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Title: Will the Trump tariffs substantially increase the cost of vehicles and stoke inflation?
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URL Source: https://www.americanthinker.com/blo ... icles_and_stoke_inflation.html
Published: Mar 31, 2018
Author: Jack Hellner
Post Date: 2018-03-31 18:58:12 by Justified
Keywords: None
Views: 4501
Comments: 57
It's amazing. Even a topic as dry as tariffs gets the press's bias wheels turning. Here's one example, from Reuters: Toyota Motor Corp said on Friday U.S. tariffs on imported steel and aluminum would substantially raise costs and therefore prices of cars and trucks sold in America. "The (U.S.) Administration's decision to impose substantial steel and aluminum tariffs will adversely impact automakers, the automotive supplier community and consumers," the automaker told Reuters. Toyota added that more than 90 percent of the steel and aluminum purchased for cars built in the United States is sourced from the country. Substantially? In making this claim, somehow, the reporter did not ask Toyota what the substantial cost increase would be. I would think that would be a valuable piece of information, since the average price of a car or truck today is around $36,000. So I thought I would do some research to find what "substantial" means. The current price of steel is around $800 per ton, and the price of aluminum is 97 cents per pound. The average car uses around one ton of steel and close to 400 pounds of aluminum. The average truck uses around one and one half tons of steel and just under 400 pounds of aluminum. So if the price of the steel in a car went up the whole 25%, which it won't, and the price of aluminum went up the entire 10%, the cost would go up by about $240, or less than five tenths of a percent. The cost of a truck would go up around $340. According to Edmunds, the average car loan today is six and a half years. or 78 months, so the average payment would be up around $3 per month because of the tariffs, or 10 cents a day. Since people keep their cars for a long time, the tariffs will add little to overall inflation. Thank goodness Trump gave a big tax cut, which will more than cover that. Canada is pitching a fit about the tariffs, but the Canadians have many controls on imports from the U.S. Here are a couple of examples. Canada uses supply-management systems to regulate its dairy, chicken, turkey, and egg industries. The regime involves production quotas, producer marketing boards to regulate price and supply, and tariff-rate quotas (TRQs) for imports. Canada's supply-management regime severely limits the ability of U.S. producers to increase exports to Canada above TRQ levels. Under the current system, U.S. imports above quota levels are subject to high tariffs (e.g., 245 percent for cheese, 298 percent for butter). Canadians face high provincial taxes on personal imports of U.S. wines and spirits upon return to Canada from the United States. When the government calculates the growth in the economy, it reduces the growth if there is a trade deficit. That certainly suggests that the overall deficit is bad and that a goal to improve the growth in the U.S would be to reduce the deficit, which is what Trump is trying to do. If Trump just added the tariffs on China, China would just ship the steel to other countries, particularly other countries with free trade agreements with the U.S., and then those countries would ship the Chinese steel to the U.S., so it wouldn't solve the problem of dumping. The United States has the world's largest trade deficit. It's been that way since 1975. The deficit in goods and services was $566 billion in 2017. Imports were $2.895 trillion and exports were only $2.329 trillion. President Trump has been handed many significant problems that have built up for many years – and, in many cases, decades. These problems include but are not limited to: The massive trade deficit, a slow economy, high taxes, too many regulations, North Korea, ISIS, Russia, China, out-of-control health care costs (because of Obamacare), the opioid crisis, the unconstitutional Deferred Action for Childhood Arrivals (DACA), and unchecked illegal immigration as a whole, along with lawless sanctuary cities and states. Thank goodness President Trump and the people he hired with business experience are used to working on many projects at one time and strive to produce results as fast as possible instead of slogging through the massive bureaucratic process. The tariffs on steel are just one part of it.
