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Title: Will the Trump tariffs substantially increase the cost of vehicles and stoke inflation?
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URL Source: https://www.americanthinker.com/blo ... icles_and_stoke_inflation.html
Published: Mar 31, 2018
Author: Jack Hellner
Post Date: 2018-03-31 18:58:12 by Justified
Keywords: None
Views: 6283
Comments: 57
It's amazing. Even a topic as dry as tariffs gets the press's bias wheels turning. Here's one example, from Reuters:
Toyota Motor Corp said on Friday U.S. tariffs on imported steel and aluminum would substantially raise costs and therefore prices of cars and trucks sold in America.
"The (U.S.) Administration's decision to impose substantial steel and aluminum tariffs will adversely impact automakers, the automotive supplier community and consumers," the automaker told Reuters.
Toyota added that more than 90 percent of the steel and aluminum purchased for cars built in the United States is sourced from the country.
Substantially? In making this claim, somehow, the reporter did not ask Toyota what the substantial cost increase would be. I would think that would be a valuable piece of information, since the average price of a car or truck today is around $36,000. So I thought I would do some research to find what "substantial" means.
The current price of steel is around $800 per ton, and the price of aluminum is 97 cents per pound. The average car uses around one ton of steel and close to 400 pounds of aluminum. The average truck uses around one and one half tons of steel and just under 400 pounds of aluminum.
So if the price of the steel in a car went up the whole 25%, which it won't, and the price of aluminum went up the entire 10%, the cost would go up by about $240, or less than five tenths of a percent. The cost of a truck would go up around $340. According to Edmunds, the average car loan today is six and a half years. or 78 months, so the average payment would be up around $3 per month because of the tariffs, or 10 cents a day. Since people keep their cars for a long time, the tariffs will add little to overall inflation. Thank goodness Trump gave a big tax cut, which will more than cover that.
Canada is pitching a fit about the tariffs, but the Canadians have many controls on imports from the U.S. Here are a couple of examples.
Canada uses supply-management systems to regulate its dairy, chicken, turkey, and egg industries. The regime involves production quotas, producer marketing boards to regulate price and supply, and tariff-rate quotas (TRQs) for imports. Canada's supply-management regime severely limits the ability of U.S. producers to increase exports to Canada above TRQ levels. Under the current system, U.S. imports above quota levels are subject to high tariffs (e.g., 245 percent for cheese, 298 percent for butter).
Canadians face high provincial taxes on personal imports of U.S. wines and spirits upon return to Canada from the United States.
When the government calculates the growth in the economy, it reduces the growth if there is a trade deficit. That certainly suggests that the overall deficit is bad and that a goal to improve the growth in the U.S would be to reduce the deficit, which is what Trump is trying to do. If Trump just added the tariffs on China, China would just ship the steel to other countries, particularly other countries with free trade agreements with the U.S., and then those countries would ship the Chinese steel to the U.S., so it wouldn't solve the problem of dumping.
The United States has the world's largest trade deficit. It's been that way since 1975. The deficit in goods and services was $566 billion in 2017. Imports were $2.895 trillion and exports were only $2.329 trillion.
President Trump has been handed many significant problems that have built up for many years – and, in many cases, decades. These problems include but are not limited to:
The massive trade deficit, a slow economy, high taxes, too many regulations, North Korea, ISIS, Russia, China, out-of-control health care costs (because of Obamacare), the opioid crisis, the unconstitutional Deferred Action for Childhood Arrivals (DACA), and unchecked illegal immigration as a whole, along with lawless sanctuary cities and states.
Thank goodness President Trump and the people he hired with business experience are used to working on many projects at one time and strive to produce results as fast as possible instead of slogging through the massive bureaucratic process. The tariffs on steel are just one part of it.
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When msm will not quote your honestly and lie about everything. Tweet is the only way to get to the people and you have a problem with this method? Me thinks you have an ulterior motive!
#18. To: Justified (#0)
President Trump has been handed many significant problems that have built up for many years – and, in many cases, decades.
Yup.
The can has been kick down the road for over 25 years.
Trump finally picks it up before the US becomes a Slave-State to China. Reflexively, delusional Democrats and limousine liberals are whining on cue. They are burying their head in the sand, again believing in their Cult if Kumbaya.
It is essential that America re-develops our own steel and other industries. Lest we be blackmailed.
#19. To: Justified (#15)
If you'd ever actually manufactured anything you'd know it's a raw material.
But you haven't.
#20. To: buckeroo (#2)
This takes brain-power. Trump operates from neither position other than a "tweet."
Why even bother??
#21. To: Justified (#17)
Tweet is the only way to get to the people and you have a problem with this method? Me thinks you have an ulterior motive!
BULLSHIT
#22. To: Liberator (#20)
The man is POTUS not some bum off the street.
#23. To: Liberator (#18)
It is essential that America re-develops our own steel and other industries.
