Tariffs And Trade Deals: Reactions and Impacts

Voluntarist

Voluntarist

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Detroit Three automakers blast Trump UK trade deal
A group representing General Motors (GM.N), opens new tab, Ford (F.N), opens new tab and Stellantis (STLAM.MI), opens new tab blasted President Donald Trump's trade deal announced with the United Kingdom, saying it would harm the U.S. auto sector.

British carmakers will be given a quota of 100,000 cars a year that can be sent to the United States at a 10% tariff rate, almost the total Britain exported last year, compared to 25% for Mexico and Canada and nearly all other countries.

"Under this deal, it will now be cheaper to import a UK vehicle with very little U.S. content than a USMCA compliant vehicle from Mexico or Canada that is half American parts," the American Automotive Policy Council, which represents the Detroit Three automakers, said on Thursday. "This hurts American automakers, suppliers, and auto workers."

U.S. automakers are concerned this could be a template for other agreements that could put vehicles they assemble in Canada or Mexico at a disadvantage.

White House spokesperson on Friday Kush Desai defended the deal. "No president has taken a greater personal interest in reviving the American auto industry than President Trump. The Trump administration is working hand-in-glove with automakers to reshore manufacturing that is critical to our national and economic security, including with custom-tailored tariff relief and deregulatory policies," he said.

The automakers' group added it hopes "this preferential access for UK vehicles over North American ones does not set a precedent for future negotiations with Asian and European competitors."

Trump last month softened the blow of his auto tariffs by easing the impact of tariffs on parts and materials but left in place 25% tariffs on imported vehicles. He also extended a duty-free exemption for North American parts that comply with the U.S.-Mexico-Canada trade agreement (USMCA) rules of origin.
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Ford this week confirmed it hiked prices of some Mexican-built vehicles because of tariffs and said Trump's trade war would add about $2.5 billion in costs for 2025, but expects to reduce that exposure by around $1 billion.

Rival GM said tariffs were projected to cost it between $4 billion and $5 billion, but it expected to offset that by at least 30%, while Toyota projected tariff costs for April and May at around $1.2 billion.
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Tata is the largest campaign contributor back home in India. Looks like they spread some Trump's direction.
 

Tariffs on the auto industry could impact car insurance rates​

Getting behind the wheel is about to get a little more expensive. Tariffs could raise the price of car insurance by nearly 10% later this year.

It’s a snowball effect of the 25% tariffs on imported cars and car parts. If car parts are more expensive or take longer to import, cars then cost more time and money to repair.

Nevada has some of the highest auto insurance rates in the country. This isn’t the news drivers or body shops want to hear.

"We can only do so much in order to survive because we still have overhead and bills and things that we have to pay," said Eric Randolph, co-owner of Izzy’s Auto.

Randolph’s shop has been dealing with the side effects of the tariffs firsthand.

"It's been a lot of raises in the pricing, which causes us to have to raise the prices for our clients," said Randolph.

The higher prices are a result of a trickle-down effect from the original supplier.

"You have the actual supplier, then the supplier goes to the vendor, then [the] vendor sells to the different shops and customers, so then their prices are raised. And then when it reaches the consumer, by the time it’s there, it’s about 100 to maybe 110% markup just for the stores, for the small businesses to make a profit," said Randolph.

Not only are prices higher for foreign car parts, there’s also a slowdown in the supply chain.

"With that vehicle that we're working on, it's been probably like maybe four weeks. We were supposed to have a parking time of two to three days. We're at a four-week hold up right now," said Randolph.

Increasing car parts prices goes hand-in-hand with your insurance bill.

"When you get into an accident, your insurer often has to pay to replace the auto part. And if auto parts were more expensive because it comes from out of the country, then those costs often get passed on to consumers…the average popular new car would see about a 15% increase because of tariffs and in terms of insurance, it would go up about six percent year over year on top of what it was already going to up" said Matt Brannon, Insurify data journalist.
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Copper now costs way more in the U.S. than elsewhere. This could hit its economy hard
The cost of copper for U.S. buyers has rocketed after President Donald Trump said he would impose a 50% tariff on imports of the metal.

It means that already elevated prices are now even higher in the U.S. than elsewhere — and analysts warned of a hit to businesses and the wider U.S. economy as a result.

The U.S. imports just under half of its copper, which is used in products ranging from machinery, electronics and household goods to housing and infrastructure projects. Trump’s stated ambition is to increase domestic production, but experts say this will take years to ramp up and decades to fully meet demand — at a massive up-front investment cost.
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U.S. copper prices ended Tuesday’s session over 13% higher — the sharpest single-day gain since 1989 — marking a record close of $5.69 per pound. On the London Metal Exchange (LME), the global benchmark, prices rose just 0.3%.
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By August, Benchmark said that U.S. consumers could be paying around $15,000 per metric ton for copper, while the rest of the world pays around $10,000, assuming the 50% tariff rate comes into effect at the start of the month.
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Tide and Charmin prices to rise
Procter & Gamble, the maker of several household staples including Tide detergent and Charmin toilet paper, is hiking prices because of President Donald Trump’s tariffs.

The company revealed in Tuesday’s earnings call that its profits will take a $1 billion hit because of tariffs, a larger cost the company originally projected in June. As a result, P&G will increase prices on about 25% of its products, going into effect next month.

P&G previously warned in April that it was going to increase prices due to tariffs.
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Canada kicks American booze as US alcohol sales plunge by 66%
America is feeling the hangover from Canada’s boycott of U.S. liquor, as sales dropped by 66 percent up north, a new analysis has found.

In March, the Liquor Control Board of Ontario announced it would no longer carry American booze in response to President Donald Trump’s tariffs on the country. From March through the end of April, sales of U.S. booze in Canada plummeted more than 66 percent, an analysis by trade group Spirits Canada, seen by Bloomberg, found.

That figure was even higher in Ontario, the country’s largest liquor market. There, sales of U.S. alcohol dropped 80 percent in the same period, according to the analysis.
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Swordsmyth said:
Goldman Finds "Sharp Declines" In Import Prices As Foreigners Absorb Trump's Tariffs

Code: 
https://www.zerohedge.com/markets/goldman-finds-sharp-declines-import-prices-foreigners-absorb-trumps-tariffs

Goldman Finds "Sharp Declines" In Import Prices As Foreigners Absorb Trump's Tariffs | ZeroHedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero
www.zerohedge.com www.zerohedge.com
Click to expand...
Swordsmyth said:

Goldman Finds “Sharp Declines” In Import Prices As Foreigners Absorb Trump’s Tariffs​


freedombunker.com

Goldman Finds “Sharp Declines” In Import Prices As Foreigners Absorb Trump’s Tariffs – FREEDOMBUNKER

freedombunker.com freedombunker.com
Click to expand...

Spamming hard.
 
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