This was supposedly one of the better/smarter cabinet picks.
Treasury Secretary Bessent says Trump tariffs won't cause inflation to increase
The Treasury secretary's comments come just two days before the tariffs are scheduled to go into effect.www.cnbc.com
They have American names on them. But a lot of it is assembled elsewhere. Or the components going into them come from elsewhere. All of those products come with increased costs.
Products manufactured overseas by American companies. One of the companies I am referencing is the one I used to run. So I know exactly what they and their competitors are doing on this front. Beyond that I have some friends in C level positions in other orgs large and small. Everyone is passing the tariffs along. I know of no one planning to eat the cost themselves. Not saying that won’t happen, but I bet it is a rarity when it does.
One part I'm looking for clarification on is what connection to the US the company must have. For example, does a "tundra" that's manufactured in Texas by a Japanese company gwt them?
Well it is hard for me to say exactly where Trump will land as he keeps flip flopping and creating this stupid economic uncertainty.
If you are asking these questions you obviously don't know shit about tariffs or how they work. I applaud your desire to learn. Tariffs have been based on where the product is manufactured regardless of ownership. Trump could spring something different, but that's how they have worked in the past.
Look at it again, my question has to do with how it will be established and on what counts towards what.
See the rest of my explanation. I had accidentally hit post before I was finished. It's where the product is manufactured. If you want to go even deeper in the weeds there's a big issue with the way the reciprocal tariffs are also being discussed. The Trump admin is currently considering VAT as a tariff in Europe for the reciprocal calcs. That's kind of nuts as it's paid whether imported or manufactured there. It would mean they'd bump tariffs on products coming to the US from Europe by 20% in response and it's not a valid logic.
And that is what he and I were discussing towards what counts as manufactured.
The seats would be tariffed. Toyota would absolutely pay extra to import the seats. The work they do to install those seats in the US would not be tariffed, nor would the actual Tundra if made in the US. In this case Toyota has the decision on whether they would raise the overall price of the finished Tundra to recoup the extra cost of the seat tariff.
And if the seats are made here it's very likely at a higher cost and the prices won't go down. Meanwhile anyone that was making the seats in a different country that isn't tariffed that is a competitor will raise prices because they are "market facing". Also they could possibly make them here with a high level of automation, but that's capital intensive and whatever they invested in overseas is now wasted capital, so prices still may not come down. In a limited number of circumstances competitors may hold off increasing prices for a while because they need to gain or regain some market share, but eventually the prices will go up. I'm not against strategic tariffs that are based on unfair competition. What Trump is doing is not that. It's like a whiney 4 year old with a limited understanding of the system and some vague concept of fairness is making the decisions.
By who? And at what cost? It's as if you think companies import parts and goods despite having equivalent alternatives being manufactured here in the US.
No he's not. He's claiming tariffs will benefit US taxpayers right away by paying for things like child care.
Every part that is imported is tariffed at it's declared value based on a specific code. With the tariffs on aluminum and steel, Toyota, Subaru, Honda, etc. that decided to move production to the US will all be paying 25% more for the steel and aluminum that they use to build their cars. There is not enough domestic steel made to produce the cars being built here in the US.
