[Cannondale900]

Originally Posted by DocWeatherington

No idea how they will do it..see the words that came out of his mouth. Again we cant say this admin doesn't keep promises haha...

Listen to what he said...

He's said a lot of things between the campaign and now. I agree the administration is trying as hard as they can to follow through on many of these talking points.

Some of the initiatives, like increasing the tax on private endowments, is a strictly punitive measure toward a group of constituents they do not align with ideologically and politically. It's not a significant source of revenue.

All of these various initiatives impact constituents differently and may be the difference between a 'yes' and 'no' vote on a larger budget and tax package. Getting the votes in a thinly divided congress is the key.

I follow this stuff daily as part of my profession. On calls nearly every day with folks in D.C., lobbying firms, and consultants in the space.

There is a lot of spaghetti on the wall at the moment. What sticks and what doesn't will be interesting.

[CarlosM4]

Originally Posted by EUPremier

Global trade is a balance.
We buy your phones.
You buy our cars.
The whole thing is a disaster… it’s one thing to take on Canada or Mexico… the EU economy is massive and a trade war between the US & EU will be felt heavily on both sides… by Consumers.

Here is the thing though, EU taxes the hell out of everything imported (same as China, Russia, Brazil for that matter), and their products always get less tax in the receiving end (German cars in Brazil, get less tax (even with nearly 30% import tariff), than many exports Brazil makes to EU).

The trade game has been a mess for a while. I can't fault Trump for kicking back a little.

Plus that opened many opportunities to Brazil LOL

[CarlosM4]

Originally Posted by Cannondale900

He's said a lot of things between the campaign and now. I agree the administration is trying as hard as they can to follow through on many of these talking points.

Some of the initiatives, like increasing the tax on private endowments, is a strictly punitive measure toward a group of constituents they do not align with ideologically and politically. It's not a significant source of revenue.

All of these various initiatives impact constituents differently and may be the difference between a 'yes' and 'no' vote on a larger budget and tax package. Getting the votes in a thinly divided congress is the key.

I follow this stuff daily as part of my profession. On calls nearly every day with folks in D.C., lobbying firms, and consultants in the space.

There is a lot of spaghetti on the wall at the moment. What sticks and what doesn't will be interesting.

I am not involved in American politics in any way shape or form, but I work with international trade (my businesses both import and export). Not even COVID, has made supply chains and companies this tense.

Everyone is trying to figure out their way and workarounds this tariff mess. Nonetheless as someone who deals with taxation and bureaucracy worldwide, I think its pleasant that the US is finally kicking back to many nations who supposedly "want free international trade", but all they do, is tariff the f... out of every import, and sell their products with less tariffs elsewhere.

[supershaft]

Originally Posted by DocWeatherington

No idea how they will do it..see the words that came out of his mouth. Again we cant say this admin doesn't keep promises haha...

Listen to what he said...

A1 and robots will kill a bunch of jobs in the long run anyway..but this indirectly will create hundreds of thousands of jobs in manufacturing in the near short or long term.

The question will be what will companies and unions allows. It's the similar issue that shipping ports are facing..they could quickly automate ports

VW is laying off thousands in europe. do you think someone as big as VW is suddenly going to open a factory in the USA? Something that takes 5-10 years AT BEST? They could easily wait this moron out and judging by a lot of other manufacturers are going to be doing the same thing.

Unions will not allow ports to be automated. Short of a massive global recession that allows a reset. We're in some very dark and uncertain times ahead of us.

[DocWeatherington]

Originally Posted by Cannondale900

He's said a lot of things between the campaign and now. I agree the administration is trying as hard as they can to follow through on many of these talking points.

Some of the initiatives, like increasing the tax on private endowments, is a strictly punitive measure toward a group of constituents they do not align with ideologically and politically. It's not a significant source of revenue.

All of these various initiatives impact constituents differently and may be the difference between a 'yes' and 'no' vote on a larger budget and tax package. Getting the votes in a thinly divided congress is the key.

I follow this stuff daily as part of my profession. On calls nearly every day with folks in D.C., lobbying firms, and consultants in the space.

There is a lot of spaghetti on the wall at the moment. What sticks and what doesn't will be interesting.

Agree fully.. I will give props to the admin for trying new things . It's going to be interesting how this all settles.

It's like hooking up for the first time with a quiet stranger. To only find out they are kinky AF and have a sex dungeon with a room filled with toys, whips, chains and hot wax....plus makes a mean BLT with thick cut bacon afterwards.

Your like okay...this going to be bad but go along with it... as at that point your committed

[DocWeatherington]

Originally Posted by supershaft

VW is laying off thousands in europe. do you think someone as big as VW is suddenly going to open a factory in the USA? Something that takes 5-10 years AT BEST? They could easily wait this moron out and judging by a lot of other manufacturers are going to be doing the same thing.

Unions will not allow ports to be automated. Short of a massive global recession that allows a reset. We're in some very dark and uncertain times ahead of us.