I always enjoyed seeing the steel mill in Pueblo running when we drove past on Boy Scout camping trips back in the 60's/70's
Today, if it comes back online...
http://www.cpr.org/news/story/pueblo-steel-mill-bought-russian-firm
It will be managed by Russians.
Go figure.
#24. To: VxH (#1)
What's your point here?
Yes, before the GAIN, there will be PAIN.
Do you know what the alternative is? Sooner or later we gad to deal with a China who considers the USA the only thing standing in the way of world beholden to China's military and economic power. Donald Trump is the ONLY President the US has had since Reagan who didn't possess a pair of ovaries. OR was a Globalist.
#25. To: buckeroo, VxH (#16)
No a product is a product which is consumed by someone. It may be the beginning or the end product.
It still comes back to foreign products are not taxed by the US and domestic products are. Why is that so hard to get?????
#26. To: VxH (#23)
Doesn't surprise me...
This is one reason we've got to get a handle on this ASAP.
#27. To: buckeroo (#21)
Tweet is the only way to get to the people and you have a problem with this method? Me thinks you have an ulterior motive! BULLSHIT
OMG you have to a mental patient!
#28. To: Justified (#25)
You don't know SHIT about the added value of each operational step through the supply chain + TAXATION.
Trump fucked America; the equity markets prove it.
#29. To: Liberator (#24) (Edited)
Do you know what the alternative is?
Alternative?
There is no alternative to the gradual decline of the PetroDollar in the context of peak oil and Russian / Chinese oil pipelines.
A tariff on raw materials that screws what remains of american manufacturing in the process won't change that.
#30. To: buckeroo (#22)
People only worry about frilly things when they disagree with something.
Yes he is an asshat who cares? Would you rather get taken by a smooth talker or paid by an asshat?
#31. To: Justified (#25)
Consumers don't by aluminum or steel stock. Manufacturers do.
#32. To: Justified (#30)
People only worry about frilly things when they disagree with something.Yes he is an asshat who cares? Would you rather get taken by a smooth talker or paid by an asshat?
What the HELL are you talking about now?
#33. To: buckeroo (#28)
I understand more than you do. One thing you guys forget is lost jobs and tax burden that must be picked up by others while we support foreign companies and countries!
I understand the cost of doing business. If everyone is stuck with the same cost its the cost of doing business. But if one group is allowed to skirt the law then it harms the honest business.
Its America first everyone else second. You want cheap shit go to china and then you will find out its not cheap when you can not afford it on slave labor.
#34. To: VxH (#31)
Consumers don't by aluminum or steel stock. Manufacturers do.
OMG who gives a rats ass?
Do we not make steel and aluminum here in America????
Its right vs wrong. Tax people equally! Why do you want to support foreign companies on the back of tax payers???
#35. To: Justified (#33)
I understand the cost of doing business.
Oh so, just add the taxes on to the consumer, correct? Have you ever heard of Laissez-faire?"
#36. To: Justified (#34)
OMG who gives a rats ass?
Anybody whose actually manufactured anything and had to buy raw materials.
But not you.
#37. To: buckeroo (#32)
The fact that msm lies about what Trump says and what he has done. The only way to get at them is through tweets?
Trump calls them out for lying and they are upset and you are too?
#38. To: VxH (#36)
Anybody whose actually manufactured anything and had to buy raw materials. But not you.
So you only care about some people not all people equally?
So its okay to buy foreign untaxed raw materials because its not the finial product to the finial consumer? Think about that for a second!
Whats to say a radio that goes into a car is a raw good and you can buy it from say china untaxed instead of buying an American radio that is heavily taxed since its not the finial product because the car is the final product! /eye roll
#39. To: Justified (#34)
Do we not make steel and aluminum here in America????
You're amazingly ignorant.
This is a list of countries by aluminium production in 2016.[1]
| Rank | Country/Region | Aluminium production (thousands of tonnes) |
|---|---|---|
| — | World | 57,600 |
| 1 |  People's Republic of China | 31,000 |
| 2 |  Russia | 3,580 |
| 3 |  Canada | 3,250 |
| 4 |  India | 2,750 |
| 5 |  United Arab Emirates | 2,400 |
| 6 |  Australia | 1,680 |
| 7 |  Norway | 1,230 |
| 8 |  Bahrain | 970 |
| 9 |  United States | 840 |
| 10 |  Iceland | 800 |
| 11 |  Brazil | 790 |
| 12 |  Saudi Arabia | 740 |
| 13 |  South Africa | 690 |
| 14 |  Qatar | 640 |
| — | Other Countries | 6,240 |
#40. To: Justified (#37) (Edited)
I wouldn’t debate with those two shit stains. They’re paultards. Paultards by definition must hate anything that isn’t paultard... and that includes Trump.
I'm the infidel... Allah warned you about. كافر المسلح
#41. To: GrandIsland (#40)
I wouldn’t debate with those two shit stains
You'd get your ass handed to you as usual.
