According to FT:
Gabriel Ehrlich, an economic forecaster at the University of Michigan, predicts the price of domestic and imported vehicles will increase 9.6 per cent on average over the several years it takes supply chains to adapt to Trump’s tariffs.
“Using 2024 prices this would raise the average cost of a vehicle by roughly $4,500 if profit margins stay the same,” he wrote in September.
Ehrlich said he also expects tariffs to trigger a decline in domestic car production, with the output of light vehicles falling by 313,000 units, or 3.1 per cent, annually. Light vehicle sales will fall by nearly 780,000 units a year and exports by 320,000 units, he predicted.
According to fool49:
Trump's policies will lead to job cuts in Michigan and the automotive industry. High unpredictable tariffs, make it hard to do business, when you have long product cycles and global supply chains. Nobody might shed a tear for the big three automakers, but hundreds or thousands of small suppliers are also hurting. Tarrifs are bad for both businesses and consumers.
Thank you Trump.
Reference: Financial Times
Tarrifs are having the opposite of the intended effect – they are hurting businesses (and also consumers)
byu/fool49 ineconomy
Posted by fool49
3 Comments
They don’t. They always intended to hurt small businesses. I didn’t see those motherfucking small businesses donate to Trump! How dare they? They better transfer some money to his personal account right now. The Saudis did. Putin has been doing this for years. Fuck those cheap small business bastards. Give him your money! Big Oil did. And see how he’s wiping the floor with the communist BLM Antifa dead-bird windmill renewables industry. Why does Obama, the antichrist and Kenyan Muslim maharaja, hate America? Biden’s economy is crashing. Thanks Trump for saving America. Sincerely, Russia
The intended effect was to cause economic chaos through a series of dramatic random changes to trade policies. Everything is going as planned.
They are having the intended effect.