all be so rich.
the state of CA is my bet to be the first state to issue their own computer currency. redeemable at all CA stores HQ there. Apple to weed shops………..
PT Barnum grossly underestimated. By the last count last November, the total ticks at over 77 million.
Biden got 81 MILLION!
It’s a confederacy of 158 million dunces!
ok Trump its in your court:
The American Conservative: We know why Americans voted to reelect Donald Trump.
After Biden-flation, they wanted lower prices. After Biden-borders, they wanted fewer immigrants. After Biden-wars, they wanted foreign-policy restraint.
That’s what the voters wanted, but they may get just the opposite: sky-high prices, molasses-paced deportations, and avoidable wars. https://www.theamericanconservative.com/trump-at-the-crossroads/
Here’s a great question for you to research and answer: Are the tariffs quoted FROM other countries by Trump accurate, i.e. does Japan have a 46% tariff on US exports?
Of course not. Those numbers were pulled out of Trump’s ass.
There are many sources to get average trade weighted tariff rates for the countries in the world. Here is one example from the World Bank. You can look up others. They are all slightly different. But very close to each other.
https://data.worldbank.org/indicator/TM.TAX.MRCH.WM.AR.ZS
Japan has an average trade weighted tariff rate of 1.4%. The US is 1.5%.
Very few countries in the world have average tariffs of more than 5%.
And most tariffs target certain products; like beef, or cars. They don’t target particular countries, like Trump suggests.
Actually the asswipes have a formula
It’s consistent but with a minimum 10%
https://mishtalk.com/economics/whats-the-white-house-formula-for-calculating-the-huge-tariffs/
Lol! And the tariff formula even applies to some places with no inhabitants and no trade.
Those penguins called up trump and said they are ready to make a deal. They negotiate tough but it’s a win for Trump.
The penguins will never sign an agreement with someone who will break his signed agreements.
Well, that’s the beauty of formulas. They apply universally.
Sort of off topic…
Seems as though the “cleanest” shirt in the pile of “dirty” laundry has become much, much more soiled…
At least it’s still the cleanest one?!!!
Which shirt is the second cleanest?
China?
Germany?
Japan?
India?
California?
Haha
Greenland, of course.
India
Macdonald Islands lol
Virgin Islands.
Great post Mish!
Steel and aluminum tariffs since March 12.
Auto tariffs since April 3.
As a result, most of the North American auto and parts industry will be shut down during the remainder of this month.
Meanwhile, Trump is still begging for China to call. And they won’t. I love it!
The Chinese were told (again) that Xi should request a call with Trump.
Trump’s team has been telling China that it is up to Xi to call Trump for two months now.
Trump himself has said “China wants to make a deal. They just don’t know how quite to go about it.”
Instead, China raised tariffs on US goods again to 125%. Hahahaha!
What a show!
Apparently, tariffs on auto parts were delayed another month till May 3. Which might help auto companies keep production going for a little longer.
Used car market just got a big boost. Glad I kept my spare vehicles
Treasury market had some wild swings. PPT looks like it is back
FED intervention might be future Mish subject.
Trump’s Great Tariff Stupidity (GTS) is tearing the economy apart. The Michigan consumer confidence indicator for April has crashed to 50.8, the lowest reading recorded outside the pandemic. Add to Trump’s GTS the continuation of a reckless fiscal policy, and we increasingly look like the typical Latin American economy in the 1970s given that foreigners own large chunks of the US equity and bond markets. If Trump’s GTS can not be stopped, are we going to talk about the US imposing capital controls?
I did some shopping this week didn’t notice anything different.
I did. Eggs were more expensive.
That is because most businesses stocked up inventory before tariff day. The prices are going to hit hard in the next 30-60 days as pre-tariff inventory runs out.
I did, Ford is doing Employee Pricing…I think the employees pay less, right? LOL MOAR inflation
GM just announced shutdown of their ingersol plant in canada. I think we are going to see a lot more lines shut down. no sense in producing vehicles you cant sell profitably.
It’s working. Trump will bring Canada to their knees until they are ready to cut a deal.
Lol! The US auto industry will be shut down by the end of April.
Wow. In 19 days. Reminds me of Algore’s predictions on climate change.
you must be shorting the world.
Yep. Shut down in 19 days. Unless Trump caves on his auto tariffs. Again.
The only saving grace was that Trump did delay the tariff on auto parts till May 3. That might help a bit.
Or just blame the computers to delay tariff collection.
A glitch has reportedly delayed the collection of tariffs by U.S. Customs.
An entry code used to exempt freight from tariffs is not working, the issue is being reviewed, and shippers are being told to delay filing their financial papers until the issue is resolved, CNBC reported Friday (April 11), citing an alert from U.S. Customs and Border Protection.