#42. To: Justified (#3)
Less than a month after President Donald Trump announced new tariffs on imported steel and aluminum, the CEO of an Ohio-based manufacturing company says his business is already paying significantly higher prices for rolls of steel—and that he will have little choice but to pass those costs on to his customers.
Mike Schmitt, CEO of The Metalworking Group, tells Reason that prices for cold-rolled steel have jumped by 18 percent since January, while hot-rolled steel (a less-well-finished and less expensive product) has increased in price by 30 percent.
"The reality is that those are traumatic increases. They are shocks to our system," Schmitt says. "This isn't a level of price increase where you can say 'oh, I'll negotiate a little bit of it.' You have to pass it on."
“Truth is treason in the empire of lies.†- Ron Paul
Those who most loudly denounce Fake News are typically those most aggressively disseminating it.
#43. To: VxH (#39)
Omg you are thick in the head.
Are you to blind with hate to think? Btw Pittsburgh Steelers mean much?
#44. To: Deckard (#42)
You mean he fatting his pockets claiming his cost went up. I see this stuff in my business.
Fair is fair. Equal treatment by government is the cornerstone of our republic. Tax all people equally. One sided free trade is meant destroy the middle class by bringing in untaxed products.
#45. To: VxH (#41)
VXH
Speaking of Paultards...
What’s that stand for, Very Homo?
I'm the infidel... Allah warned you about. كافر المسلح
#46. To: GrandIsland (#45)
Why don't you tell the class how the cost of materials is passed on to the consumer there GrandPylon?
https://www.evsmetal.com/2015/05/the-impact-of-raw-materials- pricing-on.html
#47. To: Justified (#43)
Pittsburgh Steelers mean much?
Kneeling or Standing?
#48. To: Justified, buckeroo (#33) (Edited)
I understand more than you do.
Tell the class what this means:
https://www.zerohedge.com/news/2018-03-31/china-plans-pay-oil- imports-yuan-instead-dollars
China knows it doesn't HAVE to sell anything to the USA, for dollars.
PetroYuan = PhaQue Donald Trump!
#49. To: Justified (#0) (Edited)
Will the Trump tariffs substantially increase the cost of vehicles and stoke inflation?
A small amount. But it will also result in enormously inceased survivability of the country. Each year you can walk through stores and see greater proportions of goods labeled "made in China" or wherever. Its come to the point where we are becoming a nation of fat-ass MBAs ordering stuff from other countries. The dollar is becoming worthless because we don't make anything here for other nations to buy with it. We're on the road to becoming a third world nation. A nation full of useless parasites.
The first rule of economics is there must be productivity. What you use here, you make here.
#50. To: rlk (#49) (Edited)
What you use here, you mke here.
Maybe Donny Drumpf should've sprinkled magic fairy dust on the U.S. Steel and Aluminum industry BEFORE raising raw material costs for what little manufacturing remains in America.
#51. To: VxH (#46) (Edited)
Why don't you tell the class
Very X Homo,
Why don’t you tell the class why you’re flapping your shit eaters in joy over not trading on a level playing field.
I'm the infidel... Allah warned you about. كافر المسلح
#52. To: VxH (#48)
Why do I care when you clearly do not answer what I have posted.
We have reached our end here.
I will part with this. Clearly it would be better not to use tariffs but its a tool to keep others in checked. If we do not keep others in check then they will have zero reason to follow trade deals. They will have zero respect for us. They will use their trade deficit as a weapon to harm USA. If you can not see this then there is no hope for you.
#53. To: rlk (#49)
It's nearly impossible to find made in the USA. The small businessman is a dying breed to be replaced with huge global corporations which can not be held for any damage they do. Case in point the owner of the water slide in Kansas are being prosecuted for doing what every big global corporation does everyday and are almost never prosecuted. At most they pay a small fine which is passed on to the product or service they sell. We are heading back to the days of feudalism. This is what "progressivism" is designed to do.
#54. To: Justified (#53)
You made a lot of good points on the thread. You make sense. Some of the others not so much.
#55. To: A K A Stone (#54)
Thanks.
When you see right before your eyes its hard to not realize what is going on.
#56. To: GrandIsland (#51)
joy over not trading on a level playing field.
Grand Pileon, economic Suuuper Genius. Not surprising you've never bought steel or aluminum stock and manufactured it into anything useful.
https://www.nationalreview.com/2017/01/prison-labor-laws-wages/
How's applying suction to that "level" prison industrial teat workin for ya, parasite?
#57. To: Justified (#52) (Edited)
Maybe Donny Dumbass should've sprinkled magic fairy dust on the U.S. Steel and Aluminum industry BEFORE raising raw material costs for what little manufacturing remains in America.
“However, recent tariff announcements were already reported to have added to inflationary pressures, and also led to the stockpiling of goods expected to rise further in price in coming months. Input cost inflation consequently hit the highest since 2012. Increased costs were often passed on to customers, meaning prices charged for goods at the factory gate showed the steepest rise in over four years"
Oops!
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