re: Trump Warned U.S. Automakers Not to Raise Prices in Response to Tariffs

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They will. Because they are smarter than he is.

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And what do you think he will do about it?

“Tariffs, at any level, cannot be offset or absorbed,” Ray Scott, chief executive of parts supplier Lear, wrote in an email Tuesday to employees that was viewed by The Wall Street Journal. “A holistic, industrywide approach will be necessary to mitigate the impact.”

For now, dealers have stockpiled a two- to three-month supply of new cars, meaning the impact of the tariffs might not start to be felt until May. At that point, vehicle prices could rise 11% to 12% to offset the tariffs, Morgan Stanley analysts said Thursday in a note.

An executive at one of the automakers said they were baffled by the desire to both impose tariffs—but also tell car companies they couldn’t raise prices.

“The math would tell you, that’s going to cost us multibillions of dollars,” the executive said. “So who pays for that?”

Just a couple days ago people here were telling us that BMW bent the knee, even though the math showed that was clearly a lie.

If foreign production is 45%, and there's a 25% tariff, gosh, what's the math here...let me see
.45 foreign + .55 domestic = 1 Total national sales price figure, and if the cost for foreign goes up by 25% then we get .5625 foreign + .55 domestic = 1.1125 total car price, which is in line with the 11%-12% increase in car prices across the board, as indicated in the article.

People here were celebrating because the BMW price increase looked as though it would only be about 5% on MSRP but that quickly becomes 17% if nothing comes off the top from the new MSRP, while current buyers often get about 10% off of MSRP, which was exactly how estimates were laid out in an article I posted.

Well, son of a bitch, it appears we should expect across the board price increases after all, since virtually every auto maker has a mix of foreign and domestically made products that are on the lots.

Just as I suggested previously.

To be fair, I suggested an even larger price bump, and that's exactly what we're going to get because the non-tariff autos are going up in baseline MSRP price since the tariff autos get an increase. Now that BMW has announced a new MSRP, domestic products will artificially increase. The baseline will be adjusted upwards, and then the tariffs adjustment will kick in. Then you have tariffs on aluminum and steel and auto parts. Trump is going to create a 15% inflation in the auto market when the #1 issue in the last election was cost of living. Brilliant move right there. That's some 3D chess.

I look forward to the true auto price increase being less than the 15% I'm predicting so the usual cast of characters can pretend they're "winning" by only getting a 12% or 11% or maybe just a 10% increase in the cost to buy a new car. That'll show me.

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no

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Yep, lightweight. I told you Trump would try to tax the rich more. You cried and whined because youre a populist simpleton.

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Yep, lightweight. I told you Trump would try to tax the rich more. You cried and whined because youre a populist simpleton.

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Taxing the top income bracket is not taxing the rich. Increasing capital gains and eliminating the estate tax is. You ignorant moron.

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Look at this very simple man lying to get out of "being wrong" yet again.

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typical projection. You think just being in the top bracket for a portion of income makes you rich. That’s how I know you’re not nor will you ever be rich.


If you want to link me to you saying increasing the top bracket will occur and that is a tax on the rich before today….feel free. You won’t, though….and here I am. Catching you in yet another lie.

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. You think just being in the top bracket for a portion of income makes you rich.

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Yes it does.

It doesnt necessarily make you the richest, but objectively you are rich.

There is a difference between Rich and Wealthy, I suggest you populists learn it now...

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Yes it does.

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it absolutely does not.

I noticed you didn’t link to this prediction you claimed to have made. I’ll ask again. Please link us all to you predicting the top income bracket would increase and that is a tax on the rich.


Your failure to do so proves that, once again, you’re lying. Pathetic.

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Whine, cry and blame. Like he always does.

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Perfect. Finally someone is honest. (Very surprising it’s you). So the dictator won’t use government. Tell all your commie buddies in this thread to stop the gnashing of teeth.

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Bonds is wrong again, and crying trying desperately to change the subject.

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Waiting on that link. You’re the one who claims to have warned us. Show us where. Liar.

Shouldn’t be too difficult. The rate was 39.6 prior to the TCJA. So please point us to your big prediction of Trump going after the rich by allowing the rate to sunset. We are all anxiously awaiting.

ETA: just to clarify. Roger is claiming that an effective rate increase of about 1- 2 percent is the big tax on the rich he predicted was coming. Amazing isn’t it?!

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Heres a way to lowers costs…eliminate dealerships. Straight to consumer with a set price.

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As much as I loathe pulling into a car lot, im not sure eliminating over a million more jobs would be a winning issue