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

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Notice how they avoid things like BCreed posted about Reagans tariffs on autos.

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Let to great innovation in the Japanese mfgrs who in turn blew away the American competition.

The way around quotas is to add value, which is exactly what Japan did and very successfully.

The US quotas on Japanese cars were anti American consumer, we produced the shittiest cars of all time in the 80s.

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The car quota that cost Americans
Winston has studied the impact of one of Reagan's first trade tactics against Japan -- a quota imposed in 1981 on the number of Japanese cars that could come into the U.S. every year. It was meant to give American car companies like Ford (F), GM (GM)and Chrysler (FCAU) some breathing room from foreign competitors like Toyota and Nissan.

It came at a time when the U.S. economy was in recession in the early 1980s, unemployment was rising towards 10% and inflation was high. U.S. companies were looking for any help they could get.

One result of the new trade restrictions against Japan was that American car companies hiked up car prices, pulling in record profits at the time, Winston found. They didn't have to fear losing customers to Japanese car companies.

U.S. car makers also lowered production in 1984 to help boost car prices. Less production meant fewer workers: America lost over 60,000 auto jobs between 1982 and 1984 due to the trade restrictions, according to Brookings.

Consumers got hit hard. The average car price rose by about $1,000 at the time.

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LINK

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CCP

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Not conservative.

I know this destroys your little bubble..

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You complained because tariffs were going to increase prices. Now, you're complaining because Trump is working to not increase prices.

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Through central planning, which is far left.

Not through market forces, which is far right.

Yall are simply Democrats pretending

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Yikes. Not even a basic understanding of the facts. He was telling US automakers the White House would look down on prices increasing. The tariffs are on foreign auto makers.

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Its pretty obvious to me who doesn't have a basic understanding of the facts.

BBonds


And since you have been asking just what Trump can do if the automakers tell him to pound sand and raise their prices instead of losing money on every vehicle they make, the EPA is under the Executive branch. The EPA is a tool he can use to frick them up 3 ways to Sunday.

That's just one way.

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No one is avoiding it. You are ignoring the fact Reagan's quotas cost American consumers.

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Yeah but it didn't. Every last one of you few can not see a total picture if it was shown to you 247!


You just aren't capable of of looking past your nose.

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FWIW, the Japanese were going to move some production to the US without the Reagan quotas. Labor costs for Japanese workers in the auto sector were higher than their American counterparts in the US in 1980. They wanted to capture that.

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I ignore nothing. I look at a complete picture.

Created 100k+ jobs and around 150k with supporting. They continue to expand.

The Japanese gov heavily substized their industry.

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What these globalists in this thread are doing is sky screaming. Some companies make 80% of their cars here and only some parts are effected.

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Name them. Then tell us why that's a good thing. Are you advocating for the US auto market to be truncated down to just a couple brands that escape most or all of the tariffs?

Data I saw, culled from NHTSA had one brand, Tesla, that fit your description. Other data indicated that Ford may be right at the 80% level. For Ford, all of their trucks are final assembly in the US, but much of the components are from overseas. So they'll be affected by this. And Tesla will still be affected even though 100% of their final assembly is in the US. Virtually every vehicle has components and assembly overseas.
Tesla CEO Elon Musk, in response to the announcement, wrote: "To be clear, this will affect the price of parts in Tesla cars that come from other countries. The cost impact is not trivial."

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Notice how they avoid things like BCreed posted about Reagans tariffs on autos. They don't like to talk about it because they can not wrap their minds around it working.

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Prices are going up. We just had record inflation with Biden and Trump is about to add to that.

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The Japanese gov heavily substized their industry.

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And we dont?

Why are you pushing to protect these woke arse corporations that takes advantage of you every step of the way?

Material costs haven't risen much but labor costs have over the last 5 years. The retired boomers have left a huge void in the blue collar workforce.

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He's forcing Americans to buy foreign cars with tariffs?

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Auto makers are forcing Americans to buy cars with higher prices?

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Do you also understand that all that needs to happen for the tariffs to go away is foreign countries getting rid of tariffs on our products?

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Incorrect. Less than that is necessary. All that needs to happen is for Trump to drop them.

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Huh? How are these the same to you?

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Because both are a choice.

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one is complete unnecessary greed. There's no reason to increase prices on US cars other than US automakers being greedy and at that point they wouldn't have a built-in advantage of having the best priced vehicles on the market.

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Again, I objected to that bullshite coming from the Biden administration. Did you, or were you in agreement then?

Here's a whole article about that same nonsense when Biden was the one spouting exactly the same thing: Companies Stop Gouging Consumers

Corporations have exactly zero obligation to only charge what you or Biden or Trump or anyone else thinks you "should" charge for their products. They made it, they get to decide what they are willing to take for it.

And since Trump's tariffs are going to increase their expenses (there is only one car company that makes all of the car in America—Tesla...hmmm—every other company is going to pay higher prices for parts), of course they are going to charge more. And since the "going rate" for cars is going to go up even more than the cost of their expenses, of course they are going to follow the "going rate" upward. To do anything but that would be to violate their fiduciary responsibility to their shareholders. It would literally be technically illegal to leave money on the table just because Sh Nuff thinks they should.

Since you're asking all of these questions, I'll ask you one.

You realize that the government setting the prices on goods is literally the definition of fascism, right? Trump isn't doing that (yet), but he's attempting to influence them.

Again, he's becoming exactly what his critics have accused him of being all along with stuff like this.