It’s price controls by mandate. Dust off those WIN buttons. 
It’s one bad policy decision after another says the Wall Street Journal in Trump to Auto CEOs: No Price Increases.
One bad policy decision inevitably leads to another to compensate for the damage, and that’s already true of President Trump’s new 25% tariffs on auto imports. The Journal’s news pages reported late Thursday that Mr. Trump threatened auto executives on a call this month not to raise prices if he went ahead with his tariffs.
At least he recognizes in private that his tariffs aren’t cost-free for business or consumers, which wasn’t previously clear. But like his Democratic predecessors, he apparently thinks he can browbeat CEOs to cover up for them.
Readers may recall how Joe Biden demanded that oil and gas companies reduce gasoline prices even as his policies discouraged investment in new production that could lead to more supply and lower prices. His regulators then targeted oil and gas executives, such as Pioneer Natural Resources founder Scott Sheffield, who criticized his anti-fossil fuel policies.
During last year’s campaign, Kamala Harris proposed letting the Federal Trade Commission dun food companies that raise prices too much. Mr. Trump responded by noting that “after causing catastrophic inflation, Comrade Kamala announced that she wants to institute socialist price controls.”
Well, now Mr. Trump seems to be imitating Comrade Kamala to prevent catastrophic price increases from his auto tariffs. It’s hard to predict the magnitude of the price impact, though Ford Motor CEO Jim Farley warned last month that “long term, a 25% tariff across the Mexico and Canada borders would blow a hole in the US industry that we’ve never seen.”
Lower-priced sedans, which are mostly imported from Mexico, South Korea and Japan, will be hit hardest by the tariffs. But auto makers may spread the tariff costs across other vehicles, including popular pick-ups and SUVs made in the U.S. If higher prices reduce demand, the companies may lay off workers. Will Mr. Trump threaten those that do?
Businesses were optimistic when Mr. Trump returned to the Oval Office because they thought he understood how markets work. They may have been mistaken.
Get Out the WIN Buttons
Anyone who though Trump understood anything about markets or trade was badly mistaken.
It will be amazing to watch the hypocrites excuse these price controls while blasting Harris for the same thing.
US Debt Will Grow to a Staggering 156 Percent of GDP by 2055
On March 27, 2025 I commented US Debt Will Grow to a Staggering 156 Percent of GDP by 2055
If Congress extends the TCJA tax cuts with no offsetting savings, the deficits will surge.
On March 29, 2025 I noted Fed Chair Jerome Powell Revives the Words “Transitory Inflation”
Please note Powell revived from the dead, the word “Transitory”.
Are Powell and Trump on the same? If so, are price controls and massive deficits transitory to Trumpian Nirvana?
Oh looky looky Chicago PMI exceeds expectations.
Appears US manufacturers are not reading Mish as to what they think is coming by a Made in America policy.
Gee what a shame, people in Chicago are going to have to suck it up and deal with more Job opportunities.
To begin with tariffs are straight from Communism 101, protecting against competition. Add proce controls on top of it, and the Comrade Trump label fits perfectly.
Alright, just breathe.
– It’s price controls by mandate. Dust off those WIN buttons.
> That’s disingenuous.
– One bad policy decision inevitably leads to another to compensate for the damage, and that’s already true of President Trump’s new 25% tariffs on auto imports. The Journal’s news pages reported late Thursday that Mr. Trump threatened auto executives on a call this month not to raise prices if he went ahead with his tariffs.
> No policy decision, but an affirmation, way back when, that we (Manufacturers, Tech., Copts and more would need to stay flat, or take a small hit. Part of everyone being involved. Everyone with “Skin In It” tends to make people pay more attention. We seem to already have it in abundance already, so time to pile on, with the next Phase!!
>> So time for Mr. Trump to call on those same folks, and expect them to produce, as we have for them. A lot at stake here, and they need to help out. If not, then things will need to change, and quickly I might add. These are simply facts for those aware, and confusion for those otherwise.
– Businesses were optimistic when Mr. Trump returned to the Oval Office because they (NEW) thought he understood how markets work. They (Were Correct) may have been mistaken.
> All’s good, albeit Quite different, but very good!
LOL:
– US Debt Will Grow to a Staggering 156 Percent of GDP by 2055
> I see the “Crystal Ball Fanatics” are at it again. I heard by 2055, we will also have already been to Mars, and Venus, and plans are in place for Jupiter. We surpassed the 15 or so EV Taxpayers Charging Stations, and are over 20?
>> I will Personally Add My Take:
1. Greenland Bought by 2055 A Lock!
2. Ukraine Peace Plan in place by 2055 A Lock!
3. The EU Dissolved in its entirety by 2055 A Lock!
4. Nuclear becomes the fastest growing form of Energy by 2055 A Lock!
5. School Choice by 2055 A Lock!
6. End of BRC in the U.S. by 2055 A Lock!
Probably ALL before then…
You’re giving them plenty of time! How many switcheroos (Party to Party) will there be 30 years?
