r/WallStreetbetsELITE • u/stresskillingme • 9d ago
MEME How much will Trump's 25% tariffs cost the U.S. automotive sector?
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u/Mother_Class_529 9d ago
He said “billions” a billion times Jesus
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u/unfvckingbelievable 9d ago
It was like billions, and billions.
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u/cyrixlord 9d ago
he's no Carl Sagan, that's for sure
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u/Zerozer06 8d ago edited 8d ago
There are ten, billion billion billion billion billion billion billion billion billions particles in the universe, that you can observe,
Your mama took the ugly ones and put it into one nerd.
Edit : eh, mixup on my part. Close enough though and worth a rewatch
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u/Adventurous_Mix_8533 9d ago
Yeah but the billions and billions come from Americans as they are import tariffs meant to make foreign goods less attractive so companies will move to the US. He expects to make the money because Americans will still buy it. Some industries you will have no choice but likely buy less. If you don’t buy it because it’s too expensive and there are alternatives. If you don’t buy external good there is no extra money but again when he’s so proud he’s talking about your money he’s taking.
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u/ColeBane 9d ago
he thinks he is so super clever for creating an "invisible" tax on the public to magically generate billions. But the thing is, long term it will destroy our entire way of life and our economy, short term...it will never achieve his goal of billions and billions. There is no win here for anyone. Not even himself, unless he takes advantage of the tariffs and pumps and dumps stock after he recinds the tariffs and the stock goes back up. Which could be a way for the few very rich americans to make even more money for...god know what reason, they dont fuking need it obviously. But hey...lets play games with peoples lives and put the economy and future of america at risk just to make a few million in stock gains every few months on a tariff pump and dump scheme...holy shit this country is being run by a den of thieves man and its sooooo pathetic and sad.
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u/Beautiful-Tea-8067 9d ago
I don't think there is a scheme to put tariffs just to profit from stock market moves.
Beside that there is a very long trend of trade deficit for the US. And it can't go on forever. It's linked to dollar expansionist monetary policy and de facto domestic debt, which can last only as worldwide economy also expands.
I think some people in Trump admin genuinely understood that and want reverse its course. But they don't know how to do it whitout making it painful. That I think, explains back and forth in Trump tariff plans.
Trump himself could not come with a good idea his whole life and only try to enrich himself from his POTUS position. He would sign any EO his advisers would put under his nose after a 10 seconds briefing on the matters covered by the EO.
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u/Thyg0d 9d ago
In this case he actually hits Europes auto industry which hurts a bit in Germany. Got to give him that. I just hope Europe stands up and hits back, a lot.
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u/Mercury-68 9d ago
This is actually funny as it shows exactly how dumb he is.
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9d ago
It's funny cause it shows he's been saying this, the same way since he was in his 30, which just shows how big of a liar he is
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u/Doubleoh_11 9d ago
The person that put the time into getting the timing right on this video nailed it
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u/PromotionObvious5692 9d ago
I waited to the end to hear him finally say dollars but he never did :/
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u/Morepork69 9d ago
He has his phrases and key words. Lock her up, build a wall, tariffs. Billions was one I'd missed. I bet the clowns that voted for him couldn't write a numerical billion if they tried.
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u/TrumpDickRider1 7d ago
Funniest thing today. My maga loving step father misread 6 million as 6 billion and then argued over it until it clicked. Probably like 2 minutes of him looking at it before accepting defeat.
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u/hmturboman 9d ago
Somebody should ask the CEO’s from GM, Ford, and Chrysler what they think.
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u/One-Earth9294 9d ago
Someone should ask them who's campaign they spent their politics war chest on.
Now that that's just a normal thing that companies have.
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u/Boxatr0n 9d ago
The CEOs who don’t manufacture in America so they can make more money without paying American wages?
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u/CrucioIsMade4Muggles 8d ago
It's a catch 22. If they built in the US, Americans couldn't afford to buy the cars.
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u/medicalgringo 9d ago
this is hilarious
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u/NoDeparture7996 9d ago
id rather have a president who's less concerned about being funny and more concerned about actually running the office
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u/ArbitraryMeritocracy 9d ago
If he doesn't appeal to his base who will vote for him?
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u/HalloMotor0-0 9d ago
Trump is going to bankrupt the auto industry like his own company 6 times in the history
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u/chasing_alpha_ 9d ago
Wait till the oops I did it again ‘ delaying tariffs ‘moment before implementation day 😂
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u/LARufCTR 9d ago
People are already cancelling their May builds from Porsche...expect a lot of inventory....SITTING....so much WINNING!!!!
