r/WallStreetbetsELITE • u/stresskillingme • 10d ago

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

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17

u/hmturboman 10d ago

Somebody should ask the CEO’s from GM, Ford, and Chrysler what they think.

16

u/One-Earth9294 10d 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.

1

u/Boxatr0n 10d 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 9d ago

It's a catch 22. If they built in the US, Americans couldn't afford to buy the cars.

1

u/xJayce77 9d ago

Which eventually just leads to less car sales overall as they are priced outside of what the average consumer can purchase.

People will hold on to their cars longer, reducing the need for new vehicles, and additional costs of new cars will decrease consumer discretionary spending (ie - entertaining, restaurants, etc). This will be especially hard in the US as it has been a 'car first' nation for a very long time. Most people 'need' a car.

This will have an impact throughout the whole economy.

1

u/CrucioIsMade4Muggles 9d ago

AKA, what happened to Cuba.

-2

u/Boxatr0n 9d ago

Capitalism would figure it out. I don’t understand Reddit. So is it “CEOs make too much money and don’t pay us Americans enough! Spread the wealth!” Or is it really just “This is bad cause Trump!”

5

u/CrucioIsMade4Muggles 9d ago

Capitalism would figure it out.

No, it wouldn't. Capitalism isn't a magic wand that magically solves all things. The world is full of products that do not and never will exist because they cannot be made affordable under any circumstance.

This has nothing to do with CEOs or Trump.

It is not possible to legally produce a modern car in the US that Americans can afford. That's just reality, and reality doesn't care about politics.

1

u/Boxatr0n 9d ago

But it’s politics that made it “legally not possible”. If companies were forced to build in America you don’t think lobbyists would get those laws changed? Corrupt politicians will figure it out lol

2

u/CrucioIsMade4Muggles 9d ago

No, it's not. It's the decision of companies to manufacture in dozens of countries that each have their own intellectual property laws. That was a decision the companies made.

Either way, it's not going to matter. Americans can't not have cars, and Trump can't make manufacturing happen in America because it's simply not possible for companies to do it, so he's going to end up folding like a wet bag like he always does. Cars will be more expensive for a while, then he'll fold and the cost will come back down...but when it does, it won't come all the way back down and it will create inflation that will likely have to be dealt with by the next president.

This is a foregone conclusion because it's literally the only thing that can possibly happen. Everything else beyond that is extraneous. He made a stupid decision and now this is going to happen. We're stuck with it.

1

u/Boxatr0n 9d ago

All the regulations and laws that make it difficult to manufacture in the US had nothing to do with it then?

1

u/CrucioIsMade4Muggles 9d ago edited 9d ago

The regulations and laws that make it impossible aren't US laws...they're laws in other countries. It's a mixture of IP law (copyright, trademark, etc.) and export control. That isn't politics. That's just standard legal practice.

1

u/mrGeaRbOx 9d ago

So you've obviously never worked with your hands and had a real job or you would understand that those regulations you're talking about are for safety.

Every boss I've ever worked for would throw out all the safety equipment in a heartbeat but you're out here simping for what exactly? You want us to be just like third world countries where people get limbs chopped off while at work and have no recourse?

Who's side are you on?

1

u/HoPQP3 9d ago

Dude the cost of living in the US is just too high to pay wages like in a 3rd world country. If your workers starve because they can't afford food they can't work at your factory. And no Trump can't so anything about it unless he crashes the US economy to a point where the US becomes a third world country.

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u/spamdumporama2 9d ago

Slave labor , child labor.... abolish all federal and state minimum wages... yes those laws could get changed. Florida is now trying to allow child labor from 11 p.m. to 5:30 a.m.

1

u/Boxatr0n 9d ago

Yeah so instead they just do slave and child labor overseas which have way worse conditions. Also, as a 16 year old I worked on farms well before the proposed 6:30 am Florida bill growing up

1

u/spamdumporama2 8d ago

Yes I'm advocating for slave and child labor overseas...... <sigh> The OP said " It is not possible to legally produce a modern car in the US that Americans can afford." Honestly if you've got a solution to arbitrage that does not raise the cost a modern car then your skills are probably being wasted in whatever profession you're in now.

1

u/RedfootTheTortoise 9d ago

Somebody get Ja Rule on the phone

0

u/Bright_Ruin2297 10d ago

They sold out to China long ago.