I agree David, as the statement was ridiculous. I was doing the same to make the point. I do think all of those things will occur, but timing is anybody’s guess. If it does, it will obviously be under Trumps watch…
“I agree David, as the statement was ridiculous. I was doing the same to make the point. I do think all of those things will occur, but timing is anybody’s guess.”
I would disagree that the statement is ridiculous as it shows the CBO’s baseline projections. What I believe is ridiculous is that the CBO no longer publishes its alternative more realistic projections. It stopped doing that in 2009. Mish might also want to start stating the CBO’s alternative more realistic projection of 350% by 2055. Obviously Its not likely to hit that as $hit will hit the fan well before.
Check out the CBO’s alternative projections from the following links from 2009. They were pretty accurate only out by a year on trillion dollar deficits and 100 % debt/gdp
Article 07-Burman.indd
” By 2018, annual deficits will exceed $1 trillion.”
” Under that arguably more realistic baseline, the debt explodes. As shown in Figure 2, by 2023, it reaches 100 percent of GDP and, by 2038, 200 percent. ”
” VI. AVOIDING CATASTROPHIC BUDGET FAILURE The good news is that the risk of catastrophic budget failure is probably still years away.”
The bas news is that this report was completed in 2010 and catastropic budget failure is now coming over the horizon.
CBO Projects Public Debt to GDP Ratio of 766.9%!
The 101 economics of this is pretty simple. After the tariff is in place, it may take some time for all the adjustments to occur, for example some people may continue to prefer the more costly imported cars, but if the market is competitive, US car prices will increase by close to 25 percent in the new equilibrium. But the damage to the US consumer will be beyond the 25 percent additional cost of cars; the consumer will now also get to “enjoy” lower-quality cars at the higher price.
Many people will switch to used Cars which will be a HOT market.
Yes…good times🤪
It looks like some CEOs are complying with the request 🙂
https://youtu.be/QWwuyejJMAc
Mish, being a blogger about Trump, his intentions and even his actual words must be getting tougher and tougher every day.
This news has Trump saying he never actually said that and doesn’t care what happens to prices Americans pay for cars (inflation):
https://www.reuters.com/world/us/trump-tells-nbc-he-couldnt-care-less-if-car-makers-hike-prices-due-tariffs-2025-03-30/
It must be a day ending in “Y” because Trump always changes his tune on days ending in “Y”
Lol! Trump says many things and then later denies saying them. Even when they are from live recordings or official transcripts.
Every step we take away from free market capitalism is two steps toward communism, socialism or fascism. I’m waiting to see the comments defending this pinko communist “central planning” strategy of the current administration, where is JayW?
I thought everyone outside of America would be paying tariffs and we’d all be richer and tax free so why is there a need to demand prices not rise?
Once again the repubs paint themselves into a corner with a logical paradox.
“It’s Trump turtles all the way down and inflation all the way up!”
You must be some kinda communist-socialist-transvestite using big words like “logical paradox”
Phil, what you’re experiencing is called extreme cognitive dissonance. On the one hand you believe trump to be your messiah and save you yet on the other hand you know his actions will destroy you. You are now in an awkward position of defending a central planning communist and that’s probably not who you are is it?
You can’t reconcile the differences so you lash out at others. In this instance, it’s me but I’m sure everyone around you such as your family despises being around you.
There is nothing else you can do but seek help from a mental health professional. Sadly, trump and his new crackhead at department of health are gutting all that so you’re kinda on your own.
If the radical dems can do it to Ilan they can destroy the top 1%. U might be trapped in Biden’s sinkhole
Biden had a stable economy, if that’s a sinkhole, count me in. I’ll take that over The Trumpocolypse™ where the whole system crashes.
It was a “stable economy” because your favorite TV NEWS SHOWS, including MSNBC, said so. So, since I likely have a different definition of ACTUAL STABILITY please offer us some reference points for my reading pleasure.
Remember, they say “stability” when NBC SAYS that they can say “STABILITY.”
You are smoking the good little child weed and buying into the Narratives.
—————————————————————-
EVERYTHING that you see on MSM is force-fed Propaganda.
And, I am around the two extreme views in different circles, including Europeans who are numbskull Liberals…and we have two 85 year old TRUMPCO believers right here in town (Family Members who drink the TrumpCO Koolaid).
Employment was stable, stock market was booming, inflation was coming down, everyone but MAGA was happy because of trans people.
Being obtuse is a choice and you’ve taken it.
They just don’t really see who they are. A large percentage of the right are attracted to totalitarianism. They love an authority they think can harm a neighbor they don’t like or someone who’s skin color they don’t like. They don’t care if they themselves are hurt in the process. They think they are warriors for the cause. Many folks with low self esteem love the idea of someone beating up someone they don’t like.