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#1. To: Justified (#0)
Anheuser-Busch The aluminum used in beer cans is expected to get more expensive once the tariffs go into effect. Anheuser-Busch (BUD) has warned that it could threaten manufacturing jobs in the industry. The company employes more than 18,000 people in the United States. Auto parts manufacturers The Motor & Equipment Manufacturers Association, which represents companies that make vehicle parts in the United States, has said the tariffs will make cars more expensive and could put the many of the more than 800,000 jobs in its industry at risk. Boeing The nation's largest single exporter uses aluminum and some steel parts to make planes. Boeing (BA) could also suffer if other countries decide to retaliate against US tariffs by buying planes from competitors like Airbus. The company has more than 140,000 employees in the United States and around the world. Caterpillar Making Caterpillar (CAT) construction equipment could get more expensive if steel and aluminum prices rise. The company employs more than 98,000 full-time workers around the world. About 42,000 are in the United States. Campbell Soup Company Commerce Secretary Wilbur Ross has said that there's 2.6 cents worth of steel in a can of Campbell's soup, and consumers can expect prices to rise less than one cent as a result of tariffs. Campbell's (CPB) responded that "any new broad-based tariffs on imported tin plate steel — an insufficient amount of which is produced in the U.S. — will result in higher prices on one of the safest and more affordable parts of the food supply." Campbell's has about 18,000 employees. Craft breweries Craft breweries, which have been a breakout success over the past few years, worry that future growth will be stunted if beer cans get more expensive due to higher aluminum prices. Oskar Blues, a Colorado-based brewery with operations in North Carolina and Texas, said tariffs would put "a strain on the business." DowDuPont An executive at the chemical company told Bloomberg that it might need to start building plants in Canada or Argentina if the cost of construction goes up too much in the United States. DowDuPont (DWDP) has approximately 98,000 employees. Ford Ford (F) uses steel and aluminum in car production. Ford said in a statement that the tariffs "could result in an increase in domestic commodity prices — harming the competitiveness of American manufacturers," though it mostly uses American-made steel and aluminum in vehicles manufactured in the United States. Ford has about 202,000 employees worldwide. General Electric GE (GE) makes jet engines, power plant turbines, trains and other heavy machinery, all of which use steel and aluminum. Higher costs could inflict further damage on a company that already faces serious financial troubles. GE said in a statement that it's monitoring the situation but expects the impact to be "minimal." GE has about 313,000 employees total. About 106,000 are in the United States. General Motors GM (GM) cars contain steel and aluminum, though the company says that more than 90% of the steel it uses to make cars in the United States comes from American suppliers. It has more than 180,000 workers around the world. Molson Coors The maker of Coors Light and Miller Light has said that it makes an "increasing" number of beers in aluminum cans. Rising prices will "likely to lead to job losses across the beer industry," the company said on Twitter. The company has 17,200 employees globally, about 7,900 of which are in the United States. Oil companies Members of the oil industry have warned that Trump's steel tariffs could derail the country's energy boom by raising prices on foreign steel, which oil companies use in drilling and production, as well as in pipelines and refineries. Canary LLC, a Denver-based oilfield services company that employs about 300 people, said higher costs could force it to lay off up to 17% of its US workers. Whirlpool Whirlpool (WHR) recently got a boost when Trump slapped tariffs on imported washing machines. Now it could get more expensive to make household appliances like dryers and refrigerators in the United States as metal costs rise. Whirlpool has about 92,000 employees.
Yup. How to stop it is more strategic than tactical. This takes brain-power. Trump operates from neither position other than a "tweet."
Hyper bs from those screwing America. We will not lose one more job than created. Then we will have people paying taxes instead of being a tax burden. Its a win win win!.
There's roughly 3 cents of aluminum in a can of beer. If you put a 10-percent tariff on that, that's 3/10ths of a cent per can, or 1.8 cents per 6-pack. Meaning, the price of a Budweiser 6-Pack goes from $6.20 to $6.22. If you can't afford the increase, switch to bottles.
Trump has out done everyone and you guys still can't acknowledge what he has done in only one year. Doing all that he has done fighting the whole MSM and the power brokers in his own party. Yes his tweets keep little minded people occupied with nonsense! We have gone from pubs playing checkers while demoncrats playing chess to Trump playing 3d chess! Its funny to watch!
Nope. Other countries will negotiate with the U.S. rather than getting into a tariff war. Because they know Trump's right -- we've been getting screwed.
I'm thinking he has skin in the game and getting reamed bad or a he is not from America? If you are a middle class citizen you thank God each day for Trump! LOL
"Blanket tariffs on steel and aluminum imported into the U.S. are likely to keep driving up domestic metal prices that have already been on a tear. Rising prices globally and dozens of tariffs the U.S. has already applied to individual countries and products have discouraged foreign producers from selling cheap metal in the U.S. The strong U.S. economy and a rebounding oil-and-gas industry have also driven up domestic demand. The tariffs of 25% on foreign steel and 10% on foreign aluminum that President Trump said he will enact next week will likely push up domestic prices even further. "
Oh ... you mean, his "tweets." Does that sound "presidential" to organize the best minds in America for strategic and tactical based thinking?
