If TRUMP Were To Impose A 25 Percent Tariff On Mexican-made Autos, Would The President Actually Be Doing Us A Favor?

If TRUMP Were To Impose A 25 Percent Tariff On Mexican-made Autos, Would The President Actually Be Doing Us A Favor?
So, a thought occurred to me after parsing the news from the last 48 hours. First off, President Trump is sticking to his guns on Mexico. There's no doubt about that.

Second, he's puffing his chest out — again — as it relates to the border.

Now I don't subscribe to the thinking that a car built in a specific place will automatically render it worse than a vehicle built in a different region. We know that's not the case as automakers like Honda, Toyota, BMW and Mercedes-Benz build great products right here in the good 'ol U-S-of-A — and it's not like we've always been known for building the most solid autos in history.

BUT, I know a bunch of folks who do.

For example, in the Volkswagen community it was always thought better to get a "German-built one," versus a Mexican-built vehicle.

That said, the thought crossed my mind: Would President Trump actually be doing much of the buying public a favor if he implemented a 25 percent tariff on Mexican-built vehicles? OR, would he just be harming consumers who costs will surely be passed along to?

What say you, Spies?


...After backing away from a threat this week to immediately shut the border to stop a surge of migrants from Central America, Trump raised the specter of a 25-percent tariff on cars as a possible tool he could use to force Mexico to halt illegal immigration and drugs.

"Before we close the border we'll put the tariffs on the cars. I don't think we'll ever have to close the border because the penalty of tariffs on cars coming into the United States from Mexico at 25 percent will be massive," Trump told reporters at the White House.

Earlier, Trump said he would give Mexico "a one-year warning" to stop drug trafficking, or face tariffs. But he held out the possibility that the measure could be used sooner to address migration issues...


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SanJoseDriverSanJoseDriver - 4/6/2019 2:12:50 AM
-2 Boost
That would probably destroy most of the US auto industry, would be great for Tesla though. Oh, prices would go up for all cars as well.


PUGPROUDPUGPROUD - 4/6/2019 5:25:24 AM
+6 Boost
No it would destroy the Mexican economy in days, bring rise to massive demonstrations in its streets causing its government to change its policies and come around to Trump's way of thinking to eliminate the tariffs. Well over 2 million Mexicans work in the auto industry and 70% of all Mexican automotive production is exported to the US, second only to Japan in total value. To the "Sky is Falling" opponents to Trump's plan I say " When you got them by their cojones their hearts and minds will follow."


MDarringerMDarringer - 4/6/2019 8:28:04 AM
+2 Boost
The Mexican government needs to be told "No, no se puede." Getting them by the cojones WILL get their minds to follow. Who give a rat's ass about their hearts. SanCarloseJoseAsshatterDriver just has no clue as to how business really works and why should he? He works for Tesla that's propped up on taxpayer money.


SanJoseDriverSanJoseDriver - 4/7/2019 11:24:52 PM
+1 Boost
Yeah, you think Americans are going to pay 25% more for Mexican-made cars? No, US auto companies are going to either have to move the factories or eat the tariffs, neither of which is economically possible right now. Likely they will just shut down the factories, which means lower revenue, less supply for consumers, and higher prices for us except for the few car companies not using Mexico factories.


qwertyfla1qwertyfla1 - 4/6/2019 8:36:03 AM
+8 Boost
Murica is the biggest consumer market in the world and Trump is the "collusion free" Chief so he can bloody well dictate terms to Mexico which depends on the USA for its financial livelihood and has free loaded enough already. Time for Mexico to start being a good neighbour and give something back to the hand that feeds it.

Mexico should pay for the wall and do more to stop this mass migration that is taking place world wide. we can't fix all the worlds problems for all the people by simply moving them out of the shit holes they come from. Nor should the US always have to bear all the costs of this humanitarin aid and be the worlds policeman.

Trump is a crude and rude bragadocious New Yorker who could use some more polishing to his delivery methods but he is 100% right on this issue and many others and calls it for what it really is. In this fucked up PC world of fake feminist world leaders (Mohammed Trudeau) and Useless Nations (UN) dictatorship Trump is a refreshing breath of fresh air that is calling out all the bullshit that plagues our modern socialist world. It is time for Mexico to have some skin in the game and start paying their fare share....

MAGA bitches!!!


HauergHauerg - 4/8/2019 2:00:29 PM
0 Boost
You should make an appointment with your doctor, Sir.


rockreidrockreid - 4/6/2019 9:59:16 AM
0 Boost
Get used to higher prices as US producers jack up their own prices in response to a Mexico tariff war. We’ve been through this before with Japan a few decades ago under Reagan when that administration used Quotas on Japanese cars. You don’t get anything for free.

Sure quotas and tariffs can create more auto industry in the US but it goes along with higher prices for cars and other related stuff too. The trade-off is this... do you as an average American want more auto industry here or do you want car prices to not rise quickly... you can’t have both.


CANADIANCOMMENTSCANADIANCOMMENTS - 4/6/2019 1:01:07 PM
-1 Boost
Putting a tariff on Mexican produced cars will do the same thing as the threat of of it did to German made cars, the got a response from the car makers, not the government. And in this case, the car makers are US firms. Each US car firm's CEO will call Trump and tell him to back off and not disrupt their supply chain. All car companies donate to the GOP cause. This will go nowhere, just like the idea of tearing up NAFTA and not having a new agreement. Just bluster and bravado.