Corrected here for you:
“They just don’t really see who they are. A large percentage of the right are attracted to totalitarianism.”
Corrected: “They just don’t really see who they are. A large percentage of the right AND LEFT are attracted to totalitarianism.”
Millions of nincompoop Americans are GLUED to every word that their PARTY utters. It is a sickness after a while because of the RUT that they get stuck into.
Nope
I cannot imagine the CEO’s of these public companies will comply with the “wishes” of King donald.
I have no doubt Trump would use every lever to deny federal procurement contracts to automakers who fail to bend to his edicts/”wishes”. That is, if he could remember this afternoon what seemed so important to him this morning.
Newsweek had an article outlining which vehicles made in the USA had the highest US content and would be least affected by tariffs. Interesting: of the top 20, 9 were from Honda/Acura, 5 from Toyota/Lexus, 3 from Tesla, 1 Volkswagen, 1 Jeep, 1 Ram.
https://www.newsweek.com/trump-auto-tariffs-what-cars-are-affected-2051277
Trump can huff and puff all he wants. All car prices will be going up as a result of tariffs. Winning!
Of course. They make their cars in the US, employ US workers and pay US taxes. That is sort of what we want.
Nope. That is what Trump wants.
What businesses want is to lower their production costs in order to gain a competitive advantage.
But that is not what is going to happen. Instead, US manufacturers will face higher costs and they will become less competitive.
China’s BYD seems to be stealing a march on Tesla abroad.
BYD is quickly becoming the market leader in auto production. They continue to lower their costs, and improve their competitive position. While US manufacturers will be moving in the opposite direction.
Correct. Eventually they will dominate the 3rd world markets.
But Europe, NA, Australia etc will probably keep them out or tariff them high enough that they have less competitive advantage over local products. But you already know this.
The question becomes what happens when we directly steal their tech as Chinese companies have done to ours for decades.
Their advantages are more than just proprietary tech (such as their new 5 minute charging tech).
Their biggest advantage is the entire Chinese internal supply system, built from the ground up over the last 2 decades. This is what gives them their biggest competitive cost advantage. And it isn’t something that we can easily duplicate in the US.
In fact, with Trump’s tariff wars, we will be moving to much higher costs over the next few years, which will only increase the competitive disparity.
We are only falling further behind.
Yes the Chinese steal your tech and then improve upon and build it cheaper.
That would work for only so long. Eventually China’s BYD economies of scale would be so large that they will be the only game in town the way it’s Airbus or Boeing or the way Walmart decimated every small business in every small town.
After I leave here and if I need to buy a car where I land, it will likely be a BYD car.
These guys drove some BYD models and they were all blown away.
https://www.youtube.com/watch?v=3QOa__xaCPs
The Chinese car makers operate in a dog-eat-dog capitalist environment, the US ones operate on command from above.
Oh, the irony.
When I say “we” I mean we as citizens and not as a business owner. (yes I have been a business owner). As a citizen I worry about the health of the country as a whole. As a business owner I am worried only about the health of my business. As a citizen I laud Trump’s efforts to bring back manufacturing to the US over my narrow one-person concentric view. Some people look at it that way and some people take the opposite view.
As for predictions let wait and see. Any Alberta stock tips I asked you for in the last post? I would appreciate them.
Sure. I have been favoring natural gas producers in the last 6 months. Tourmaline, Arc, Peyto, Canadian Natural are my favorites.
Thanks
You’re welcome.
Or Manufacturer’s will change things up, in all ways needed, to become competitive. Some won’t, and will go away, but most will do what it takes. This is how it works, if you wish to stay in business. Times change, businesses adapt, or they don’t. The strong will survive, partly on the backs of the weak that can’t afford to for various reasons… it’s reality.
American robots will be seeing wage gains when they build these new assembly lines! Hooray for the robots. Meanwhile the human beings will be left with increasing sticker prices.
Corporations seek slave labor or low wage countries. The deal they made was low price goods for Americans and low wage labor costs for companies. Now we will have high cost consumer goods and low wages. Good deal I guess🤔
Where do the profits go?
The worst part won’t be auto prices rising because that’s a one time cost, it will the be the rise of insurance, maintenance and related expenses that are ongoing for the life of the vehicle.
#1 is Tesla but who wants a nazi-mobile these days?
Who’s laughing at not having a vehicle now you folks headed to the poor house?
A swastikar
Why go for a fake Nazi? Go for the real ones. Buy German!
Maybe I should call it the apartheid-mobile to correlate more with the natural birth place of the main guy doing nazi salutes. Was there an apartheid salute?
Maybe this is Trump’s green program. Save the environment by making cars so expensive only the rich can drive. Everyone else takes the bus or walks. No more traffic jams and breathable air. People are walking more which also helps Medicaid.
