Car prices projected to jump under Trump trade agreement with Mexico

[Yo_Mama_Been_Loggin]

New car prices will rise, along with demand for used cars, as a result of President Donald Trump’s tentative trade agreement with Mexico announced Monday.

“The new agreement will push production costs higher on Mexican products — parts and vehicles — which, eventually, will be paid by American consumers," said Michelle Krebs, executive analyst at Autotrader, the car-shopping website owned by Cox Automotive.

Trump said he had made a limited bilateral trade agreement with Mexico that excludes Canada. He said the North American Free Trade Agreement will now be called the U.S.-Mexico trade agreement.

An agreement on auto manufacturing has been key to trade talks involving the U.S., Mexico and Canada. Cars are a mix of components from many countries, including low-cost labor markets such as China.

https://www.msn.com/en-us/money/markets/car-prices-projected-to-jump-under-trump-trade-agreement-with-mexico/ar-BBMwB9T?li=BBnbfcN

I'm skeptical he'll get another agreement approved still he doesn't seem to know what the fuck he's doing.

[Bernardo de La Paz]

1. They'll jump a bunch more if he puts automobile tariffs on Canada.

There are already tariffs and counter-responsive tariffs on steel and aluminum.

The three economies are very interwoven, such that a product might have bits and pieces from all three by time final assembly is finished.

Canadian steel is used for parts made in the US put into cars built in Canada and sold in the US.

Similarly,

US steel is used for parts made in Canada put into cars built in the US and sold in Canada.

Tariffs on any one part will disrupt and maybe even interrupt the chain. They can only increase prices and cost jobs everywhere.

[keithbvadu2]

2. Super negotiator Donald is going to make cars cost more? Thanks, Donald!

Super negotiator Donald is going to make cars cost more?

Thanks, Donald!