I doubt very much that there is a profit margin of 25% in the auto part industry. So the result will instead be a close down of production.
It will take a while to move production to USA.
Ford doubles down on threat to cut off energy to U.S. amid spectre of trade war
- Thread starter DesRicardo
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It will take a while to move production to USA.
Phil, CNN is telling the truth?? WTF???? LOL
Are you still happy Trump won? Just curious.
Shocking, isnt it??!!
For now I am. I agree with most of his policies, except the tariffs.
I dont think it will be a catastrophe for Canada. We'll see how it all goes
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The prediction is that Korean and Japanese cars will simply take over the market in the next year or so and the US automakers will simply collapse - or force Trump to revoke the tariffs.
The problem is that Trump is no longer mentally functional and will not necessarily respond to industry pressure.
Thats the thing, Canadians and Mexicans will probably start boycotting US car brands, and switch to Euro/Japanese cars
US car makers will lose billions in the process.
Its gonna be interesting to see how the DOW reacts this morning.
I'm betting it'll be a blood bath
Again...
Right now we sell you crude already at a discounted price. Trump is about to wipe that out. And you don't have the supply chain infrastructure to make up the Midwest demand.
In the case of auto, again, the supply chain is tight. 6% margins on cars. Now you've anticipated to add a 25% tariffs and you think we will eat the cost.
The manufacturers have already stated they will shut down. Which means all the assembly lines stop. Period. 30% of soft wood lumber used is Canadian. Its a finite supply.
And if you think US suppliers wont hike prices, you are naive. They will raise prices to match tariff prices and take the profit.
And it all gets passed down to consumers.
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6-7% . The parts makers are already planning shut downs. Temp layoffs.
Trump is making all these federal cuts and tariffs, only to have to bail these industries out down the line.
Layoff, inflation, supply chain shortages, production delays and shrinking trade market with your biggest partners is going to be a lot of pressure on the American economy.
Fun times ahead.
Layoff, inflation, supply chain shortages, production delays and shrinking trade market with your biggest partners is going to be a lot of pressure on the American economy.
Fun times ahead.
DOW is currently down 450 points
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Dump tried this crap in his 1st administration and had to quickly reverse course cuz it was a stupid idea then, like it is now. What’s that saying about repeating the same action and expecting a different result?
The problem now is he has all yes ass kissers around him. When they said to be careful because there would be no guard rails this time around, they were 100% correct.
DOW now down 650 points.
Boeing and some other blue chips are starting to look very attractive
Boeing and some other blue chips are starting to look very attractive
Boing has not lately been on a winning streak. China will be coming on strong in aviation.
You raise a valid point, however, after we decide to "brown down" the grid, would it be more reasonable to expect the US will shut down the pipeline or perhaps have some maintenance issues and the flow into Canada is "temporarily reduced during urgent maintenance"?
Either way the US will not play nice on this. Scores will be settled. Revenge will be taken. Grudges will be held.
A reaction will be forthcoming.
I do think it's part of the plan. Once the economy completely tanks, the billionaires will take hold of massive assets. The American oligarchs will be born.Trump is making all these federal cuts and tariffs, only to have to bail these industries out down the line.
Layoff, inflation, supply chain shortages, production delays and shrinking trade market with your biggest partners is going to be a lot of pressure on the American economy.
Fun times ahead.
Stupid citizens will still blame it on the democrats.
