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re: Automobile Tariffs - 25%

Posted on 3/26/25 at 8:53 pm to
Posted by BuckyCheese
Member since Jan 2015
57778 posts
Posted on 3/26/25 at 8:53 pm to
quote:

In 1980, the year before VER was established, the average Japanese car was sold in the U.S. for $6,585, while the average domestic car was sold for $7,758.

The cost-conscious car buyers interested in Japanese cars and the savings they offered—and the even more cost-conscious buyers on the used market as the effects of the policy filtered down—were precisely the Americans who paid for Detroit’s “breathing room.” By 1986, the fifth full year under VER, the cost of a Japanese car had risen to $8,229 and that of a domestic car to $9,223.


Cumulative inflation from 1980 to 1986 was 41%.

The numbers above also ignore the fact the Japanese had no luxury cars, instead focusing almost entirely on econboxes and small to midsize, so of course the average for American cars was higher. Cars of the same class were priced similarly.
Posted by Swazla
Member since Jul 2016
1911 posts
Posted on 3/26/25 at 8:53 pm to
quote:

This is a breakdown of where cars sold in the US are made:
• Tesla: 100% U.S.
• Ford: 77% U.S., 21% Canada & Mexico, 2% Other
• Stellantis: 57% U.S., 39% Canada & Mexico, 4% Other
• Nissan: 52% U.S., 31% Canada & Mexico, 17% Other
• GM: 52% U.S., 30% Canada & Mexico, 18% Other
• Toyota: 48% U.S., 27% Canada & Mexico, 25% Other
• Kia: 33% U.S., 8% Canada & Mexico, 59% Other
• Volkswagen: 21% U.S., 43% Canada & Mexico, 36% Other


This is where they are assembled. The more important data would be is where are oarts made. The powertrain, seats , AC, computers and chips (they use A LOT of those,

May of thise "made in America vehicles are ASSEMBLED here. But their domestic content is low.

SO the tariffs should be focused on were they are assembled AND their domestic content,
Posted by beaverfever
Arkansas
Member since Jan 2008
36152 posts
Posted on 3/26/25 at 8:53 pm to
The ratio of unjustified whining to knowledge is off the charts lately.
Posted by BuckyCheese
Member since Jan 2015
57778 posts
Posted on 3/26/25 at 9:01 pm to
quote:

SO the tariffs should be focused on were they are assembled AND their domestic content,


They are from what I have seen reported.

Frankly, bringing more of the parts suppliers back to the US would do more for employment than the assembly plants.
Posted by chRxis
None of your fricking business
Member since Feb 2008
27872 posts
Posted on 3/26/25 at 9:04 pm to
quote:

Buh buy BMW and Mercedes

what?

bruh, people who can afford these expensive arse cars can afford the extra that the possible tariffs would add...

same with Ferraris, Lambos, etc...
Posted by JimEverett
Member since May 2020
2317 posts
Posted on 3/26/25 at 9:05 pm to
Damn. So us taxpayers bail GM out and they barely make half their cars here - basically the same as Toyota.
Posted by dcbl
Good guys wear white hats.
Member since Sep 2013
31958 posts
Posted on 3/26/25 at 9:52 pm to
Um, union baws are MAHA now

This post was edited on 3/26/25 at 9:52 pm
Posted by Taxing Authority
Houston
Member since Feb 2010
63232 posts
Posted on 3/26/25 at 9:54 pm to
quote:

That definitely includes components but 100% of Tesla’s car components do not come from the US. Maybe all of their direct vendors are American? That’s theoretically possible I guess. The numbers are definitely indicative of what I’ve observed in the industry. Ford is absolutely the most domestic of the big 3. By far.
thanks!
Posted by Taxing Authority
Houston
Member since Feb 2010
63232 posts
Posted on 3/26/25 at 9:59 pm to
quote:

Excellent point. Companies will never adjust. Consumers will never adjust. Nope, everything just continues as usual except we're paying higher prices. It doesn't increase domestic production.
do you remember the 80s? Almost a decade into the “oil crisis” domestics were still building 5L V8 that made 130HP and got 12MPG. I guess they did make some effort with the K-cars, Chevettes, Citations, and Pintos. Make Citations Great Again!
Posted by Cobbvol
Member since Jun 2020
253 posts
Posted on 3/26/25 at 10:13 pm to
quote:

Truth


Honda Marysville, OH plant - Opened in 1982
Nissan Smyrna, TN plant - Opened in 1983
Toyota Georgetown, KY plant - Opened in 1986

More followed with associated parts suppliers, fabricators, logistic companies, etc.
Posted by Diego Ricardo
Alabama
Member since Dec 2020
13079 posts
Posted on 3/26/25 at 10:14 pm to
quote:

Buh buy BMW and Mercedes

I hope we work to put both out of business or at least weaken them to a point where an American can buy the company.

