r/WallStreetbetsELITE • u/stresskillingme • 10d ago

MEME How much will Trump's 25% tariffs cost the U.S. automotive sector?

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8

u/motusubaru 10d 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 😂

22

u/DunkBird 10d 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.

9

u/Daleabbo 10d 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.

12

u/truckaxle 10d ago

And after a few years of US automakers not having to modernize and compete, we end up with the Pinto

2

u/Figgy_Puddin_Taine 10d ago

They just barely try as it is

1

u/bamerjamer 9d ago

You don’t want the next Yugo??

3

u/Atuk-77 10d ago

Prices to produce in the US are high (healthcare insurance by itself is more expensive than wages in other countries). Companies may move around to minimize the 25% impact.

2

u/dual-lippo 10d 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

2

u/getinshape2022 10d ago

Watch Ronald Reagan talk about tariffs.

https://www.youtube.com/shorts/Mj6N-WBPrVw

1

u/Dral_Shady 10d ago

Just watch the car prices over the next months and years and you will know.

1

u/GrandAdmiralSnackbar 9d ago

It can work to the extent that more gets produced in the USA. A few problems though: producing in the USA is going to be more expensive (there is a reason those factories moved out, it was cheaper to produce abroad), and thus car prices will go up. Secondly, the rest of the world will retaliate. And they seem to be smarter about their targets than the USA. You can expect the EU and China to target exactly those parts of US exports that hurt them the least, and hurt the USA the most.

1

u/CrucioIsMade4Muggles 9d ago

No. No American can afford a car that is built in the US. It's not possible to build most modern cars in the US at all, because the technology needed to do so cannot be built here because of export controls.

-2

u/beekeeper1981 10d ago edited 10d ago

If the auto companies don't go bankrupt, consumers can handle paying much higher prices, and the auto makers can be efficient no longer exporting cars out of the US, maybe in 5-10 years there could be a positive outcome. Maybe the loss of exports might equal the same number of jobs now.. so the benefit is much higher prices.

17

u/HighTechPipefitter 10d ago

Consumers can't handle the hike. 

Tariffs are making everything more expensive.

Your small and medium manufacturers are taking a massive hit. 

No one will invest in an unstable mess of a country. 

Your export will receive counter-tariffs and you'll be isolated from the global market. 

The US dollars will sink. 

You'll lose your place as the central hub for markets.

You'll enter recession, then a depression. 

Then, who knows, you'll probably end up with a civil war on your hand.

7

u/FJ-creek-7381 10d ago

Otherwise known as concept of a plan aka destroying USA

5

u/EldritchMacaron 10d ago

Otherwise known as Russia won

3

u/getinshape2022 10d ago

Perfectly put

2

u/Revolutionary_View87 9d ago

This is a very easily explained probable scenario yes.