OMG pennies on a thousand dollar or more product. Oh the humanity of it all! You crying about 1% of 1%! Translate that into money a homeless person would not get up and walk 5 ft to pick that kinda money up from the sidewalk! In return we get a proper deal that puts America as a whole first! Why do you work so hard to stop it? Whats wrong with America first?
Are you suggesting that there is a serious game of class warfare in America?
Was Obummer presidential? Bush's act presidential while screwing America. Give me an asshat for president that works for America. He still mobs the floor with everyone and he does this for America. Whats so bad about that?
tweets?
OMG, try understanding the difference between finished products and raw materials, Idiot. The tariff is on the raw materials used by American MANUFACTURERS. But then neither you and Donny Drumpf ever manufactured anything other than bullshyte so... it not surprising you can't comprehend the difference.
I'm not the one not getting it. Steel is not a product?
The issue is the added value (sometimes known as a multiplier of cost) through the supply chain; you have this concept dead on right VxH.
When msm will not quote your honestly and lie about everything. Tweet is the only way to get to the people and you have a problem with this method? Me thinks you have an ulterior motive!
Yup. The can has been kick down the road for over 25 years. Trump finally picks it up before the US becomes a Slave-State to China. Reflexively, delusional Democrats and limousine liberals are whining on cue. They are burying their head in the sand, again believing in their Cult if Kumbaya. It is essential that America re-develops our own steel and other industries. Lest we be blackmailed.
If you'd ever actually manufactured anything you'd know it's a raw material. But you haven't.
Why even bother??
BULLSHIT
The man is POTUS not some bum off the street.
Today, if it comes back online... http://www.cpr.org/news/story/pueblo-steel-mill-bought-russian-firm It will be managed by Russians. Go figure.
What's your point here? Yes, before the GAIN, there will be PAIN. Do you know what the alternative is? Sooner or later we gad to deal with a China who considers the USA the only thing standing in the way of world beholden to China's military and economic power. Donald Trump is the ONLY President the US has had since Reagan who didn't possess a pair of ovaries. OR was a Globalist.
No a product is a product which is consumed by someone. It may be the beginning or the end product. It still comes back to foreign products are not taxed by the US and domestic products are. Why is that so hard to get?????
Doesn't surprise me... This is one reason we've got to get a handle on this ASAP.
OMG you have to a mental patient!
You don't know SHIT about the added value of each operational step through the supply chain + TAXATION. Trump fucked America; the equity markets prove it.
Alternative? There is no alternative to the gradual decline of the PetroDollar in the context of peak oil and Russian / Chinese oil pipelines. A tariff on raw materials that screws what remains of american manufacturing in the process won't change that.
People only worry about frilly things when they disagree with something. Yes he is an asshat who cares? Would you rather get taken by a smooth talker or paid by an asshat?
Consumers don't by aluminum or steel stock. Manufacturers do.
Yes he is an asshat who cares? Would you rather get taken by a smooth talker or paid by an asshat? What the HELL are you talking about now?
I understand more than you do. One thing you guys forget is lost jobs and tax burden that must be picked up by others while we support foreign companies and countries! I understand the cost of doing business. If everyone is stuck with the same cost its the cost of doing business. But if one group is allowed to skirt the law then it harms the honest business. Its America first everyone else second. You want cheap shit go to china and then you will find out its not cheap when you can not afford it on slave labor.
OMG who gives a rats ass? Do we not make steel and aluminum here in America???? Its right vs wrong. Tax people equally! Why do you want to support foreign companies on the back of tax payers???
Oh so, just add the taxes on to the consumer, correct? Have you ever heard of Laissez-faire?"
Anybody whose actually manufactured anything and had to buy raw materials. But not you.
The fact that msm lies about what Trump says and what he has done. The only way to get at them is through tweets? Trump calls them out for lying and they are upset and you are too?