Normally, all the papers are filed at once and shippers pay when their cargo is released by Customs, according to the report.
The code that is not working is meant to be used for freight that is exempt from new tariffs because it is from one of the nations for which the tariffs have been paused or, if it’s from China, because it was already on the water and bound for the U.S. when the tariffs were imposed, per the report.
In the meantime, until the glitch is resolved, U.S. Customs is not collecting tariffs, the report said.
https://www.pymnts.com/shipping/2025/us-customs-delays-tariff-collection-until-glitch-is-resolved/
And with the tons of GM, Ford & Dodge, trucks & SUVs on dealer lots, the companies, not necessarily the workers, probably won’t mind.
By shut down, do you mean every hourly wage worker is laid off?
Just checking what you mean by “shut down”.
Yep. Once auto parts are tariffed, in addition to autos, I expect “ most” auto plants in North America to be shut down within two weeks of that happening. Whether workers are laid off or not is a moot point. But production will grind to a halt once parts are also tariffed. Certainly a few plants might stay open another week or two, but most will be shut down within two weeks of auto parts tariffs.
My first statement was made before discovering that auto parts tariffs were delayed till May 3.
Hope that helps.
It will be interesting to see Trump’s reaction. Auto layoffs after front page news…
The auto makers keep pleading with him to not do this. So he paused auto tariffs for a month till April 3. And he has now paused auto parts tariffs till May 3. Which will allow auto makers to keep plants open a little longer. But once the parts are tariffed, plants will shut down quickly.
He will say that it’s a little pain now for long term gain. And all his supporters will believe him.
Throw in some masks, plexiglass and thermometers and it will feel like Covidcon again.
No one is going to bow to America in Canada now, any government that tries to do that will be swinging from a lampost.
Fortunately for me, I only drive old beat up Toyotas bought cheap for cash. They run fine. I keep them until they melt into a puddle of rust.
Copy that sir.
No new car for Mish though…LOL
So gratifying to know that Trump’s buddies made millions on the daily churn on wall street. Makes all of this so much easier to bear.
Really? How do you know?
Probably very good for Truth Social though considering a Truth post telling the world to buy ahead of the announcement. Lots of people who missed the rally will get Truth so they don’t miss the next buy announcement.
How soon until the price increases are blamed on “corporate greed”?
The only thing dems like to blame more than corporate greed is Trump. In other words, you won’t hear a peep about corporate greed.
Price controls would not surprise me…
Forget this fundamental “stuff.” One of the fed heads today said the fed is standing by to save the market. The market immediately shot up following these comments.
This is the most manipulated equity market in my lifetime and no one cares as long as stock prices rise (at least for now).
The invisible hand of the USTreasury trading desk is forcing oil prices down to punish Putin. He refused a cease fire and The Donald promised fire and brimstone if he didn’t. The cost to pump Russian oil is $50/bbl. Russia cannot finance pumping at a loss. Shut in the wells and they freeze shut forever. Putin has no qualms about exterminating his population. He’ll have no qualms about exterminating the Russian economy.
Lol! There are some consequences “if” that is true.
The breakeven cost for US shale producers to drill new wells is between $60 and $70. US drilling is about to collapse if prices stay below $60.
Yes, but shale drilling can be financed later. Prudent drillers can exit gracefully. Russia cannot finance until the war ends. Not without foreign technology, Imagine Russia without oil is a lot like imagine whirled peas.
The Russian oil industry is a cash cow for the government. They have generated $450 billion for the government since the war began. They do not need financing. WTF are you talking about?
If and when Russia pumps oil at a loss then the loss must be financed. Russia cannot borrow. Russia is broke. Shutting the wells would be economic suicide but Putin is perfectly capable of economic suicide.
The average cost to produce oil from existing wells in Russia is $15 per barrel. The breakeven cost for new wells is $40 which includes the taxes paid to the government.
You have no idea what you are talking about. You just make sh*t up.
This guy always posts nonsense about Russia, he must be Ukrainian
Not as badly as Germany, whose economy Russia outgrew.
Most sites show Germany as the #3 economy in the world. Russia is much further down the list.
One example:
https://www.worldometers.info/gdp/gdp-by-country/
By PPP.
Like every other one of your idiotic posts about Russia, you are wrong
Russia has one of the lowest costs of oil production anywhere, $40 or close to it, so when every oil well in the USA has shut down, they’ll still be pumping and making money.
And they dont need foreign tech either, there is no great mystery to oil, its old tech
these days.
Stop watching CNN
Trump’s deadline to bomb Iran for Netanyahu is in 60 days. Enjoy low oil prices while they last.
I saw a C5A fly out last night.