Featured Trump tariffs put the US auto industry in disarray

Historically tariffs between China and USA have been heavily in China's favor. Not to mention all the other ways they wage unfair trade. IP theft, currency manipulation, outright ban of US companies, it's not just tariffs.

Which country is more trustworthy? You can trust Japan to a certain extent, you can't trust China at all.
Which country already has more auto factories here than any other country?
Which country is flying spy balloons over US territory, and actively importing fentanyl?

So everyone is just lying about the Japan deal, nothing is going to happen (The Orwell TV has people hating Trump so much, they don't want anything good happening to their own country if Trump is involved)

""WASHINGTON/TOKYO, July 23 (Reuters) - U.S. President Donald Trump struck a trade deal with Japan that lowers tariffs on auto imports and spares Tokyo from punishing new levies on other goods in exchange for a $550 billion package of U.S.-bound investment and loans....
It is the most significant of a clutch of agreements that Trump has bagged...
As part of the deal, Japan will buy 100 Boeing planes and hike defense spending with U.S. firms to $17 billion annually,...
U.S. Treasury Secretary Scott Bessent said in an interview with Bloomberg Television that Japan received the 15% rate on auto tariffs "because they were willing to provide this innovative financing mechanism" that he did not think other countries could replicate""

And it's not just Japan, it's Germany also

""Audi building plant in USA to please Trump
Audi, the luxury arm of Volkswagen Group, is exploring plans to build a manufacturing plant in the United States as part of efforts to reduce the impact of ongoing trade tensions with the U.S. government....
internal estimates suggest the investment could reach up to €4 billion ($4.6 billion).......
Currently, Audi does not operate any manufacturing plants in the United States. However, its parent company Volkswagen operates a production facility in Chattanooga, Tennessee, and is building another near Columbia, South Carolina.""

 

Yep; just like the Microsoft phone, Blackberry, old Nokia - If customers can't find or install the apps they want. They're going to switch back to an Android or Apple based environment.
What about the Windows S environment laptops - most people who bought them reverted back to full untethered Windows environment. Windows S only allowed you to download apps from the windows store - alegality secured tested apps.

 

Seems like most of the Microsoft store functionality has been sunset as well, no access to former movies or virtual media purchases .

 

I agree but the US doesn't produce many things that china does. Trump failed in negotiating for the US in his first term, and did it in bad faith. Biden had 4 years to fix things and kept trump policies other than the chips bill which is bring semiconder manufacturing back to the US. No surprise that china reneged on some fuzzy elements, and that trump claimed a victory. I think he is botching negotiations again. First half of the year china grew at 5%, the US at 1.25% as countries move away from the US and do more business with china.

No but there is nothing in writing and the agreement as I read it is bad for the US.

Tarrifs on cars produced in Japan sold in America went up from 2.5% to 15%, they were lowered from the threat, but raised significantly on not just autos but just about everything imported from Japan. So yes this is a form of misleading. US consumers and businissss will pay more. The $17B was mostly old, up from $14B. Since tariffs are now 25% for autocrats, and 50% on steel and aluminum I doubt this relatively lower on Japanese cars built in Japan vs moving manufacturing to the US will increase auto employment. IF it does it will take years. Because of the ham handed way the tariffs have been done investment in manufacturing in Autos has decreased and manufacturing has lost 37,000 jobs since liberation day. With so much winning. How many jobs do you think will be created in autos and other things tariffed.

It is a win for trump, because he can claim victory while raising taxes on the working class. He also gets to pressure individual companies and that helps his ego. I expect fewer auto and steel workers in 5 years.

 

I bet dollars to donuts that it doesn't produce cars within Tramps' term, unless he pulls a Putin and tries to stay in power. It's just like the empty Apple promises to hire 20K US employees that's made to every president, when they step into office. LG did the same and finally shuttered plans to open that factory in the upper mid-eastern state.

Tariff on raw materials is going to really jack up prices, so the best we can hope for is an assembly plant. If we lose more jobs than we gain from tariff; is that really a win?????? Don't even get me started on average household debt of US families.

YMMV

 

Do those tariffs help the unionized factory workers building American cars? The ones who lauded DJT before the election.
UAW members at Detroit 3 face big drop in bonuses from tariffs - Automotive News

 

Best to let the UAW answer for themselves
May 15,2025
UAW president applauds Trump administration for tariffs on foreign-made cars, says it ends "free trade disaster" - CBS Detroit

In a Victory for Autoworkers, Auto Tariffs Mark the Beginning of the End of NAFTA and the “Free Trade” Disaster - UAW | United Automobile, Aerospace and Agricultural Implement Workers of America

... be aware the UAW is not ethical nor reasonable and only cares about what is best for them and puts money in their accounts - they could generally care less about what is good for their membership, the industries they work in and the country!

