US Tariffs

senditover said:
I don't think they're too worried, at the end of the day United Auto Workers are on Orange side and Elon's Tesla isn't too bothered by it since his production is mostly done in the US of A. Markets aren't thrilled obviously but this is just another buying opportunity frankly. Tariffs are actually deflationary so watch as prices will come down across the board.
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Going to be interesting when the ones building the cars wont be able to afford them. I think that's what the automakers unions always wanted. I have some friends in the auto business stateside and I've been told the used car auctions are going crazy, covid type numbers. The down turn has started.
 
The 1930s, then, were a great buying opportunity as well.. if you think about it. But for some reason few took advantage of it... hmmm.. I wonder why. Tariffs are an increase in the cost of doing business.. i.e. a 25% tariff on a product that cost $100.00 yesterday, before the tariff, will be $125.00 today... hardly deflationary. Sure some (a select few) businesses will be able to absorb the tariff without passing it on to the customer. But name one business that can do that.. very few I would reckon..
 
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Freight Broker said:
The 1930s, then, were a great buying opportunity too.. if you think about. But for some reason few took advantage of it... hmmm.. I wonder why. Tariffs are an increase in the cost of doing business.. i.e. a 25% tariff on a product that cost $100.00 yesterday, before the tariff, will be $125.00 today... hardly deflationary. Sure some business will be able to absorb the tariff without passing it on to the customer. But name one business that can do that.. very few I would reckon..
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There are very few businesses that support a profit margin large enough to completely absorb a 25% tarrif. But either way you do it, that money comes out of somewhere, if a business is reducing their profit they will cut the cost somewhere else. Cheaper materials, cutting jobs, slowing down investment in growth i could go on. There is no winning in a trade war
 
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LrgCar said:
Going to be interesting when the ones building the cars wont be able to afford them. I think that's what the automakers unions always wanted. I have some friends in the auto business stateside and I've been told the used car auctions are going crazy, covid type numbers. The down turn has started.
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I have heard the same that the numbers at Manheim's are out of this world high. I figured they where when I heard what the wholesaler offered on my 2022 pick up 2 weeks ago.
 
Freight Broker said:
The 1930s, then, were a great buying opportunity as well.. if you think about. But for some reason few took advantage of it... hmmm.. I wonder why. Tariffs are an increase in the cost of doing business.. i.e. a 25% tariff on a product that cost $100.00 yesterday, before the tariff, will be $125.00 today... hardly deflationary. Sure some (a select few) businesses will be able to absorb the tariff without passing it on to the customer. But name one business that can do that.. very few I would reckon..
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China and India have some of the highest trade barriers in the world and low inflation. Tariffs and quantitative tightening doesn't increase inflation, it lowers it. It's too simplistic a view to just say all the cost will be burdened by the consumer. Companies will have to re-evaluate their supply chains and possibly leave the American market, but at the end of the day Orange's policies are very pro American and as much as we don't like it he is supporting his own and we need that same type of leadership on this side of the border.
 
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senditover said:
China and India have some of the highest trade barriers in the world and low inflation. Tariffs and quantitative tightening doesn't increase inflation, it lowers it. It's too simplistic a view to just say all the cost will be burdened by the consumer. Companies will have to re-evaluate their supply chains and possibly leave the American market, but at the end of the day Orange's policies are very pro American and as much as we don't like it he is supporting his own and we need that same type of leadership on this side of the border.
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China and India have massive domestic markets with huge populations and lower average wages, which means their economies are more self-sufficient. They can afford to put up trade barriers because they don’t rely on imports the same way the US does.

China, is a communist state you cant compare it to the US. They have a heavily state controlled economy where the government subsidizes key industries, manipulates currency value, and uses tariffs strategically to protect domestic industries, they are the manufacturing powerhouse of the world, imports cant compete.
 
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LrgCar said:
China and India have massive domestic markets with huge populations and lower average wages, which means their economies are more self-sufficient. They can afford to put up trade barriers because they don’t rely on imports the same way the US does.

China, is a communist state you cant compare it to the US. They have a heavily state controlled economy where the government subsidizes key industries, manipulates currency value, and uses tariffs strategically to protect domestic industries, they are the manufacturing powerhouse of the world, imports cant compete.
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Actually China shifted to a socialist market economy a long while back. They noticed the failures of the USSR in their heavily state controlled economy and shifted to a more market economy. That's the reason they've been so successful in their economic gains over the last two decades.

