Potential impact of tariffs
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Potential impact of tariffs
Pretty please don't delve into politics as will eliminate the ability to discuss the topic.
Although I have been researching for quite a while, I was motivated to go ahead and buy due to potential price impact of future tariffs. Also just bought two steel buildings for the same reason, except their prices are already headed up. Other motivation for my timing is finally learning the details of the diesel.
Anyone else alter the timing of their purchase due to this?
Although I have been researching for quite a while, I was motivated to go ahead and buy due to potential price impact of future tariffs. Also just bought two steel buildings for the same reason, except their prices are already headed up. Other motivation for my timing is finally learning the details of the diesel.
Anyone else alter the timing of their purchase due to this?
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I was planning to purchase now, so placed an order for exactly what I want and locked in the price. Just wondering exactly what will be impacted by tariffs on domestic trucks. I know all the uproar over Harley and the new plants was all overblown and fake news, they had already closed plants and had plants in other countries already under construction long before tariff was even brought up, so wondering if all this talk of prices going up will also fall under the sensationalism.
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From: OBX
Domestic automakers will be impacted in that everything that isn't made in America with American raw materials will likely see an increase in cost. Whether that's the steel for the frames and axles, the aluminum for the body, all of the various modules and switches made in China, the tires made in Korea, etc, they will all see an increased cost to the manufacturer which will get passed on to consumers.
And before anyone says just buy American steel/aluminum, they have been making all they can and it takes a while to get a new plant going, even if the ore was available.
And before anyone says just buy American steel/aluminum, they have been making all they can and it takes a while to get a new plant going, even if the ore was available.
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The real problem isn't in making new plants, its the labor costs that make American steel and aluminum more costly. Same holds true for the electronics and other assemblies. That is where other countries have us beat. Only way around it is more automation. I am fairly sure the tariff talk is to get other countries to the table and start negotiating for more equality in tariffs. The US has always been low tariff since WWII to help european countries get back on their feet, then they turned around and raised tariffs on US goods. Pretty sad when tariff on a Harley is 100%, makes it very hard to compete in foreign trade at that rate. All for equality in trade, but is this the right way, or is there another solution to the mix? Only time will tell.
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Our trucks are a freaking bargain by weight. Ha ha. I needed to buy mine so I didn't lose any more on my trade, but it was a good timing to avoid whatever increase will come from that stupidity. Guess the days of a heavy steel ball mount, ball, and pin for $18 shipped from Amazon will be over soon. He he.
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From: Raleigh, NC
from march:
http://www.businessinsider.com/trump...-trucks-2018-3
On Thursday, the Trump administration announced a tariff on imported steel and aluminum, signaling a willingness to start a trade war so that that the President could keep a campaign promise.
The response from US steel- and aluminum makers was swift and positive, although it's worth noting that the aluminum industry in the country has been in steady retreat since 1980.
Automakers who use a lot of steel and aluminum in their vehicles were either quiet or diplomatic, even as slower February sales compared to a year ago and the Trump announcement send the entire sector's stock prices into decline.
"We purchase over 90% of our steel for US production from US suppliers," General Motors said in an emailed statement to Business Insider.
Ford also said that it buys much of its raw materials domestically for US production, but added that higher steel and aluminum costs could hurt the competitiveness of US companies, CNBC's Phil LeBeau reported.
The automaker has shifted to using more lightweight aluminum in its bestselling, highly profitable F-Series pickup trucks. Shedding weight helps the company meet more stringent federal fuel-economy standards.
Carmakers aren't in the dark about changes to commodity pricing. Earlier this year, Ford CFO Bob Shanks said that the company was preparing to for higher commodity costs to hit its bottom line.
Of course, for reliable Ford pickup truck buyers concentrated in states that Trump carried in 2016, tariffs could simply mean a costlier set of wheels. The idea is that steel and aluminum manufacturers will pay Trump back with hiring. Tariffs might have some effect on the steel business, but on aluminum, it's improbable. There are just two operational smelters in the entire country; over half of the US supply is imported.
The response from US steel- and aluminum makers was swift and positive, although it's worth noting that the aluminum industry in the country has been in steady retreat since 1980.
Automakers who use a lot of steel and aluminum in their vehicles were either quiet or diplomatic, even as slower February sales compared to a year ago and the Trump announcement send the entire sector's stock prices into decline.
"We purchase over 90% of our steel for US production from US suppliers," General Motors said in an emailed statement to Business Insider.
Ford also said that it buys much of its raw materials domestically for US production, but added that higher steel and aluminum costs could hurt the competitiveness of US companies, CNBC's Phil LeBeau reported.
The automaker has shifted to using more lightweight aluminum in its bestselling, highly profitable F-Series pickup trucks. Shedding weight helps the company meet more stringent federal fuel-economy standards.
Carmakers aren't in the dark about changes to commodity pricing. Earlier this year, Ford CFO Bob Shanks said that the company was preparing to for higher commodity costs to hit its bottom line.
Of course, for reliable Ford pickup truck buyers concentrated in states that Trump carried in 2016, tariffs could simply mean a costlier set of wheels. The idea is that steel and aluminum manufacturers will pay Trump back with hiring. Tariffs might have some effect on the steel business, but on aluminum, it's improbable. There are just two operational smelters in the entire country; over half of the US supply is imported.
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From: Lost Wages
Domestic automakers will be impacted in that everything that isn't made in America with American raw materials will likely see an increase in cost. Whether that's the steel for the frames and axles, the aluminum for the body,
Since the price of imported steel and aluminum will go up 25/10%, domestic producers will be free to raise their prices to match. That's business.
But if you really want something to worry about, it is this. The US has had a 25% tariff on imported light trucks for over 50 years. If you screw with the current tariff situation, you can have unintended consequences, and if you renegotiate, everything is open to negotiation, including the 25% tariff on truck imports.
Think I'm kidding? https://www.forbes.com/sites/doronle.../#73b01c561cf2