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So #MyThoughts —

This is not free market capitalism. It’s ultra protectionist quasi-mercantilism. He’s treating the US like a developing country with an emerging market, trying to push it to become a net exporter (vs. importer) by force at the expense of other nations and the US economy (at least in the short-term).

And absolutely - US auto makers / suppliers would have to raise prices to meet their bottom lines when their COGS suddenly increase because of tariffs.

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#MyThoughts (cont.)

The US has been a net importer for much time (consumer spending makes up ~68% of GDP) and its citizens, the consumers, are used to having much purchasing choice.

Pushing the country to fundamental economic change through #tariffs will inevitably isolate the #USA while hurting its economy.

Prices will rise per free market principles of supply & demand unless they are set by the State (meaning #Trump — is that where he’s going w/ threatening companies?).

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#MyThoughts (cont.)

Changing a country from a net importer to a net exporter of manufactured goods would require that the quality and prices of the goods be competitive on the world market.

1) Quality — there are many other countries manufacturing fantastic goods

2) Price — would the US compete (must consider cost factors like labor and COGS, which would rise w/ #tariffs )

… unless the country plans on boxing itself in and trading with itself

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#MyThoughts (cont.)

Anyway, bottom line—

Trump’s tariff plans are 100% pro-inflationary.

The aggressive, high tariffs and other protectionist measures will lead to:

— higher prices
— increased isolation of the #USA from other trading countries
— fewer choices for consumers

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In addition, the crippling ripple effects of Trump’s #tariffs, especially if prolonged, will hurt US businesses and the labor market.

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There is a reason #Trump told Americans to expect some “pain.”

Oh one other thing I forgot to mention— the value of the US dollar (and Trump seems to have mixed feelings about what that should be) and the dollar’s standing as the world’s reserve currency in relation to the US’s place in world trade.

I’ll formulate some coherent writing on those thoughts soon

@kevinrns I wonder how long allies will stay in the US manufacturing automobiles if the effects of Trump’s tariffs are prolonged.
The tariffs will hit all of those components you mentioned (and more).

I’m concerned about the ripple effects on the economy — how it will affect businesses’ bottom lines and whether they will have to lay off employees, etc.

@dalfen

Depends on their supply lines for new manufacturers, there is cross manufacturer sharing, its not just Ford GM and Stellantis.

Hyundai and Kia are INCREASING their US investment in EVs.

China is adding tariffs to Canada, because China wants to land boatloads of EVs at ports.

There is a scene in Fantasia where Mickey plays at being a wizard, this is, I think, where we are.

@kevinrns sigh — it seems many players treat trade like a zero sum game… but trump is like the baby on the playground wanting all the toys NOW lol

I feel strongly that his trade & tariff policies will backfire bigly.