How a decade of corruption unfolded at the United Auto Workers

A Tale of Corruption by the United Auto Workers and the Big Three American Automakers | MR Online

Second UAW president sentenced to prison in union corruption probe

Shawn Fain is the current UAW President:

Federal judge orders UAW to stop obstructing ongoing investigation into corruption within Fain administration - World Socialist Web Site

UAW President Shawn Fain under investigation by federal monitor | CNN Business

 

I believe many in the rank and file want to replace fain. Again August may look very differently than may when it comes to experiencing the impacts of the tariffs.

Is UAW President Shawn Fain's job in jeopardy?

Toyota today announced the tariff's have hurt earnings byhttps://www.reuters.com/business/autos-transportation/toyota-warns-95-billion-tariff-hit-slashes-annual-profit-forecast-2025-08-07/

We will see if the tariffs help or hurt auto workers in the long run. History says it will hurt, but UAW leadership seems optimistic. They when asked have no idea how higher costs are going to get companies to increase employment. Argentina may be the best example where it initially led to higher employment, then over a couple of years layoffs and rapid inflation, Argentia was much more dependent on imports so I would not think inflation and unemployment would be as high but what do we get for the higher taxes given.

UAW leadership and many companies are scared to say anything negative. Colbert talked about the paramount bribe and was not only fired, they canceled the show so all the hard workers will lose their jobs. Intel spoke up and trump called for the president of intel to be fired. I guess we are taking steps to crony capitalism and lower growth and higher inflation.

Check back about the failure of many small businesses in a couple of years then tell me how much you love high tariffs and giving the power to punish with them to a single man. That really is a form of socialism.

 

Outside of the USA, ICE appears to be dying. The Chinese (and others) have figured out how to make them price competitive with ICE. They have also figured out how to generate electricity price competitive with coal, natural gas, and nuclear.

ICE carries an oil price burden and other countries understand man-made global warming. It doesn't really matter what USA ICE cars are made as their customer base, outside of the USA and Russia evaporates. Shrinking markets are the death knell of buggy whips and ox carts.

Bob Wilson

 

That is a point many have made.
Let the markets speak for themselves!
Stop government intervention and incentives and common sense, fiscal/economic realities will prevail.
I, much like you bought a PHEV for the fiscal economic realities of transporting ourselves as cheaply and dependably as possible.
As someone who gardens, hikes, fishes and spends as much time as possible outside, the environmental benefits are also nice.

As I age I have also rediscovered the joys of bicycling and walking to places again - in a small town that is a refreshing way to transport yourself.
Do realize that if you are not retired these can also be time consuming methods to move yourself around.

I would make a safe assumption that in Asia and Europe the bicycle is king for transportation... I know this in Japan and England as I spent considerable time in both places and think they are reasonable representations of most of Europe and Asia.

 

But aren't tariffs government intervention?

It doesn't really matter, IMO, how the incentive or disincentive is carried out. In the end, it's the exact same thing, trying to make more people buy one thing and not another.

 

My opinion - of course Tariffs are government intervention.

The discussion begins to get interesting and multi-faceted when you begin to discuss if they level the playing field with other nations or unnecessarily restrict free global trade.

I'll plead ignorance on this as I have neither all the facts, necessary insights, and necessary economic education/training to make those type decisions on a world economic trade platform - and am not embarrassed at all to admit my lack of qualifications.

I am willing to let others who are in a position to know and get advised professionally on the facts to have a chance to do what they think is best - and see how that works out and make adjustments/changes as necessary.
I think monitoring the long-term/short-term effects/results and making adjustment/changes as necessary is a key ingredient and if necessary abandon them completely.

 

auto industry takes 12 billion dollar tariff hit:
article-toyota-95-billion-us-tariff-profit-estimate
auto-industry-trump-tariff-impact-955ca0bf

 

The discussion gets interesting for you and those of like mind because it is your opinion and perception that something needs to be protected. So for you, it's okay to restrict what many Americans would probably have no problem buying and force them to buy what you consider okay.

Those that were "forcing the market" with the "EV mandate" were also following their opinion and perception of what needs to be protected. It's the same thing: One group of people have an opinion and decide that everyone else needs to follow that and then ignore what other people feel is important.

This is why the car market is completely stupid. I can only buy whatever the American government allows me to, because that's all we are all forced to buy in the name of "liberty." If that isn't true, then where's my Renault Kagoo, Suzuki Kei truck, and BYD Dolphin? Long live the American blob car and its brother, the boxy car.

I'm not saying that there isn't an unlevel playing field. But I'm also not saying there isn't an environmental issue at play here either. And there is no guarantee that EVs will eventually clean up the environment nor that tariffs will eventually create a level playing field. And all for what? Restricting citizens to buying whatever the current administration deems as important to them, not what the other party thinks is important and definitely not what the individual would buy if he had the chance.