The problem for the US is you're right, they've had low regulations for so long that have only served corporations and not the country at large. Tariffs will now force these corporations to move their means of production back to the homeland.
 
If tariffs are so bad for the economy, why does every country in the world utilize them?
I think only orange man haters, and countries that are going to be exposed as economic failures (Hi, Canada!) are getting butt hurt about this. I'm not a fan of the new tariffs but only because I know how bad the government has made it here and we'll see the results soon.
 
JACKBURTON said:
If tariffs are so bad for the economy, why does every country in the world utilize them?
I think only orange man haters, and countries that are going to be exposed as economic failures (Hi, Canada!) are getting butt hurt about this. I'm not a fan of the new tariffs but only because I know how bad the government has made it here and we'll see the results soon.
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TDS is real!
 
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JACKBURTON said:
If tariffs are so bad for the economy, why does every country in the world utilize them?
I think only orange man haters, and countries that are going to be exposed as economic failures (Hi, Canada!) are getting butt hurt about this. I'm not a fan of the new tariffs but only because I know how bad the government has made it here and we'll see the results soon.
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Americans have their industrial base hollowed out by their own leaders to take advantage of 3rd world labour costs in return for cheap gadgets and then have a century defining freak out and tariff the entire world and the countries are only reacting because Orange man bad and irrational butthurt? haha
 
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Tariffs are a mechanism to protect the domestic economy from foreign entities taking advantage of the domestic opportunities available. Trump's end goal is that all demand for goods is sufficiently fulfilled with domestic manufacturing. While a novel idea- it is utopian. The backstory of a tariff is that domestic manufacturing eventually feels protected by the government's tariff. The manufacturer now only has to worry about domestic issues such as if a manufacturer in a different area of the country can make the same product for less with cheaper labor, taxes or other inputs. Prices to the end consumer will increase as supply of these goods will be much more easily manipulated by the domestic suppliers. The prices will increase until finally the price offered domestically matches the price from foreign suppliers with the tariff included to which the cycle will need to play out again by raising the tariff.
While that works for a very large economy, like in the previous post, China and India, is the US ready for this? I think that the US has an unsatiable need for things that cannot be produced in the US. Think of all the plastics that we get cheap that is made without regard for the environment. Environmental and labor protection laws will have to change. Does the US want that?

On the flip side, if Canada does not implement tariffs to other foreign entities, the Americans will be coming to Canada to buy cheap goods. Border towns will be building malls and resorts.

A smart man said to me about 15 years ago, we cannot continue to buy all our goods at Walmart yet demand our salaries increase each year. It just won't work.

As always, time will tell.
 
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JACKBURTON said:
But so will quality.
Nobody has a 1951 LG refrigerator in their garage keeping the beer cold. Frigidaire? Yes.
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Value is a quality that the consumer decides and not the manufacturer. I believe the opposite will happen, manufacturers will cut costs any way they can, so they make more money. All across North America we live in a world where everyone only looks for the lowest cost and doesn't care about quality.
 
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senditover said:
China and India have some of the highest trade barriers in the world and low inflation. Tariffs and quantitative tightening doesn't increase inflation, it lowers it. It's too simplistic a view to just say all the cost will be burdened by the consumer. Companies will have to re-evaluate their supply chains and possibly leave the American market, but at the end of the day Orange's policies are very pro American and as much as we don't like it he is supporting his own and we need that same type of leadership on this side of the border.
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So with any luck, these tariffs will eventually make it possible for us to enjoy the same lifestyle that the Indians and Chinese now enjoy. Wow, I can’t wait.
 
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Freight Broker said:
So with any luck, these tariffs will eventually make it possible for us to enjoy the same lifestyle that the Indians and Chinese now enjoy. Wow, I can’t wait.
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Well Chinese cost and quality of living is certainly better than Canada's. They maintain high tariffs, strong immigration enforcement, and environmental laws so the cities are very clean and prices are affordable across the board.

 
The tariffs are a game changer for sure. The transport industry is going to have to adjust because it is probably going to change the balance of trade and even what percentage of goods moving are transborder versus domestic.

It won't happen overnight because there is a lot of planning to align things the new way, but it will happen. Should be very interesting for the trucking industry for sure.
 
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