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u/kjbbbreddd 9d ago
This is equivalent to Toyota's products having an additional 25% consumption tax added to their current prices, but do Americans realize it?
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u/tiripshtaed 9d ago
Why’s Trump got such a problem with Vegans and vegans and vegans and vegans and vegans and vegans
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u/NarwhalMonoceros 9d ago
I’m no China lover, but…. Their consumer market is growing and with 1.4bn potential consumers it has to end up dwarfing USA consumerism.
I know China has always been protectionist but with the USA effectively financially attacking allies and foes with the same vigor, surely in the end this will just make China more influential more quickly on the global stage.
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u/Remarkable_Crow6064 8d ago
Even the cars assembled in America are made from foreign parts. Cars cross the border multiple times during the assembly process as well.
Cheeto in chief is going to make vehicles unaffordable, like everything else. Are we winning yet?
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8d ago
Takes 2 years to build a new plant, 18 months to get it running. His term will be over before the projects would be completed and he will be long dead before the shareholders will see a return.
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u/sonofabobo 8d ago
Now that Trump has gone woke, MAGA are going to have to start hugging trees and fighting global warming.
"I love Tesler!"
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u/motusubaru 9d ago
Does his plan work ? Put tariffs and force them to build all in the US ? Just wondering about the current state... If it's working he's a genius but if it's not 😂
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u/DunkBird 9d ago
It doesn't matter if it does or doesn't, its still fucked that he's acting like these "billions of dollars" aren't coming directly from tax paying US companies already, and this is going to royally fuck over standard industry with how careless he is with these tariffs.
The chat debacle just shows it, they're not a serious administration and they have no idea what the fuck they're doing. Nothing is backed up by reason or fact anymore so buckle up.
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u/Daleabbo 9d ago
The problem is exports. No American product will be competitive for exporting so you just cut off the rest of the world from buying.
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u/truckaxle 9d ago
And after a few years of US automakers not having to modernize and compete, we end up with the Pinto
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u/dual-lippo 9d ago
Tariffs rarely work. There has been a study in 2018 (cant remember the names) that showed, that in the end mostly no new jobs are created and it will only increase prices for customers
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u/phplovesong 9d ago
Fun fact: this was just 0.9% of all the "biLLiOnS" trump has given the world. Billions! And ofc, BILLIONS!
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u/castion5862 9d ago
It will crash it, no economics degree required to figure that out. European cars will find other markets and have a very healthy market in Europe already
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u/ggRavingGamer 8d ago
Auto tariffs were on against Japan back in the day. Didnt help Detroit much. Chrysler still went bust and was bailed out by government in the 70s or early 80s. Plus domestic producers will simply raise prices 1. Because parts are more expensive 2. Because they can and goverment is protecting their oligopoly. Also ofc this will lead to lower competition between domestic car companies and this will cause them to lag in research and so on, because they dont have to. The only way to make a 25 % tariff work is to rise it so much it makes no sense to import. Otherwise prices of domestic car companies wont be much lower. Also, you can make everything in the US, no question. Like North Korea does in North Korea. Is it economically sound though?
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u/The_Saiyann 8d ago
I get the people who love him, everyone is entitled to their opinion … but the tariffs are going to fuck you so hard that you’ll need an account on pornhub. The supplier won’t pay them, the manufacturer won’t pay them … there’s only one person who will, the consumer.
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u/According_Stuff_8152 9d ago
He doesn't and never has understood what the negative impact of the tariffs will have on the Auto sector or the American people.
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u/Traderbob517 9d ago
For is over 80% manufactured in the US. GM is around 66%. Hyundai is around 64%. Tesla is around 97%. Some ford models are around 97% built in the US with a handful of components imported for assembly.
We can see that a singular company is in a better position to not deal with tariffs.
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u/Suitable-Display-410 9d ago
Your numbers are off. This is on parts too. The model S is using 35%, the Model 40% parts that are imported from outside of NA. And the remaining parts are often imported from Canada. Tesla is less affected than other brands, but they will also be heavily affected.
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u/Middle_Message8081 9d ago
don't half of America's vehicles use the world motor? won't that be arrived or are going to do the thing where they ship it in pieces and the assemble it in the USA to avoid paying?
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u/lxnarratorxl 9d ago
Less than the cost of moving and maintaining manufacturing here so pointless. Makes things more expense use for consumers and hurts corporate profits while helping no one.
