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Trump threatens German car makers with 35% U.S. import tariff

DA60

DA60

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'U.S President-elect Donald Trump warned German car companies he would impose a border tax of 35 per cent on vehicles imported to the U.S. market, a plan that drew sharp rebukes from Berlin and hit the automakers’ shares.'

...

'“I would tell BMW that if you are building a factory in Mexico and plan to sell cars to the USA, without a 35 per cent tax, then you can forget that,” Trump said.'

Trump threatens German car makers with 35% U.S. import tariff - The Globe and Mail


Thoughts?
 
What a buffoon. So now if BMW builds a plant in Mexico, he will hit them with a tariff?

So now he is saying that they cannot build plants ANYWHERE but America...or he will hit them with a tariff?

And what will the German government do if he does this? Nothing? Of course not. They will retaliate and put huge tariffs on American goods imported to Germany.

This knucklehead, he is going to start a trade war and EVERYONE will lose except the rich.

Anyone who thinks a trade war will help the little guy/gal in America has NO IDEA what they are talking about.


Sure...a few extra, mostly cruddy jobs will come from it. But prices will SKYROCKET...which will hurt the middle class/poor and those on fixed incomes a TON.

America generally exports high end products and imports low end products. SO yes, more crappy jobs will be created. But since those high end exports will have tariffs put on them by other countries in retaliation for Trump's massive tariffs, they will sell far less and have to lay of good American jobs.
Also, by alienating other countries, they will no longer desire the dollar. So it will lose value...which will hurt Americans even more as everything they buy that is imported (like oil) will cost FAR more just on the devalued dollar.

It is macroeconomic lunacy.

The last time America tried it - the partial result was the Great Depression (Smoot-Hawley).

Donald? The reason no one does this is not because you are smart and they are dumb. It's because it has been tried before and it failed MISERABLY. But Trump is too arrogant and too ignorant to learn from history (and economic common sense).
 
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Well it seems that our incoming POTUS has a 19th century view on things.
 
I think these lines from the very end of the article give a good example of Trump’s detailed insight on the topic;
Trump called Germany a great car producer, saying Mercedes-Benz cars were a frequent sight in New York, but claimed there was not enough reciprocity. Germans were not buying Chevrolets at the same rate, he said, calling the business relationship an unfair one-way street.

Chevrolet sales have fallen sharply in Europe since parent company General Motors in 2013 said it would drop the Chevrolet brand in Europe by the end of 2015. Since then, GM has focused instead on promoting its Opel and Vauxhall marques.
Click to expand...
 
To paraphrase Germany's actual response to Trump on this issue: "Stop building ****ty cars and we might buy more."

German ministers reject Trump remarks on car tariffs

We're finally starting to see the "big wonderful plans" he was so vague about on the campaign trail to "make America great again". Turns out it's just recycling the same failed ideas from the past.
 
Will he put a tarif on fords made in Europe that occasionally get sold here?
 
DA60 said:
'U.S President-elect Donald Trump warned German car companies he would impose a border tax of 35 per cent on vehicles imported to the U.S. market, a plan that drew sharp rebukes from Berlin and hit the automakers’ shares.'

...

'“I would tell BMW that if you are building a factory in Mexico and plan to sell cars to the USA, without a 35 per cent tax, then you can forget that,” Trump said.'

Trump threatens German car makers with 35% U.S. import tariff - The Globe and Mail


Thoughts?
Click to expand...

This is an interesting one. Our Big 3 has about half-again as much market share in the EU as the German Big 3 has here, but the US car market is about half-again larger. And one of our Big 3 is actually British owned to begin with, so there's that.

Given an increase in domestic sales for an equal decrease in European sales, we come out ahead in terms of employment. And our domestic factories have plenty of spare capacity, and there is plenty of competition in the market, so prices likely wouldn't rise.

Plus, the EU would have to make such a decision, not just Germany. But there really aren't any other countries with major car manufacturers in the EU that would feel the heat of retaliation, so they probably would get the vote. Then again, the EU imports a lot of food, so maybe they'd think twice about retaliatory tarrifs.
 
Keep an eye on your stocks and portfolios people. If Trump is going to rant everyday about tariffs and breaking trade agreements Wall Street will become shaky, to say the least.

Wall Street does NOT like rocking the boat.
 
