Trump / Musk (other than DOGE) Omnibus Thread

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Tariff Threat Prompts Automakers to Find New Suppliers, Consider Higher Prices​

Companies are scrambling to make plans B, C, D and E​



“…
A 25% tariff on goods from Mexico “would be absolutely devastating to our business,” said Kowal, chief executive of Leggera Technologies, a 115-person company that makes magnesium-based car components.

The auto industry, from General MotorsGM -0.08%decrease; red down pointing triangle to mom-and-pop parts suppliers, is mobilizing for potential mayhem if Trump makes good on his promise to implement a 25% across-the-board tax on imports from Canada and Mexico as soon as Saturday. Companies like Leggera would immediately face steeper costs, which could squeeze or eliminate profit margins. Those higher expenses will get passed on to automakers and car buyers, raising vehicle prices across the U.S.

“I’m nervous,” said Kowal, who cleared his weekend plans—including his son’s futsal tournament, an indoor version of soccer—to triage the potential fallout and asked his executive team to do the same. “But I have hope that this will be more thoughtful than just putting tariffs on everything automotive. That would freeze the industry.” …”
 
I would look for Canada to start with high tariffs on good from red states.

Have no idea how Mexico will respond.
 
Interestingly, there are provisions in the NAFTA that allow companies to sue governments when violations of NAFTA inhibit their investments. So in addition to all the tariff costs, I would imagine the government will be paying out billions to private companies. I've not heard that reported anywhere, so maybe the investor protection provisions of the deal were quietly erased sometime in the past two decades. But perhaps everyone is just too overwhelmed.
 
NAFTA 2.0 was actually a pretty good treaty. Think it helped both the US and Mexico in eliminating some loopholes that created blindspots. The process to get there was traumatic.
 
CRHeel94 said:
I would look for Canada to start with high tariffs on good from red states.

Have no idea how Mexico will respond.
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Canada is ready. That government isn't run by mooks. It will not only be red states. It will be swing states. And it will be states where there are GOPers up for Senate in 26. Susan Collins, babe, nobody gonna save you now.

I imagine it will be impossible to sell a lobster from the US to Canada
 
There's no way this ends with Elon Musk living in this country. If he tries to stay, he will be killed. Probably executed; vigilante if not. This isn't something I want to see, but that's how the authoritarianism always ends. Trump's family will also have to flee; if they don't I'd imagine Saddam and his kids will have company in hell.
 
superrific said:
There's no way this ends with Elon Musk living in this country. If he tries to stay, he will be killed. Probably executed; vigilante if not. This isn't something I want to see, but that's how the authoritarianism always ends. Trump's family will also have to flee; if they don't I'd imagine Saddam and his kids will have company in hell.
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Hell isn't real.
 
He wil pull his tariffs-before Feb 01-and scream at Canada and Mexico blah blah and manufacture a new crisis the next day
 
Economists must be pulling their hair out watching a know-nothing halfwit like Trump extol the value of tariffs. Dude seems hellbent on wrecking the strong economy he inherited and most of his supporters are too ignorant to understand the economic FAFO barreling their way.
 
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