https://www.reuters.com/world/americas/trump-says-us-will-place-25-tariffs-goods-mexico-canada-2025-01-30/
Not sure how FoMoCo can sustain the tariffs, expect layoffs.
34 replies (most recent on top)
Wasn't the tariff about taxing external instead of internal? Replace the IRS?
Why would Trump then abandon the tariffs?
Canada didn't cave, what was announced today is the same thing proposed in December. Trump finally listened to the adults in the room about how damaging this trade war will be.
No, Trump caved with the stock market tanking when it opened this morning. He has put a 30 day hold on implementing the tariffs. I cannot comprehend the "everyone will buy American products" mindset. First, there would need to be American made products available without any components outside of USA. Second, they would need to be affordable. Most of the Trump garb and products he has promoted were made in Asia, not USA. He would impose tariffs on his own goods.
Mexico caved this morning and Canada caved later this afternoon. Trump is using the threat of tariffs as a stick in the negotiation process. Tariffs aren’t going to raise prices because these countries know that they have been caught. All of them will back off and give the US a better deal.
This is awesome! Bring back manufacturing to the US, or pay the Piper!
Ford management has been sc--wing the American worker for the last four years. It's good to see that they are going to pay a penalty for their move to LCCs!
That would be YOU.
How about instead of tariffs bring Call Center and Tech jobs back to America.
Plenty of good used Hondas and Toyotas for sale. What’s the problem ?
Formatting on last post is sc--wed up. Not by me
Some people are so clueless about how manufacturing in the company works. These engines and components that are made in Canada and Mexico
- 7L
- 0L
- 5L
- 8/7.3L
And this is only 3 ford plants.
Ford would be smart to do a 2 week shutdown to make a point.
- 7L Diesel.
There are no border issues from Canada into the US!!! There is zero justification for these tariffs from border issues.
Can we do basic economics 101?
Sure we can. After tariffs get implemented, all the products and raw materials coming into this country, that face a tariff, the importing company will have to pay it to the US government. Of course, when the final product is ready for selling, the final price will take the tariff into account. Possible results:
- The product's price would be the previous price + tariff. Less consumers will be paying for it. Less revenue for the selling company. Possibility for the local products to get more traction with the consumers, or manufacturing could move closer to America.
- The product's price would be less than the previous price + tariff. The selling company will try to absorb part of the sticker price shock, reducing the "greedflation" through the commerce chain, trying to avoid a revival of the local manufacturing.
For the consumer means higher prices (if they buy it), for the foreign companies means reduced demand for the product, more interest in finding savings and efficiencies, for the American companies means more chances of competing in an equal ground, more consumers interested in buying "American".
Now, if we are planning to impose tariffs, and reduce taxes, then many Americans will benefit from this, including the workers at FoMoCo. Tariffs are a "tax" that only gets charged to the people that buy. Income tax is a tax that everyone pays, no matter what they buy.
BTW, that 25% tariffs to our neighbors is meant to force their politicians to "play ball" with Trump regarding border safety, immigration, etc. We have NAFTA 2.0, so not many products are going to be slapped with those tariffs. Still, the idea behind seems to bring another negotiation among NA countries. I'll critique Trump's actions based on their results, not on the initial move.
'Can we do basic economics 101?'
can we do basic reality
canada and mexico can do very little without the US
we own them
if we say jump, they ask us how high
Can we do basic economics 101? Tariffs apply to incoming products which in turn equals higher prices for us. These countries will add the cost to said products to the companies in the US buying them. These companies raise prices to cover the tariffs. We end up paying more to cover the increase in cost. Us made products cannot fill the demand to be cost effective.
@hc+1jjx12754 How anyone could still believe in the Russian narrative is completely beyond me. That’s one mighty impenetrable bubble you got there.
I don’t care about the squealing from the north and south. Everybody has been treating the American taxpayer like a giant p—-y that they can stick their dirty fingers in as they please. No more.
Interesting way to bring the border countries to a negotiating moment. Who knows where this eventually goes. Could push stronger financial ties to China for both Canada and Mexico. Could drive better integration with Canada and Mexico too (although that depends on what happens next). Maybe we'll end up being one big happy economic zone. Then it's a short hop to the 52 state flag lol...
@cg+1jjx12754, The experience of Canadian softwood increasing 400% demonstrated that the US is unable to replace the demand. And in general, 25% will not be enough to inspire companies to patriate the goods production to home soil. Tariffs are bad for all, but mostly for the country applying them. It’s a consumption tax but Americans are too stupid to see it and will continue to brag about how little tax they pay compared to the socialist country up north and across the Atlantic.
Oh, if other countries are putting tariffs on American products, it's okay to retaliate? Yes it is, but Mexico and Canada did not do that. Remember NAFTA? Remember its successor, the United States Mexico Canada Agreement (USMCA), negotiated by one...wait for it...Donald J. Trump? There were no tariffs; this is not fighting back, this is a first strike!
Bring it on. They taxes our products so we tax their products. It will all work out just fine.
Clearly a few folks here don’t know how tariffs work! Typically and as done here, they are BAD, lead to increased costs for US consumers AND, retaliatory tariffs on exported US products and reduction in demand for US products. And, wait until our ally and friend Canada, whom he hit and hurt this time slaps tariffs on US goods. Won’t sell one car there.
25% tariffs on Canada and Mexico will shut down VO in 2 weeks. Parts cross the borders multiple times. Ford can't afford to eat that markup. It'll make our losses on EV's so far look tiny.
meet your bet and double down.. 100% on canada and 200% on mex
I was hoping for 50% on Canada and 100% on Mexico...
We cannot remain a service ( lol ) economy and continue to go down the drain as a country in so many ways.
c6+1jjx12754 I love how it is okay to slap tariffs when it benefits you but god help anyone when they do it for another reason than your benefit.
That's a possible outcome, but so is buying a $45 sheet from an American company instead... and it all stays here.
As Ford employees know, the market sets prices, not manufactureres.
Guess that $1m bribe, er, donation to Trump’s inauguration fund was worth it. /s
The fact that Trump thinks he needs and external revenue service to collect tariffs is more than enough proof that he and many others don’t understand how a tariff works, Americans pay the tariff, not the foreign country. Now, instead of paying $40 for a sheet of plywood where Canada gets The $40, you will pay $50 and $40 still goes to Canada but $10 goes to Uncle Sam,
And to bring industry back to US, how you propose he do that? All those loans to green energy companies and battery plants really created a lot of jobs, right… The real question is China. The US without doing anything will continue to slide, especially since most companies in China operate at a loss intentionally to grow their market. US companies cannot compete, so therefore the only way to level the playing field is through tariffs. It’s not like there is this major breakthrough in automotive to beat a state sponsored competitor that operates at a loss.
If other countries are putting tariffs on America products, America must do the same.
It's call fair trade.
Crazy pants way to negotiate. Reminds me of a screaming toddler trying to get something.
Anyone that thinks tariffs are good doesnt understand them.
Yeeeehhhhhhh. Bring them on , about time!