DA60 said:
'U.S President-elect Donald Trump warned German car companies he would impose a border tax of 35 per cent on vehicles imported to the U.S. market, a plan that drew sharp rebukes from Berlin and hit the automakers’ shares.'

...

'“I would tell BMW that if you are building a factory in Mexico and plan to sell cars to the USA, without a 35 per cent tax, then you can forget that,” Trump said.'

Trump threatens German car makers with 35% U.S. import tariff - The Globe and Mail


Thoughts?
Click to expand...

Trump is an Idiot.
 
DA60 said:
'U.S President-elect Donald Trump warned German car companies he would impose a border tax of 35 per cent on vehicles imported to the U.S. market, a plan that drew sharp rebukes from Berlin and hit the automakers’ shares.'

...

'“I would tell BMW that if you are building a factory in Mexico and plan to sell cars to the USA, without a 35 per cent tax, then you can forget that,” Trump said.'

Trump threatens German car makers with 35% U.S. import tariff - The Globe and Mail


Thoughts?
Click to expand...

Fine, the US cars being made in Europe by GM and Ford will get a 35% tax on them as well. The man is an idiot.
 
Gonzo Rodeo said:
This is an interesting one. Our Big 3 has about half-again as much market share in the EU as the German Big 3 has here, but the US car market is about half-again larger. And one of our Big 3 is actually British owned to begin with, so there's that.
Click to expand...

LOL there is no British owned car manufacture. You are thinking of Chrysler.. that is Italian.

Given an increase in domestic sales for an equal decrease in European sales, we come out ahead in terms of employment. And our domestic factories have plenty of spare capacity, and there is plenty of competition in the market, so prices likely wouldn't rise.
Click to expand...

Cant sell US made cars in Europe due to different regulations.. same with European made cars cant be sold in the US.

Plus, the EU would have to make such a decision, not just Germany.
Click to expand...

No.. the WTO would make the decision after a complaint by the EU (and the rest of the world). That would mean that Trump would either have to stop the tax, or accept similar sanctions on US exports. Or of course just leave the WTO..

But there really aren't any other countries with major car manufacturers in the EU that would feel the heat of retaliation, so they probably would get the vote.
Click to expand...

The non US car manufactures world wide dwarf that of the US. The US may be the second biggest market after China, but lets put it this way.. the world can live without US cars but the US can not live without the rest of the worlds cars..

Then again, the EU imports a lot of food, so maybe they'd think twice about retaliatory tarrifs.
Click to expand...

Err no the EU does not. The EU makes more food than it can eat. Most US foods are banned into the EU because of all the crap you put in your food over there.
 
PeteEU said:
Fine, the US cars being made in Europe by GM and Ford will get a 35% tax on them as well. The man is an idiot.
Click to expand...

Why is he an idiot for trying to bring jobs back to America?
 
Lord of Planar said:
Why is he an idiot for trying to bring jobs back to America?
Click to expand...

I don't think anyone is accusing Trump of being an idiot "for trying to bring jobs back to America". Perhaps a blind spot is inhibiting your objectivity and affecting your comprehension on this issue.

It is the foolish way Trump is going about this that is the problem.

If you believe that it is not the federal government's role to pick and choose winners in the private marketplace (and your stated political lean suggests that you are against government intervention in the "free market"), you should disagree with Trump's approach simply on principle alone.
 
DA60 said:
'U.S President-elect Donald Trump warned German car companies he would impose a border tax of 35 per cent on vehicles imported to the U.S. market, a plan that drew sharp rebukes from Berlin and hit the automakers’ shares.'

...

'“I would tell BMW that if you are building a factory in Mexico and plan to sell cars to the USA, without a 35 per cent tax, then you can forget that,” Trump said.'

Trump threatens German car makers with 35% U.S. import tariff - The Globe and Mail


Thoughts?
Click to expand...

In principal it is a massive break with the declared policy of the US since before I was a kid.

In practice Germany's economic model is very hard to justify much as is China's. The strategy was fine for a destroyed country or developing one that needed help by outsiders that were willing to accept a playing field tilted against them. This is the case for both countries. They have not switched to internal market supply and are only feasible as export surplus nations. In the case of Germany the point at which they could/should have made the travers was in the late 1960 to early 1970 period, when Bretton Woods began to waver. The did not. They did not even pay for the security umbrella under which they compete with the US.

