What isn't being talked about on trump's tariff fiasco is how foreign car companies are levied on average

[lostincalifornia]

a 15% tariff, while for domestic US car makers they will actually cause American car makers to cost more to produce cars because they have to pay 50% on steel, 50% on Aluminum, 25% on foreign parts, and 80% tariffs on Chinese materials, and when you get done American car companies may end up paying 5-10K more for building American cars, then direct rivals from Japan, Korea, Germany, etc., yet very little is being talked about that, and the delayed cost of tariffs is completely being ignored, except by the federal reserve, which is getting painted as the "villain" by this administration.

Right now Wall Street is in a Euphoria over AI, while ignoring everything else.

[mwmisses4289]

1. Then we dems need to go front and center with this.

[The Madcap]

2. I would rather buy Japanese anyway

Due to quality.

[Cosmocat]

5. No question

Hondas, Toyotas, Mazdas are a bit more expensive to maintain, but mechanical reliability and quality of materials is way better. Its too big of an investment to roll the dice with american made cars when you have that option.

[MurrayDelph]

7. I'm taking my 2014 CR-V in for scheduled maintenance next week

It has 224,000 miles and (knock wood) still going strong.

[Cosmocat]

10. I put 200,000+

on a civic and accord, and am now in a Mazda CX-5 - hoping to push 250,000 with it.

[edhopper]

3. Foriegn Car companies

do not pay the tariffs. Domestic car buyers pay it.

[lostincalifornia]

6. Of course, or the foreign car makers actually reduce their car prices so the tariff costs won't increase the price

of the vehicle.

It will be hard for American car companies to do that if their material costs to build the cars are significantly higher because of his tariffs.

Either way prices are going up, and with respect to domestic autos, they will go up higher than their foreign counter parts. There is a reason Ford and GM have voiced significant concerns about the impact of US tariffs on imported vehicles and parts.

and to make things factually correct, I have edited the OP to reflect the tariff's as being levied on the price of the cost of the cars per your implied suggestion.

[WSHazel]

12. They will sell their production somewhere else

Companies will sell where they can get the best price. If that is not the U.S., they will sell somewhere else. Some of these companies may find there is not enough margin to sell in the U.S., and they will simply cut back production, which will increase prices for everyone.

There is no realistic scenario where this does not result in long-term inflation.

[exboyfil]

9. In pure economic terms both sides probably pay a bit of the tariff

The car companies are pricing into an elastic demand curve. They will eat some of the cost to find their optimum price point. Overall less cars sold as individuals seek alternatives.

[WSHazel]

4. I have spent 25+ years in capital markets

This is the most insane market I have ever seen. Valuations are off the charts. We have this insane tariff system emerging where U.S. manufacturers pay no tariffs while other countries pay 15%+. That is terrible for consumers and will drive inflation and shortages. I assume that it is also temporary and the Europeans and others are just buying time before they re-trade, but there is no way to predict any of this. Any "expert" that claims they know what will happen is making it up. There is no precedent for any of this.

The U.S. had the best economy in human history under Biden, and chose to do this with it.

[lostincalifornia]

8. How those prices will be incorporated into the final product will depend how the compnies decide to handle

those tariff levies.

The tariffs will be added to the price of the product imported by the U.S., and the consumer will end up paying for those tariff costs, unless of course the product manufacturer decides to lower the price of the product so the levied tariff price stays the same.

American car companies will have problems with that because of the increased cost of materials.

Both Ford and GM have told this administration that the tariffs will hurt them. So far that has fallen on deaf ears.

There is no question this is going to be significantly inflationary. The only thing Wall Street seems to care about right now is AI.

As for pushing companies incentivized to produce their products here to avoid the tariffs, the increased labor costs are going to be a factor, and will not be the panacea this administration sees.

[WSHazel]

11. Why would anyone make capital investments in the U.S.

The President changes his mind hour to hour, so why would private companies make investments that do not pay off for a decade or more?