r/WallStreetbetsELITE • u/stresskillingme • 10d ago

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

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u/NarwhalMonoceros 10d 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/Willa-x 10d ago

You are overthinking it. The government now encourages us to take out loans for consumption. Our unemployment rate is too high and our income is too low. China's internal circulation consumption is not going well.

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u/TrainSignificant8692 10d ago

That would be great if China actually played fair and opened their market to foreign companies. They allow some western companies in but with great restrictions. The North American car companies are competing against companies that operate in a pretected market with over 4 times the population, where they also benefit from massive state-led industrial policy. Private, for-profit firms in the west cannot compete with that, so if North America and Europe wants to have its own car industry, some pretectionism is warrented and its only fair as this is how China has alwasy treated western companies.

However, that would require cooperation with Canada, Mexico, and the EU, and the orange moron wants to tariff those jurisdictions because... Stupidity.