So, while the example might be wrongheaded, the strategy is right on. But it will take more complicated action, than the public would want to think through.
 
Lord of Planar said:
Why is he an idiot for trying to bring jobs back to America?
Click to expand...

Because he aint going to be bringing them back..BMW and Mercedes cant justify building a plant in the US because of costs already. So they will just make them in Germany or elsewhere in existing factories and send them by boat. Hell there is speculation that VW will pull out of the US fully because of Trump.. they cant justify the increased costs compared to their limited sales there. And lets be real.. BMWs and Mercedes are already expensive cars, so what if they get a tad more expensive. Those that buy these types of cars, buy them because they are German quality cars. The threat would have matter far more if it was put at Toyota or another non US carmaker that sells a lot in the US, to the "average consumer".

And lets be clear here.. the last time the US acted like this, was in 1929 and it meant that the great depression lasted over a decade.
 
RabidAlpaca said:
To paraphrase Germany's actual response to Trump on this issue: "Stop building ****ty cars and we might buy more."

German ministers reject Trump remarks on car tariffs

We're finally starting to see the "big wonderful plans" he was so vague about on the campaign trail to "make America great again". Turns out it's just recycling the same failed ideas from the past.
Click to expand...

DT has said all along that he would put tariffs on cars made in other countries that are imported into the states.

Go Donald.
 
RickJames3000 said:
I don't think anyone is accusing Trump of being an idiot "for trying to bring jobs back to America". Perhaps a blind spot is inhibiting your objectivity and affecting your comprehension on this issue.

It is the foolish way Trump is going about this that is the problem.

If you believe that it is not the federal government's role to pick and choose winners in the private marketplace (and your stated political lean suggests that you are against government intervention in the "free market"), you should disagree with Trump's approach simply on principle alone.
Click to expand...
You are assigning blame before anything happens.

We need to fix the damage done by free trade deals.

That is a nown damage t US jobs.
 
Lord of Planar said:
You are assigning blame before anything happens.

We need to fix the damage done by free trade deals.

That is a nown damage t US jobs.
Click to expand...

Impulsively tweeting threats against corporations and foreign leaders just ain't gonna get the job done.
 
PeteEU said:
Because he aint going to be bringing them back..BMW and Mercedes cant justify building a plant in the US because of costs already. So they will just make them in Germany or elsewhere in existing factories and send them by boat. Hell there is speculation that VW will pull out of the US fully because of Trump.. they cant justify the increased costs compared to their limited sales there. And lets be real.. BMWs and Mercedes are already expensive cars, so what if they get a tad more expensive. Those that buy these types of cars, buy them because they are German quality cars. The threat would have matter far more if it was put at Toyota or another non US carmaker that sells a lot in the US, to the "average consumer".

And lets be clear here.. the last time the US acted like this, was in 1929 and it meant that the great depression lasted over a decade.
Click to expand...

VW may pull out of the United States because they're cheaters and liars.


It will pay a criminal fine of $2.8 billion, and operate under the oversight of a court-appointed independent monitor for three years.

In addition, VW will pay a further $1.45 billion to settle civil claims by the Customs and Border Protection agency under U.S. customs and environmental laws.
Click to expand...

https://www.yahoo.com/news/vw-settles-diesel-cheating-cases-felony-pleas-4-150000554.html
 
RickJames3000 said:
Because I have an education beyond the 9th grade.
Click to expand...

Let me get this straight.

You are saying Trump is making places lay off people because of the fear he is instilling on employers?
 
DA60 said:
'U.S President-elect Donald Trump warned German car companies he would impose a border tax of 35 per cent on vehicles imported to the U.S. market, a plan that drew sharp rebukes from Berlin and hit the automakers’ shares.'

...

'“I would tell BMW that if you are building a factory in Mexico and plan to sell cars to the USA, without a 35 per cent tax, then you can forget that,” Trump said.'

Trump threatens German car makers with 35% U.S. import tariff - The Globe and Mail


Thoughts?
Click to expand...

Can't help but ask, WTF does Trump think the role of the president is? It's not up to him to make these kinds of "deals." He needs to introduce legislation and change laws. How can he constantly go after companies one by one, threatening and bribing?

Sooner or later this needs to be explained to him.
 
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