Maybe Elon now that I think about it.


More likely that this ends up pissing off people who rather drive a German luxury sedan because they're better than American equivalents (mostly due to the American market becoming addicted to the crossover and truck). Not a big group of people but I bet they make up more of the GOP donor base percentage-wise than they do in the population.
This post was edited on 3/26/25 at 10:17 pm
Posted by Diego Ricardo
Alabama
Member since Dec 2020
13079 posts
Posted on 3/26/25 at 10:19 pm to
quote:

what?

bruh, people who can afford these expensive arse cars can afford the extra that the possible tariffs would add...

same with Ferraris, Lambos, etc...


Also, the type of person who doesn't want a BMW built in Spartanburg or a Mercedes built in Vance is the type of person who is accustomed to the increased wait times and costs of buying a Mercedes built in Sindelfingen or BMW built in Dingolfing.
Posted by BuckyCheese
Member since Jan 2015
57778 posts
Posted on 3/26/25 at 10:36 pm to
quote:

Damn. So us taxpayers bail GM out and they barely make half their cars here


You can thank the UAW for both.
Posted by wackatimesthree
Member since Oct 2019
13101 posts
Posted on 3/26/25 at 10:59 pm to
quote:

You guys make your dishonesty so obvious.


I wasn't trying to be dishonest, I just didn't know I had to state something so obvious.

Of course they only pay the tariff if they buy the product, and of course the reason they have the tariff is to protect their producers.

My point is that probably 3/4s of the posters on this website see something like that and think it somehow costs us the 25% that they impose on our products. There are exactly zero circumstances in which that is true.

Sure, we sell a lot more cars domestically than we do internationally. Tariffs are part of the reason for that. Another part of the reason for that is that not many other countries view American cars as being superior to German or Japanese or Korean cars. The third reason for that is that (again, didn't know I had to say things as obvious as this to keep from being called dishonest) we have the largest economy in the world.

That's the part that ya'll ignore. I'm not saying I would ever necessarily conclude that protectionist shenanigans were best for my country, but if I were in a country that was 1/5 the size of the US and manufacturing made up almost twice the US as a percentage of GDP, and I spent more of my GDP as a percentage on social welfare programs than the US, and I knew that US citizens were on average 30% wealthier than my own citizens (that would be citizens of the UK, as an example), I might be tempted. I'd be a whole lot more tempted than I would be if I lived in the US.

We have the largest economy in the world for our producers to sell to and a lot more consumers than producers. I've never argued that other countries imposing tariffs didn't hurt American producers trying to export products. What I have argued is that there is no reason for us to prioritize the producers over the consumers here. Not in 2025.

The bottom line is that these smaller countries have a lot more reason to do this than we do.

This post was edited on 3/26/25 at 11:02 pm
Posted by wackatimesthree
Member since Oct 2019
13101 posts
Posted on 3/26/25 at 11:05 pm to
quote:

Almost as funny as you trying to claim a crackden was a nice place for a 22yr old


You'll find out what's nice and what's not when you move out of your mom's basement.

In ten or fifteen years.
Posted by TutHillTiger
Mississippi Alabama
Member since Sep 2010
49830 posts
Posted on 3/26/25 at 11:06 pm to
Is this on parts too or just new cars?
Posted by Diego Ricardo
Alabama
Member since Dec 2020
13079 posts
Posted on 3/26/25 at 11:14 pm to
quote:

Tariffs are part of the reason for that. Another part of the reason for that is that not many other countries view American cars as being superior to German or Japanese or Korean cars.


With tariffs on US imports, we’d need to up the quality of our luxury brands considerably. The German Big 3 have many vehicles they don’t even bother bringing here because the tariffs blowout the value proposition for vehicles at the bottom of their European market offerings.

If you’re going to be eating an import tax, you need to be offering highly competitive luxury vehicles competing with the domestic luxury market. The prices tend to end up being roughly similar. For example, A CT5 V Blackwing is about the same as buying an M5 in the United States. Sure the M5 is more but it’s in a market where 10-20k more isn’t a deal breaker.

I think US Auto doesn’t prioritize luxury enough because they can sell so many commodity brand units to US customers. If they needed to expand globally, all the sudden Caddy would be nipping at BMW’s or Mercedes’ heels.
Posted by wackatimesthree
Member since Oct 2019
13101 posts
Posted on 3/26/25 at 11:28 pm to
quote:

I think US Auto doesn’t prioritize luxury enough because they can sell so many commodity brand units to US customers. If they needed to expand globally, all the sudden Caddy would be nipping at BMW’s or Mercedes’ heels.


Ed Zachary.

We have a large enough market to create our marketing/sales strategies around it with the international market being gravy.

This isn't true of every industry, of course, but it is for most of them.
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