TruthyTruthy - 4/6/2019 1:53:12 PM
-3 Boost
Not sure where to start on this. Trump calling out BS is probably the most laughable. Myeller's report hardly gave him a pass, Barr's 3 page summary did. This is why Mitch McConnel is trying like hell to keep it from the public.
If there was no collusion then why the 22 indictments, numerous guilty pleas, already one conviction and the big fish Roger Stone, the guy who coordinated with Assange and Russia to release stolen emails. Mueller thankfully passed much of his evidence to SDNY. More to come.
Additionally, a wall does not work. There are better ways to increase border security, but cheeto face wants a wall.
He has not drained any swamp. He has just filled it with lower life forms.
Read the article by Ray Dalio in Bloomberg. Dalulio is the billionaire founder of the world's largest hedge. In it he says capitalism in its current form cannot survive.
Since at least the 1980s wealth has amassed mostly in the top one percent. The top 5 percent now have a higher percentage of the US wealth than at any time since 1900.
We work more hours per year than any other of the top 20 developed economies, rank 17th in life expectancy (we are the only country in this group not to have national health care nor a requirement for pensions), 11th in education, etc.
We are ruled by the minority party. Mitch McConnell after shredding the constitution refused to replace a SC justice for a year despite being required by said constitution. 8 million more people voted for Democrats in Congress in 2016, yet with rigged gerrymandering Republicans took both house, the presidency and now the SC. And yet no one's lives have materially improved outside of the top 1 percent. Oh, and the debt has increased 77 percent with tRump, in a boom.

MAGA baby. What a sad joke.


MDarringerMDarringer - 4/6/2019 2:09:56 PM
+4 Boost
The immigration problem can be solved by cutting off the tap of providing welfare services to illegals. The immigration problem can be solved by cutting off the tap of being able to wire $148 billion a year out of the country. The immigration problem can be solved by cutting off the tap of easy money by letting Mexican goods come in without a quid pro quo. Walls work and the evidence of that is ample.


TruthyTruthy - 4/6/2019 3:17:28 PM
-4 Boost
The Maginot Line? The Great Wall?
Experts in border security have recommended with supporting data that more fencing, more border security agents, drones and other measures are far more effective than a wall.
More than half the illegal aliens and 70 percent of drugs do not come across the land border. It is a $50 billion solution that will accomplish very little.
Hey, I thought tRump negotiated a better trade deal with Mexico? (although in reality it changed very little).


PUGPROUDPUGPROUD - 4/6/2019 3:36:01 PM
+6 Boost
Ironic that politicians who oppose the wall and private gun ownership live in gated communities and have body guards with guns protecting them.


MDarringerMDarringer - 4/6/2019 5:11:17 PM
+3 Boost
@Truthy Of course you would point to French stupidity in an attempt to prove your point, but you point isn't based in fact. It's based solely in the Liberal hype-and-dogma show, but NOTHING empirical. You have the capacity to think for yourself, so stop taking all your "truths" from DNC central.


TruthyTruthy - 4/6/2019 6:53:39 PM
-4 Boost
Not just me, experts in border security. I know how Republicans hate experts - note the last two nominations to the Fed - but a $50 billion wall will accomplish little.
And walls can work around your house to keep small time burglars out, but a 1,000 mile border is much different. I know Sean Hannity will fake outrage about this, but it is the truth
Guns, there are 4 times as many guns in the US than there were when Reagan was president, making them very easy and inexpensive to obtain for criminals. In developed countries with gun control, the murder rate is a tiny fraction. The NRA only goal is to sell guns, period.


MDarringerMDarringer - 4/6/2019 7:50:49 PM
+2 Boost
and you double down....


TruthyTruthy - 4/6/2019 7:18:32 PM
-3 Boost
Don't get me wrong, I agree with putting pressure on Mexico. Those central American refugees have to traverse over 1,000 miles of Mexico. They can and should do more.


TruthyTruthy - 4/6/2019 7:19:06 PM
-3 Boost
And I respect your opinion.


TruthyTruthy - 4/7/2019 2:09:47 PM
-2 Boost
Someone give an example of a border wal for a large country that has worked. Part of your hoemwork is to find what percentage of illeagal alliens have come across the Mexican border/desert and what percentage of the illegal drugs in the US have taken this route. One caveat, your source cannot be Fox news [sic] nor info wars.


qwertyfla1qwertyfla1 - 4/7/2019 5:21:05 PM
+2 Boost
The Berlin Wall worked very well indeed. Too bad they tore it down and let in all the West German gypsies and whores. That was the beginning of the end of Germany and Merkel has put the destruction into overdrive.


TruthyTruthy - 4/8/2019 10:55:31 AM
+1 Boost
The Vatican and the Berlin walls are very small. No one is trying to get into either one. Also. Israel's is very small. Thank you for making my point.


TruthyTruthy - 4/7/2019 4:28:58 PM
-1 Boost
Enough politics, I want to discuss cars and those of us that want to drive real cars, not rolling batteries, have the same opinions. You are all successful enough to afford that I have to respect your views.
Plus everyone I know gun owners permit in Illinois are responsible as hell.
Enjoy the rest of the weekend.


senftsenft - 4/8/2019 5:19:50 PM
+1 Boost
We've had this discussion already. Of course consumers would be getting screwed far more than anyone else in the chain.
Of course, Crooked Donnie's only a businessman in unsupported self-claims and lies.


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