New 25 % tariff on mavericks on 02/25 [LOCKED DUE TO POLITICS; INFRACTIONS GIVEN]

[Joe Strummer]

Three points: First, the 25% applies to the value contained in the Customs Declaration Form (CDF). FoMoCo (USA) would be the importer and would pay the Tariff. FoMoCo (USA) has a licensed subsidiary in Mexico (FoMoCo (Mexico)).

If FoMoCo (USA)'s MSRP is $30,000, the value on the CDF would be significantly less (say $20,000)). Hence the Tariff collected by Customs would be $5,000, not $7,500.

How FoMoCo (USA) chooses to pass on the Tariff is unknown.

Second, the value declared on the CDF will only relate to the "value" added in Mexico. If Hermosillo is simply an assembly plant, with engines, transmissions, etc manufactured in the USA (as is required under NAFTA V2.0), then the CDF value may be very low.

Finally, NAFTA 2.0 does not allow the USA to unilaterally impose tariffs without a valid reason. Illegal immigration and drugs are not valid reasons since they have nothing to do with manufacturing.

Sponsored

 

[icegradner]

Finally, NAFTA 2.0 does not allow the USA to unilaterally impose tariffs without a valid reason. Illegal immigration and drugs are not valid reasons since they have nothing to do with manufacturing.

Unless of course the US just renegs on NAFTA 2.0.

 

[galoki]

Three points: First, the 25% applies to the value contained in the Customs Declaration Form (CDF). FoMoCo (USA) would be the importer and would pay the Tariff. FoMoCo (USA) has a licensed subsidiary in Mexico (FoMoCo (Mexico)).

If FoMoCo (USA)'s MSRP is $30,000, the value on the CDF would be significantly less (say $20,000)). Hence the Tariff collected by Customs would be $5,000, not $7,500.

How FoMoCo (USA) chooses to pass on the Tariff is unknown.

Second, the value declared on the CDF will only related to the "value" added in Mexico. If Hermosillo is simply an assembly plant, with engines, transmissions, etc manufactured in the USA (as is required under NAFTA V2.0), then the CDFvalue may be very low.

Finally, NAFTA 2.0 does not allow the USA to unilaterally impose tariffs without a valid reason. Illegal immigration and drugs are not valid reasons since they have nothing to do with manufacturing.

Great explanation. I saw this in his first term when he tarrifed China. Selling computer products I could see how manufacturers were charging customers for it.

 

[ianjay]

When tariffs were placed on home appliances when he was last in power, prices in the stores soared and sales fell flat. Tariffs are hard to remove, but they finally did. When they did, appliances got cheaper. Who pays? You do. The country of origin doesn't. If the manufacturer wishes to absorb the tariff, then fine. But 25 per cent is a large number. On the purchase of a washer/dryer - not too bad. On vehicle, it is going to hurt someone. Who knows?

 

[Prickly Pear]

Mexico? Don't you mean South North America

 

[Billy]

A lot of opinions above.
Opinions are like cowboy hats.

 

[Bob The Builder]

I was wondering how long it was going to take for this thread to start.

Hopefully things are going to get worked out between now and then. If not, well, look on the bright side, all those unsellable '24's waiting on the camera fix will be one hell of a deal.

 

[BlueXLT]

That is what we voted for

I'm damn sure not in that we.

 

[BlueXLT]

Yea ! Mavericks will have 25 % tariff as of 02/25 . Fortunately I have mine . click , click , click or ignore .

Don't worry everyone Ford will just start making them in America for a lower price. Because reasons... Vote for Trump!

 

[Snox801]

I dont care about politics, tbh. my life doesn't change either way whoever in charge. I work for my money and I buy my products, this is only directly affecting me because I placed an order lol so yeah. if it does happen and im price protected, thats cool/good. sucks for people who dont pay in time.

but this is the world we are going into. we are being encouraged to invest, and not hold money, thats for sure. people who hold money are losing out bad. inflation is brutal.

myself included, I lost out gambling on investments, so I have been paying off my house. if I paid all the money towards house into stocks, id be up 10x more. but whatever.

oh yeah, im just 1.5 months of payments from paying my house off!!! 8 years into my 30 year loan.

The math doesn’t seem to to add up to smiles like 10x on that investment. But think of how much interest you saved. Saved is as good or better then gained.
I paid off my first house in 6 years with zero investments and it was a great feeling. Sold it 10 years later for double what I bought it for and it sold instantly. Can’t wait to pay off my new one.
Congratulations.

 

[710-oil-614]

$50k for a $20k truck?! Insanity!!!!

 

[710-oil-614]

The math doesn’t seem to to add up to smiles like 10x on that investment. But think of how much interest you saved. Saved is as good or better then gained.
I paid off my first house in 6 years with zero investments and it was a great feeling. Sold it 10 years later for double what I bought it for and it sold instantly. Can’t wait to pay off my new one.
Congratulations.

I’ve got a 2.49% fixed rate mortgage and an HSA that pays 4%. I’m not paying a penny early on that bad boy!

 

[colinl]

OK, so everything I see here is speculation. No sources are cited at all.

go anywhere. CNN, Fox, Bloomberg, Yahoo finance, Washington Post.

 

[Cherokee]

The point is to get people to buy 'Made in America'.
I would call It a victory if the Tariff forced
Ford to move all manufacturing back inside the 48 states
and employ American workers.
All Ford would have to do Is factor in a greater cost of labor.
I doubt that would raise the price more than 10 to 12%
BUT My Ford's would be American Made and I'd gladly pay more for that !

Now If we could get Ford to make Its own parts, Like Elon did with Tesla.
He made so much money that he is now paving the way to build Star Ships at a rate of 100 per month.
His Cyber truck plant Is In Texas. Not Mexico.
Betcha no body saw that coming.

 

[710-oil-614]

The point is to get people to buy 'Made in America'.
I would call It a victory if the Tariff forced
Ford to move all manufacturing back inside the 48 states
and employ American workers.
All Ford would have to do Is factor in a greater cost of labor.
I doubt that would raise the price more than 10 to 12%
BUT My Ford's would be American Made and I'd gladly pay more for that !

Now If we could get Ford to make Its own parts, Like Elon did with Tesla.
He made so much money that he is now paving the way to build Star Ships at a rate of 100 per month.
Betcha no body saw that coming.

Tariffs will be across the board so unless it is American Made with American Parts you’re going to pay some level of the tariff.

Tariffs for Trump not trying to bring business back to America it’s a border control strong arm.

Sponsored