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u/RedRonaldRing 9d ago
I think it’s where you ask yourself: « Am I gonna buy an American car or a Chinese car? ». Support local? IDC I’m not American. (btw it’s a f****** car)
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u/Budd7566 9d ago
Magnitudes of scale... its still billllllions. Atleast he aint saying trillions... yet. What comes after that? Greenland?
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u/grifinmill 9d ago
Closing car factories and moving them to the United States will take years, if not decades. I'm sure all manufacturers currently have agreements with city, state and national entities that gave them all types of incentives and tax breaks for them to come and set up business. Not to mention hiring and training employees, setting up supply chains and transport, and dealing with customs. And you have to do it all over again inside the US with unions, the IRS, Trump and more regulatory scrutiny.
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u/looking_good__ 9d ago
This will likely kill new sedans in the US. US manufacturers refuse to make an affordable sedan - Ford, GM, Chevy. They only want to make $50k+ SUVs and Trucks.
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u/Individual-Dot-9605 9d ago
Did he ever get that orgasm? Its basically his whole motivation. I can tell ya Donald you ll neve be a Musk, every cent in your bank account is a dollar in Musk s pockets.
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u/Miserable-Variety-66 9d ago
Believe in an America where everyone drives the same American car. The best cars, only the best and everyone is so rich. Did I miss something?
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u/LightningJC 9d ago
Can someone just put the clip of him saying "of condoms" right at the end of this.
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u/Tanguish 9d ago
Question is how much does Canada buy in US automobile products each year? Most of those sales will be gone.
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u/heaveninblack 9d ago
How many collective MAGA brain cells are killed when listening to Trump speak?
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u/SectorSensitive116 9d ago
Looks like a massive short term boost for the used car market then. Who'da thunk it eh?
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u/Additional-Series230 9d ago
Pretty much every component will be taxed. The misguided nature of this whole tariff nonsense. Navarro has been pushing this for a decade.
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u/TedBob99 9d ago
It will impact Tesla further in Europe.
Even if they are made in Europe, people will retaliate and won't buy an American brand.
Europe won't put tariffs on American cars in retaliation, nobody wants them anyway.
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u/TrainSignificant8692 9d ago
Gonna tariff the assembled cars, then also tariff the intermediate parts that are produced in Canada and Mexico, (and also tariff Canadian aluminum, which is 60% of American aluminum supply). Why? Because fuck Canada, thats why (Melania wanted to bang Trudeau, so PUNISH CANADA).
Why haven't you said thank you?
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u/Trytun015 9d ago
I'm in the automotive business - on the insurance/auto repair side. Companies are already starting to lay people off in response to the expected 25% increase in part prices. The realist increase passed onto the average American will be much higher. It'll cascade into your auto insurance premiums because the parts and repairs will be more expensive.
Buckle up, it's going to get wild.
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u/CasualBeer 9d ago
Honest question: I know it's not r/economy, but how do you think this will develop long-term? (like in 10-15 years perspective) Not here to validate what Trump is doing, but I wonder if there is at least a chance of something positive for US economy comming out of that. Btw. I'm not from US
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u/PiingThiing 9d ago
Nothing. Like the rest of his tariff threats, he'll likely roll it back the day after he rolls it out.
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u/Low_Direction1774 9d ago
dump your shares to get money
crash the stock market
buy shares for pennies on the dollar
stop actively making things worse
market recovers
youve now trippled your investment
Gang we are not stupid, no more gambling, even the DCA enthusiasts are thinking of holding out because right now it doesnt make much sense to buy stocks. I know that a lot of my friends are still putting money into their portfolios but they stopped all stock saving plans because its very likely the stock market implodes and collecting -80% wont be easily saved by DCA'ing either.
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u/Star_BurstPS4 9d ago
Nothing they will push the cost to the consumer like they always have done, 80k will be the new normal. Better off buying a horse these days.
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u/Jdec529 9d ago
Another post full of whining and insults. Not much constructive conversation here anymore
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9d ago
One who does not know the effect of a Boomerang, shouldn’t throw one in the first place. His advantage is, that he’s does one thing today and turns it tomorrow the other way, telling you straight in your face, “ who cares about the Bull I said yesterday”
https://www.pbs.org/newshour/economy/5-things-to-know-about-tariffs-and-how-they-work
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u/nanotasher 9d ago
Okay, so serious question.. Secretary of Commerce goes on Fox News and urges Americans to buy Tesla. Tariffs go into effect for auto imports two days later. Was he trying to pump TSLA? What's the logic here? Someone help me understand.