He truly is a stable genius.r
Truly funny! A genius I tells ya!
The Tariff Man Is Coming for America’s EntrepreneursOne small business has paid nearly $30,000 in the past two months. Tariffs Aren’t Reparations – The Atlantic (archive.ph)
Thanks for posting that link. Great article about every day Americans being victimized by trump’s tariff scheme. It also shows what will happen later this week and trump doesn’t even care.
Trump thinks his genius can remake the world, by his just banging as hard and loudly as possible on various discordant things. The most important thing though, is his hand pulling those levers, his name on the headline, his making people bend the knee, his trophy- everything. He wants to be as big as Andrew Jackson, Lincoln, TR and FDR, which is the real name of the game here. It is fame. He is swinging for the fences, and it might conceivably work, but it seems high-stakes and riverboat gambling to me, the way he is doing it. He gets that a half-hearted play won’t really change anything, and we are adrift now, thanks to his calling attention to it. But he (we) could lose everything built over a couple centuries, or he may get his name in lights. The world after all that looks a lot to me like the 1890’s or 1930’s, though, at best.
If automakers ignore Trump, will there be consequences? If not, who cares? Trump can “browbeat” all he wants – just like Biden did to no effect. It’s theater. Manufacturers will price however they want to. Trump is being as ridiculous as Biden and Harris. And that’s pretty ridiculous.
Why would ‘Murican car companies raise prices when the nasty Canadians will be paying the tariffs ?
Cars and parts negotiated under the original USMCA agreement are excluded from the new tariffs. However cars and parts that are not at 75% North American origin are not covered by the USMCA agreement so the tariffs falls on them. 93% of Canada’s car and car parts exports to the US are already covered by the agreement and will not be affected. Of course that could change but for the moment Trump has not even hinted that he would change that. None of you here are poker players?
By the way. Carney is a poker player as is Trump.
Anyone that imports from Canada will pay the tariffs.
Look it up and come back.
What is it called when government forces private industry to follow their orders?
That is what corporate laws do. Governments set laws that tell companies what they can’t do or can do. I fail to see what you are getting at. Could you reword it please to be clearer?
Environmental laws do that. Fraud laws do that. Financial reporting, tax laws, even traffic laws.
I know the right hates hates hates regulations. I watched cnbc last week and so many of the trump supporting folks on there were gleeful about loosening regulations on banks. Positively giddy they were. I sat there staring at the screen and remembering the 2009 financial collapse. Regulations were put in place to keep them from doing that again. Americans can’t even remember the Covid crisis. This country has the attention span of a toddler. And the emotional intelligence of a demanding newborn.
There’s a quote by Benito Mussolini about it or something…
Where is your mea culpa on the 4th Circuit ruling on the Executive Branch having the authority to dismantle USAID?
I’ll be waiting.
My comment on USAID was that Trump would win some and lose some. He would only lose things explicitly funded by Congress.
And this case was decided by the wrong parties filing suit.
What I said
“The Good
Rooting out fraud and ridiculous unauthorized payments is good. Moreover, there is grounds to fire everyone who sent out checks without questioning a single one.
The Bad
Sorry DOGE, but a blanket cancellation of all payments is unconstitutional.
The Ugly
Elon Musk has no power to do anything but advise the President and make recommendations.
Also in the ugly category is the simple fact that many if not most of the payments are legitimate. By legitimate, I mean genuinely authorized by Congress, not that I think they are a good idea.”
Anything explicitly authorized will still happen.
So, correct me if I am wrong, but what you are saying is – US Aid can be dismantled, but the cost saving will be minimal, as the payments still have to be made – it will just be a different agency or name.
The intention may be noble, but the execution is poor. I think that’s what Mish has been saying. Elon’s “smash it and we’ll fix it” may be acceptable for private companies with defined networks and “closed form” analysis; its not working for sprawling, ill-defined and definitely not “closed form” systems. In many ways, he has taken the agencies that he is ‘dismantling’ down a grease filled chute, making climbing back up extremely hard if not impossible. And if rumors of his ‘refocusing’ on TSLA and Spacelink are accurate, he may be leaving the mess for others to clean up. There was a right (or at least better) way to work towards the goal; even a butcher knife would have been better than a chainsaw.
I predict the long term effect of his hatchet job will be increased expense and decreased efficiency in government.
Would you predict the same absent the hatchet job? 🙂
It was the constitutionally correct ruling. But anyone with an ounce of common sense already knew this. What these liberal judges are doing amounts to nothing more than stall tactics.
Of course, DOGE has no authority to do effect any of this. But anyone who thinks that renders them powerless is only fooling themselves. As I’ve said many times on this blog, and simply based on the left’s reactions to DOGE and Elon, DOGE is the single most effective weapon against the deep state. And it’s winning big time.