Trumped? BMW Considers Sourcing More US Steel To Lower Costs

Trump will claim this as a victory whereas in reality it will cost jobs and make products more expensive.

How is this costing American jobs exactly?

The article states BMW already buys 70% of its steel for the Spartanburg plant domestically. It also states that BMW will attempt to buy more domestic steel "which is dependent on the availability of appropriate specification and quality". That caveat explains why they don't buy more already. The steel they import is specialty steel not readily available locally. This underlines why putting tariffs on intermediate goods like steel and aluminum isn't good policy. BMW may very well source more locally but in the end the higher cost of that or the tariffs themselves will make building a BMW in South Carolina more expensive. Taxing (which is what tariffs are) materials US manufacturers needs to produce and export a product is self-defeating.

This move is BRILLIANT on part of Trump. Germany has a huge trade deficits with the US and should pay more or even the trade tariffs. Many other countries dump steel and aluminum in the US so bring on the tariffs.

Canada and the US are being bitch slapped by Trump to force both countries to bend over and give the US a better deal or risk loosing NAFTA. Divide and conquer and Trump wrote the book on that one.

In the end there will be no Canadian or Mexican tariffs or they will be struck down by the WTO but Trump will succeed in getting better trade deals for numerous countries and shitholes and good for him. What the real benefit here is Trump is scaring enough big companies that are looking at this and thinking about onshoring operations to the US so they can be in the second largest market should anything happen to NAFTA or these tariffs price these companies out of the market.

Trump only cares about the end result and negotiates with a sledgehammer. Like him or loathe him but he is fighting to get America the best deal and terms and long term will be regarded as a ruthless yet effective POTUS. MAGA and fuck everyone else (coming from an envious Canuck).

Sorry, but Trump is an ignoramus. So you're going to raise the cost to American exporters including BMW's South Carolina plant to get a bit more of the commodity steel market all while raising the costs of higher value finished American goods on the world market? About 30 percent of that aluminum and steel imported into the US goes right back out again as much higher value finished goods. By raising the costs of American manufacturers either by the tariffs or higher cost domestic sources, you're making America less competitive in manufacturing where the real money is. Steel and coal was a fine industrial plan for the 1870s, not so much now.

rlbdcky

You make some good points but in reality these tariffs will only be temporary until the US can hammer out better deals with many of the one sided trade countries like Germany, China etc.

Why should China be given "Most Favored Nation" status when they tax the shit out of American goods? Why should Germany be allowed to have such massive trade deficits? Buy more American goods or make your stuff in America if you want to weasel out of the duties. The US is a big enough of a market that they can dictate terms.

The real problem is previous administrations of both parties let this go on for far to long unchecked and Trump is making long overdue corrections albeit in an unconventional manner. It's not his message that matters -it's the net end result and watch as many of these bad actors adjust tariffs more favorably and open the door to more US cross trade which is the real end goal.

@QEW - Correct. China is the problem the world over in dumping steel. Canada is not. From Autos to Aerospace we are a valued partner and have been for years. East of Toronto is a hotbed of manufacturers who make products for Passenger jets and fighter jets for the US armed forces. Canadian steel plus a skilled workforce makes the difference. And yes this is a bit of NAFTA ploy but doing so under the guise of National Security violates WTO principles as pointed out on CNN by our Minister of Foreign Affairs. NATO allies are not threats to national security. This move will hurt business and consumers on both sides of the border because it will make a whole host of goods cost more than they should. It is a hamfisted approach to trade and Trump's own party members in the House and Senate are now pushing back. Time will tell where this all goes.

There's a big difference between Germany and China. Germany is an ally. You want to punish Germany because they produce high quality products that the world is beating a path to their door and paying top dollar to buy? Canada has been fully integrated into the North American economy since the mid-20th century. You want to "bitch slap" them? You're slapping yourself. China is a bad actor and an adversary. Mexico, Canada, and the EU are not adversaries, they're allies. Trump's America against the world policy is a recipe for a weaker, more isolated America. It's also a bit much to hear conservatives talk about the left as socialists when there's no more naked exercise of government knows best than the tinkering in the steel and coal markets that Trump is doing now-propping up dying industries with ham-fisted tariffs and fiats.

Germany is an ally who does nothing for us. China is a better ally to have.

TrumpLand: The place where Nazis are "fine people" and Canada is an enemy.

Ya can't make this sh*t up :-/

SteveLand: The AutoSpies libtard "Safe Space" abode where everyone that doesn't agree with the narcissistic resident trollsters moral superiority is a Nazi and American exceptionalism & democracy is the enemy.

Sadly you can't make this shit up either :-/

@qwertyfla1 well said

CC, rlbdcky

Again valid points but the North American tariffs will be knocked down by the WTO once it does wind its way through that process but its a long road to travel. Trump knows this and is using this "tool" to America's advantage and all this is is a negotiating leverage point to expedite "gooderest" NAFTA and trade deals.

Nothing will come of this except reverse tariffs, lots of huffing and puffing of both sides, more essays from TheSteve and a new NAFTA deal with some slight US favored concessions. As far as the other countries... -my crystal ball predicts better trade deficits and more amicable tariffs going forward like what Beijing is now finally proposing.

Trumps methods may be crude and cavemanish but it is the end result that matters most and everyone (Canada excluded) has been having an unfair ride on the us coattails for far too long. For them to be screaming unfair is quite rich and complete BS after one considers the massive trade deficits that have unfairly compounded for years now.

Trade is suppose to be a mutually amicable 2 way street -not a single lane express way. There will be some short term pain in these trade wars but in the long run the end result will justify the means.

Is the cost to import aluminum & steel really significantly cheaper to make in the US? How about importing the raw materials to US?

We've seen some significant US steel companies shut down in the past 20-25 yrs - which didn't really make sense considering how much US manufactures need it.

China is our true ally? WTF? China is not a democracy and Germany and has been our ally for over 70 years. China steals American trade secrets challenges us in the south Pacific. The biggest threat from China is their treatment of intellectual property which the TPP addressed, but which Drumpf pulled out of and now wants back in.
And the wishful thinking that the WTO will fix everything?!? Already our allies are preparing tariffs against us.
Why does this poster child for ADD run a 14 trillion dollar economy like a corner grocery store? Why does his attack our allies and cozy up to dictators?

Financial ally possibly. There are so many US companies with Chinese investors that cover a wide range of major industries including tech-software/hardware, banking, auto, distribution, etc. The Chinese have also heavily invested in US corporations with operations in China as well.

A war would be silly. They're making so much money from the US - it's a known joke.

trump is hamfisted and uninformed in everything he does. He is till riding the wave of of a 6 year bull market and improving economy that he had nothing to do with at all. The impact of of his tariffs - two independent studies found that they will cost more jobs than create - and amateur foreign policy will be felt for years.
That impeachment better come fast.
Oh, and quertyfla1, Drumpf has no regard for democracy.