VW already has a factory in US for its most sold models. Can VW retool add to the production line IDK.

https://en.m.wikipedia.org/wiki/List..._United_States

With that will VW want to add GTIs to the line vs a mid-size SUV that sells 8 to 2 probably not. With that I would see them only sending the top version golf R full send and letting everything else fade out until they figure something out. Trim the US lineups or figure out how to level costs across all lines or just drop us models temporarily if consumers dont buy them with the price increase.

Some brands will be hit harder and others won't. See the link above.

It's going to be the luxury brands that will eat it unless current factories have capacity and lines that can build xyb.

The bulk of VW group products arent even sold stateside.

[Gosephe]

Originally Posted by Skilly

yes and no. Tariffs are going to have wide reaching impact on them too just not at the end state. Unless X5 and ALL of its components are sole sourced in the US, its price to produce will increase dramatically, which will mean prices go up.

Not sure how "money will be pouring into our country" with a tariff. No getting around it; it's a tax on American people.

Exactly what the general opinion, at least for Europe and canada is.....
You know who to thanx for this...

Perhaps for us Europeans will be the only benefit that our M5 will be put forward in the production process (un)fortunately

[Skilly]

Ferrari is the first...they just announced a 10% price increase to offset the Tariff's.

[evanevery]

Tariffs on imported goods don't bring production into the country.

What import tariffs do, is add yet another tax on the consumers inside that country. ...and sales (tariff) taxes obviously effects the lower income folks more than the upper income folks as this consumes a larger portion of their income.

Do domestic companies take the time to improve their manufacturing base? No, policies like this are just too fickle that anyone will rely on them. They just raise their prices to basically meet the new increased market "price" established by the tariffs.

No point in throwing away all that short-term easy profit, right?

[iifymbro]

Originally Posted by evanevery

Tariffs on imported goods don't bring production into the country.

What import tariffs do, is add yet another tax on the consumers inside that country. ...and sales (tariff) taxes obviously effects the lower income folks more than the upper income folks as this consumes a larger portion of their income.

Do domestic companies take the time to improve their manufacturing base? No, policies like this are just too fickle that anyone will rely on them. They just raise their prices to basically meet the new increased market "price" established by the tariffs.

No point in throwing away all that short-term easy profit, right?

yeah they should've focused on attracting them with positives instead of punitive tariffs imo, make them want to setup shop in the U.S for reasons other then avoiding a big tariff

[soulsea]

Fwiw, this is what Ferrari is doing for now. They'll eat the entire tariff on some models and increase 10% on others whilst eating the other 15%. How long they can sustain this is unknown.

I'm guessing all these import heavy companies will do something similar in the short term.

[c63er]

This is just more of the same idiocy of a great country in decline (seemingly rapid).

Let’s be direct here, have you commonly seen any consumer good ever come DOWN in price?

Once a price for something goes up (for any reason) it stays there. Ie. Inflation.

You can argue in either direction about the pros and cons of tariffs. It does not matter. The proof is in the pudding. In this case the price of foreign cars will go up.

Permanently.

Let’s say tariffs are eliminated in a year. The companies have no incentive to significantly drop prices once they have gotten used to the new pricing reality. They will at best improve or add features to the product to justify the price. Many times they will not even do that because they know their customers have proven a higher pricing tolerance (ie. Porsche)

And so, bmw will simply adjust to the realty of lower units sold but with same overall profit and simply pocket the difference.

Producer gets richer, consumer gets poorer. That would ok if anyone here or that you know was a producer. However that is extremely unlikely as the economy has been dramatically reconfigured over the past 20-25 years to make sure you do not have much of a hand or benefit on the producer side. You are all sadly consumers.

Inflation 101

The next argument is that foreign cars are not a core necessity, therefore the market will adjust and there would be no inflation. That is of course falacity proven every single day in the USA. This is a wealthy nation with an appetite for foreign goods and that will not stop. Sure if this was a poor country then there is a very valid and strong reason for protectionist tariffs. In that situation it makes a lot of sense. (Think late 1800s and early 1900s America for good measure).

So in summary, tack this onto the long list of bad ideas in recent years which have given us perm-inflation, which include $600 check to all citizens, 2008 bailout, PPP loans, low interest rates and now tariffs.

The innocent and good natured people out there will say these are just misguided mistakes. America does not make mistakes in my opinion. This is a brilliant country. Therefor, this is purposeful stripping of the economy.

Next up look for other interesting ways to ruin the economy. Maybe not low interest rates this time as the smart have learned to keep their defenses up on that front. But there is certainly more “free money” coming to us in enticing forms which in reality will further ruin the economy and make life more difficult.

Inflation is your #1 enemy as it devalues the power of your personal effort/work. Taxes, loans, interest rates do not even compare to inflation in regards to the devaluation/dehumaization of you as an individual. Never forget that, and keep your eye on the ball. This is a direct assault on every single one of us just as the aforementioned other forms of “free money” did exactly that. This will continue so you must keep your whits about you and resist the siren song of inflation. Remeber we want to import cars from Europe. Not bad economic ideas from them

[Cannondale900]

Originally Posted by DocWeatherington

Agree fully.. I will give props to the admin for trying new things . It's going to be interesting how this all settles.

