Everything To Know About Trump’s Tariffs on Vehicles and Auto Parts

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it’s on the Trump tariffs are on autos. Yep. 25 % tariffs on all, all automobile imports to the United States. All these cars are cars that are not made in the United States. Basically is discussion yesterday, dispelled any sort of exemption for countries such as Canada or Mexico.

We get an enormous amount. That is the most cars coming into the United States. One thing, it’s Japan. No, it’s Mexico. A lot of plants south of the border moving cars into the United States. These tariffs will start on April 3rd. Okay, these tariffs will cover finished automobiles and automotive parts.

it will be on top of existing tariffs, including 2.5 % that is already imposed by the United States, as well as the the chicken, the chicken tariff. This goes all the way back to the 1960s. We got into a dispute with Europe over chicken. And that’s why 25 % there’s already a 25 % tariff on light trucks coming into the United States. Okay.

Obviously Canada, the prime minister, Mark Carney called the tariffs a direct attack on Canadian workers. It’s a violation. European unions, like what are we going to do? Let me kind of put it this way. Certain automobile manufacturers, they make cars here in the United States. I got some people discussing, sending me questions, emails. Well, does that mean that…

Let’s say the BMW X5, which is made here in the United States, is that going to make the, their price is gonna stay the same because it’s made here? No. No, these are global companies. These are global companies. And what they’re going to do is they’re going to price these tariffs, which are taxes, into all of their vehicles.

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So no, no, no, no, just because let’s say BMW makes their SUVs here. know Mercedes makes a bunch of their SUVs here. Hyundai makes cars here. Toyota makes cars here. Volkswagen makes cars here. It doesn’t matter. Okay. It doesn’t matter. These, you know, they all of a sudden can’t say, okay, we’re going to make our, you know, our cars coming from Germany. We’re going to just increase their price and not increase everything else. It’s going to be spread across.

the entire vehicle lineup. Now, you’re taking a look at stocks from all the automakers basically falling here in the United States as well. People say, wow, why would that be the case? The same thing holds true for our companies. We make a lot of cars over in Europe. If you go to Europe, you’d actually be amazed because you will see actually more American cars

cars, not SUVs. mean, you’re in Italy, you’re not seeing a big American SUVs. just doesn’t, know, few and far between over there. But you do see a lot of small Fords that they don’t see here in the United States. They’re made for European consumption based upon the fact that they’re paying six, seven dollars a gallon in gasoline, smaller

smaller roads, a myriad of different things. Again, they’re going to get hit with tariffs. Even though they’re made there, if you don’t think that these other countries are going to try to do something. The big hope, quite frankly, here is that tariffs are lowered across the board. We’ve seen some

We’ve seen some movement as of late in regards to India and lowering tariffs. Yesterday, there was an announcement from Vietnam cutting tariffs on American cars, liquefied natural gas, approving Elon Musk’s Starlink services. Again, all steps in the right direction. Do I know what’s going to happen or how this is going to turn out or how this is going to work out? I’m be honest with you, I don’t.

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I don’t know. As I said, the hope is that we see tariffs come down everywhere. I am a, and always have been a free trader. Trade to me, business to me is the best kind of foreign policy. It’s the best kind of foreign policy. Again, I’m an Adam Smith capitalist. Two parties sitting down together.

You know, both have wants, needs, they do business with one another, they walk away happy. You know, that’s a good thing. And I think that would solve many problems in the world, quite frankly, with the more business that’s being done. Again, being an insular economy is not the way to go. And, you know, I don’t think that we’re heading in that direction. I don’t. As far as making the United States this massive manufacturing

powerhouse again, I just don’t see it. Okay, I don’t see it. We’d like to see more plants being built here in the United States. I’d to see more, it happens naturally. One of the reasons why you’ve seen recently Hyundai and their plant just opened up that was announced back in 2019. Reason why you saw BMW, you’ve seen these other companies.

open up plants here in the United States is because we provide an environment for them that is better than the alternative, which is back there in Germany. Our energy costs are cheaper. Again, you know, the cars that they’re making, quite frankly, you know, for the American market for the most Americans like their big cars, they like their SUVs. The free market will find a way. I don’t know. I don’t know the

ins and outs of the tariffs from each individual country when it comes to our cars that are going in there. Again, I understand reciprocal. I understand it being even. tariffs turn into economic engineering, that’s when I have a bit of a problem. Now, again, do I believe

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Do I believe that we should be doing trade in business where people have indentured servitude and essentially slavery? No, no, I don’t. But cheaper labor has always, always played a part in the movement of jobs and it’s also helped to lift countries up. Even here, where, you know, the United States, the colonies, you think, we were the colonies of the UK.

We were cheaper labor over here for many products in certain industries that used to be, you know, were huge in Great Britain, moved over here, then they move elsewhere. It’s part of what happens. It’s part of the ebb and flow of things. And that’s, quite frankly, is not going to change. What I have, again, always had a problem with is when people in

You get people in Washington DC or people in Beijing or people in Brussels whatever it may be think that they can tinker around and think that they could manage an economy. You can’t manage an economy. It’s unmanageable. It’s like trying to manage Mother Nature. Can’t do it. Can’t manage Mother Nature. You deal with it. The terrain is what the terrain is. You for example today you get these useful idiots Jared Bernstein

Yeah, Jared Bernstein was the one didn’t understand how the US bond market worked and he was Biden’s economic advisor. He and Dean Baker took to the pages of the Wall Street Journal today. Tariffs won’t bring a boom to American manufacturing. He writes this whole thing, you know, going against tariffs and how they’re going to work. You know what his suggestion was? I’m not making this up. He said what will really help America is more subsidized loans, tax credits and grants for green shit.

Yeah, he actually put this, and again, know, honestly, Wall Street Journal, mean, come on, this is just stupid. You don’t need to print something this moronic for crying out loud just because it’s from Jared Bernstein, actually suggesting that’s what we need to do. What the country needs to do is to subsidize more green jobs, more windmills, more solar panels. Really, you really can’t get much dumber than that. Anyway.

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Anyway, we’re going to see what the fall is going to be next week. big week. Big week when it comes to tariffs. We are without a doubt, we are in a better position than these countries and we are putting tariffs on. Trump also laid down the law, said, if Canada and the European Union, you’re going to start getting together here to work together to

hurt the United States, well, he’s gonna push back even further than that. We don’t want, we don’t need to see that. Again, I think that everything’s on the table? Do I think that the lawfare that takes place in the European Union against our technology companies, is that gonna be a part of this as well? Yeah, I do.

Yeah, I do. And quite frankly, I’m hopeful. I’m hopeful within the next several weeks, there’ll be a bit of a meeting of the minds and everyone can walk away happy because that and essentially that’s what you want. That’s what the best deals that are made. It’s not when you get over on someone. Now, because guess what? That comes back to bite you later on.

rents it causes bad blood that hurts business. It’s short term ratification rather than long term gain. The best deals that are done are the deals that are done where both sides are happy. Watchdogonwallstreet.com