So you only care about some people not all people equally? So its okay to buy foreign untaxed raw materials because its not the finial product to the finial consumer? Think about that for a second! Whats to say a radio that goes into a car is a raw good and you can buy it from say china untaxed instead of buying an American radio that is heavily taxed since its not the finial product because the car is the final product! /eye roll
Do we not make steel and aluminum here in America???? You're amazingly ignorant. This is a list of countries by aluminium production in 2016.[1]
I wouldn’t debate with those two shit stains. They’re paultards. Paultards by definition must hate anything that isn’t paultard... and that includes Trump.
I'm the infidel... Allah warned you about. كافر المسلح
Comments (41 - 57) not displayed.
Top • Page Up • Full Thread • Page Down • Bottom/Latest
#2. To: Justified (#0)
The United States has the world's largest trade deficit. It's been that way since 1975.
#3. To: VxH (#1)
#4. To: VxH (#1)
The aluminum used in beer cans is expected to get more expensive once the tariffs go into effect.
#5. To: buckeroo (#2)
#6. To: Justified (#0)
Will the Trump tariffs substantially increase the cost of vehicles and stoke inflation?
#7. To: misterwhite, VxH (#4)
#8. To: Justified (#7)
(Edited)
https://www.marketwatch.com/story/new-tariffs-to-raise-steel-aluminum- prices-2018-03-02
Any US Manufacturer who makes things out of Aluminum or Steel will be impacted.
#9. To: Justified (#5)
Trump has out done everyone and you guys still can't acknowledge what he has done in only one year. Doing all that he has done fighting the whole MSM and the power brokers in his own party. Yes his tweets keep little minded people occupied with nonsense!
#10. To: VxH (#8)
#11. To: Justified, misterwhite, VxH (#7)
If you are a middle class citizen you thank God each day for Trump!
#12. To: buckeroo (#9)
Oh ... you mean, his "tweets." Does that sound "presidential" to organize the best minds in America for strategic and tactical based thinking?
#13. To: Justified (#12)
#14. To: Justified (#10)
(Edited)
#15. To: VxH (#14)
The tariff is on the raw materials used by American MANUFACTURERS.
#16. To: VxH, Justified (#14)
OMG, try understanding the difference between finished products and raw materials ...
#17. To: buckeroo (#13)
#18. To: Justified (#0)
President Trump has been handed many significant problems that have built up for many years – and, in many cases, decades.
#19. To: Justified (#15)
#20. To: buckeroo (#2)
This takes brain-power. Trump operates from neither position other than a "tweet."
#21. To: Justified (#17)
Tweet is the only way to get to the people and you have a problem with this method? Me thinks you have an ulterior motive!
#22. To: Liberator (#20)
#23. To: Liberator (#18)
It is essential that America re-develops our own steel and other industries.
I always enjoyed seeing the steel mill in Pueblo running when we drove past on Boy Scout camping trips back in the 60's/70's
#24. To: VxH (#1)
#25. To: buckeroo, VxH (#16)
#26. To: VxH (#23)
#27. To: buckeroo (#21)
Tweet is the only way to get to the people and you have a problem with this method? Me thinks you have an ulterior motive! BULLSHIT
#28. To: Justified (#25)
#29. To: Liberator (#24)
(Edited)
Do you know what the alternative is?
#30. To: buckeroo (#22)
#31. To: Justified (#25)
#32. To: Justified (#30)
People only worry about frilly things when they disagree with something.
#33. To: buckeroo (#28)
#34. To: VxH (#31)
Consumers don't by aluminum or steel stock. Manufacturers do.
#35. To: Justified (#33)
I understand the cost of doing business.
#36. To: Justified (#34)
OMG who gives a rats ass?
#37. To: buckeroo (#32)
#38. To: VxH (#36)
Anybody whose actually manufactured anything and had to buy raw materials. But not you.
#39. To: Justified (#34)
Rank Country/Region Aluminium production
(thousands of tonnes)— World 57,600 1 
People's Republic of China31,000 2 
Russia3,580 3 
Canada3,250 4 
India2,750 5 
United Arab Emirates2,400 6 
Australia1,680 7 
Norway1,230 8 
Bahrain970 9 
United States840 10 
Iceland800 11 
Brazil790 12 
Saudi Arabia740 13 
South Africa690 14 
Qatar640 — Other Countries 6,240
#40. To: Justified (#37)
(Edited)
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