It's like hooking up for the first time with a quiet stranger. To only find out they are kinky AF and have a sex dungeon with a room filled with toys, whips, chains and hot wax....plus makes a mean BLT with thick cut bacon afterwards.

Your like okay...this going to be bad but go along with it... as at that point your committed

If your analogy is by way of your personal experiences, the rest of us may have some friends that wonder where you tend to hang out LOL.

[Bluex]

Heard from my CA regarding this and he said his GM is meeting with BMWNA tomorrow (Friday) regarding this subject and they hope to get very specific guidance on what’s happening then.

For now he said the “feeling” is that cars already produced and awaiting transport will not have an increase passed along by BMW, regardless if they come into the US post-April 3rd

It’s vague and not a complete answer, and as of now just a “feeling”, but it’s something.

[DocWeatherington]

Originally Posted by Cannondale900

If your analogy is by way of your personal experiences, the rest of us may have some friends that wonder where you tend to hang out LOL.

Haha what happens out of country stays out of country haha

[DocWeatherington]

Originally Posted by soulsea

Fwiw, this is what Ferrari is doing for now. They'll eat the entire tariff on some models and increase 10% on others whilst eating the other 15%. How long they can sustain this is unknown.

I'm guessing all these import heavy companies will do something similar in the short term.

The question is how much profit is in a a Ferrari and whats 10 to 15% for the customer base buying a 300k car..thats a carbon fiber pack

[DocWeatherington]

Originally Posted by Bluex

Heard from my CA regarding this and he said his GM is meeting with BMWNA tomorrow (Friday) regarding this subject and they hope to get very specific guidance on what’s happening then.

For now he said the “feeling” is that cars already produced and awaiting transport will not have an increase passed along by BMW, regardless if they come into the US post-April 3rd

It’s vague and not a complete answer, and as of now just a “feeling”, but it’s something.

Normally if its already produce most won't play with the pricing as some of these cars will get stuck at port for months.

I think BMW likely won't screw folks with anything built pre tariff date ...post that msrps are going up but perhaps bmw will adjust packaging and up standard equipment or give better MF to keep these models moving.

This may so benefit people with residual values as well on used cars

[Crazy1323]

My assumption is that car manufacturers believe that the subsequent administration will not keep these tariffs, so it becomes a “waiting out the storm” situation.

It is not feasible to invest billions in manufacturing in the US for these tariffs to go away in no more than 4 years. It is cheaper for the company to gauge the market and figure out how much they can pass on to US consumers and how much they have to eat themselves.

If this were the beginning of Trump’s first term and there were likely 8 years of tariffs that changes the math.

[iifymbro]

Originally Posted by Crazy1323

My assumption is that car manufacturers believe that the subsequent administration will not keep these tariffs, so it becomes a “waiting out the storm” situation.

It is not feasible to invest billions in manufacturing in the US for these tariffs to go away in no more than 4 years. It is cheaper for the company to gauge the market and figure out how much they can pass on to US consumers and how much they have to eat themselves.

If this were the beginning of Trump’s first term and there were likely 8 years of tariffs that changes the math.

dangerous gamble to make cause republicans could easily win again, they have a better bench then the democrats. Depends how good things are going a few years from now

[Crazy1323]

Originally Posted by iifymbro

dangerous gamble to make cause republicans could easily win again, they have a better bench then the democrats. Depends how good things are going a few years from now

I think the next administration (republican or democrat) will likely roll these back.

[masd79]

Originally Posted by Bluex

Moot huh? Do you currently have an M5 at the Bremerhaven port waiting to come over? Have you configured your car, negotiated a deal and have waited excitedly for this M5 to arrive in just a few weeks time only to be struck with the possibility of a 25% tax being added to the price? (Because despite rumors there is no word yet on whether BMW will absorb anything yet for existing orders on this round of tariff affected vehicles….hopefully they will)

Are you in the position where you may have to not accept the vehicle because you can’t afford to or won’t pay a 25% tax?

If you answer yes, great on you. You clearly must have such deep pockets where this is all trivial “let them eat cake” bullshit.

But if the answer is no you don’t and aren’t in the position that many of us are in right now, it’s damn easy for you to say that you don’t have any problems with it and it will all come out in the wash.

I’ve waited awhile for this car, was excited for a delivery in a few weeks, was paying cash for the car and now I may just have to cancel the whole deal and keep that $140k instead of spending it.

But hey, my man, glad it’s all good to you.

Go get one sitting at a dealership today and enjoy the positive equity Monday ..a friend went and grabbed a $95k i5 m60 for $700/month with zero down, I saw a frozen one sitting on the lot collecting pollen. They said they would give you a huge discount if anyone asked interested. Dm me

[CarlosM4]

Originally Posted by Crazy1323

I think the next administration (republican or democrat) will likely roll these back.

Unlikely. More tariffs = more money for the government. Given how broke and in debt the US government (all governments truth be told) don't expect it to be rolled back.