Issues with Tariffs, both Mexico AND Canada [ADMIN WARNING: NO POLITICS; MEMBERS ALREADY BANNED FOR IT]

[Prickly Pear]

Has anyone looked at this tariffs thing this way??

If Mexico and Canada was to do what Trump is asking, that the tariffs would go away.

If they do not, Mexico and Canada could cause another 1929.

Oh Please!

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[Joe Strummer]

Your overall explanation is excellent Joe, but just to clarify a bit for others who may not completely understand your point above and using your example.

If say the customs declaration on a shipment of softwood lumber from Canada was 100K the importer would pay 25K to the US collections dept (or whatever they are called). Now say if the cost of producing that softwood lumber including shipping was say 60K (40K CDN profit), then perhaps the shipper can afford to pay part of the 25K tariff. However if the profit is only 10K then it wouldn't make sense to absorb the tariff. Supply and demand. In reality the extra import duties (or at least a portion of them) will be paid by the end purchaser, and likely uplifted some % along the way. In other words, the person buying the home the lumber is used for.

The tariff is 100% paid for by the US importer. The Canadian exporter cannot pay the tariff. All the Canadian exporter can do is either lower the price charged to the US importer ($100,000 reduced to say $87,500 in your example) or offer a rebate.

Lumber mills are closing down or going bankrupt like crazy in BC, mainly due to (i) higher costs of felling trees in our mountainous terrain and (ii) a lack of trees (referred as fibre) to government policy and the pine beetle infestation. A 25% tariff on top of 15% existing duties (40% in total) on BC lumber will effectively destroy the sector.

 

[Deleted member 7089]

The Maverick is mentioned in this Axios report.


2 hours ago - Business
U.S. auto industry is in the tariff crosshairs

• Felix Salmon

Illustration: Sarah Grillo/Axios

Cars that are made in America aren't only made in America — they're made across North America.

• As a result, Trump's across-the-board tariffs on all trade with Mexico or Canada risks making U.S. autos much more expensive than foreign imports.

Why it matters: The U.S. auto industry could shut down within a week, by some estimates, thanks to these tariffs. Even if it doesn't, there is no automaker that's set up to operate in a world of high-friction North American border duties.

The big picture: With modern supply chains, a single component in a vehicle can cross the U.S. border between six and eight times before final assembly.

• Trump's order makes it clear that duty is payable every time any component crosses into the U.S. — there's no "drawback" allowed that limits the tariff to just the value added abroad.

Zoom out: What that means is that the 25% tariffs won't just be payable on full vehicles that have their final assembly in Mexico, like the Chevrolet Equinox or the Ford Maverick.

• They're also going to affect nearly all of the components in nearly all cars made in North America, often multiple times over.
• Aside from the actual tariffs themselves, there's also no infrastructure in place to even place a precise dollar value on all the components that travel back and forth, let alone fill out customs paperwork on them.

The bottom line: If you add up all the tariffs that are going to apply to U.S.-made vehicles, they could easily end up dwarfing total tariffs on finished cars imported from Europe, Japan, or Korea.

• Far from boosting the U.S. auto industry, these tariffs, if they stay in place for any length of time, could end up decimating it.

 

[Milton Jeff]

Oh Please!

Well it will be interesting to see how the markets react this week. That does concern me as we are so intertwined... Now I could get even more pessimistic.. Remember 1812? ok, ok maybe I am over reacting....

 

[MakinDoForNow]

Just read the tariff actually goes into effect Monday...

AKA = The first work day after 2/1/25

 

[icegradner]

Has anyone looked at this tariffs thing this way??

If Mexico and Canada was to do what Trump is asking, that the tariffs would go away.

If they do not, Mexico and Canada could cause another 1929.

I think America is doing just fine at causing it's own problems, but it's always easier to blame someone else. I mean Canada could put heavy tariffs on US goods just to cover all the legal costs of dealing with the massive number of illegal guns coming into the country from the US. It's not a one way street. Both sides have faults, pointing fingers and taxing everything won't solve the problems, but government will never get that.

 

[FreedomPenguin]

I think America is doing just fine at causing it's own problems, but it's always easier to blame someone else. I mean Canada could put heavy tariffs on US goods just to cover all the legal costs of dealing with the massive number of illegal guns coming into the country from the US. It's not a one way street. Both sides have faults, pointing fingers and taxing everything won't solve the problems, but government will never get that.

why doesn’t Canada allow guns? Idk. It’s weird to me, i grew up around guns, worked around guns, everyone I know and their siblings and grandparents etc has guns.

I couldn’t imagine not having guns in society. Then it’s like, Canada has none and they are neighbors

Has Canada ever had guns?

 

[icegradner]

why doesn’t Canada allow guns? Idk. It’s weird to me, i grew up around guns, worked around guns, everyone I know and their siblings and grandparents etc has guns.

I couldn’t imagine not having guns in society. Then it’s like, Canada has none and they are neighbors

Has Canada ever had guns?

We do have guns. That why I said, illegal guns, ones that are not legally allowed to be sold here.

The only difference is the ownership of fire arms is much lower in Canada. We're nice like that. Fire arms are legal for hunting purposes, there just isn't the need for defensive fire arms, since everyone isn't hauling lead.

 

[23grayXLT84]

Has anyone looked at this tariffs thing this way??

If Mexico and Canada was to do what Trump is asking, that the tariffs would go away.

If they do not, Mexico and Canada could cause another 1929.

Delusional, that is all I'm going to say.

 

[FreedomPenguin]

We do have guns. That why I said, illegal guns, ones that are not legally allowed to be sold here.

The only difference is the ownership of fire arms is much lower in Canada. We're nice like that. Fire arms are legal for hunting purposes, there just isn't the need for defensive fire arms, since everyone isn't hauling lead.

Are there many people in Canada news defending themselves shooting other people? Ie. Someone robbing house etc?

 

[icegradner]

Are there many people in Canada news defending themselves shooting other people? Ie. Someone robbing house etc?

Mostly gangs and cops have guns, the gangs basically just shoot each other. Sure break ins happen, but shootings aren't a big problem for the average person. My city has a gun club, some people enjoy target shooting. I cannot think of a time in my life where having a fire arm would have improved the situation. I have used one for target practice with an American friend who I went to college with, but never felt the need to use one again. We just have a very different gun culture here.

 

[FreedomPenguin]

Mostly gangs and cops have guns, the gangs basically just shoot each other. Sure break ins happen, but shootings aren't a big problem for the average person. My city has a gun club, some people enjoy target shooting. I cannot think of a time in my life where having a fire arm would have improved the situation. I have used one for target practice with an American friend who I went to college with, but never felt the need to use one again. We just have a very different gun culture here.

We have gangs here, twice a week I hear shootouts and drive bys, but as long as they killing eachother meh no one cares. Police don’t even respond unless there’s a body.

Dayton Ohio is bad place lol, trotwood Ohio is insane, drugs and guns. It’s literally they do is shoot eachother with their little gangs

I keep a mossberg 500 tactical shotgun for home defense, plus it looks cool. lol

 

[Milton Jeff]

Has Canada ever had guns?

lol, well this is a "loaded" question. Have you ever been to Canada?
There are approximately 1/3 of the guns per capita in Canada compared to the US. Big difference is the types of guns, ie no assault-style firearms, these are prohibited in Canada except in specific circumstances. I think the US has more that 1 per person (including children).

 

[FreedomPenguin]

lol, well this is a "loaded" question. Have you ever been to Canada?
There are approximately 1/3 of the guns per capita in Canada compared to the US. Big difference is the types of guns, ie no assault-style firearms, these are prohibited in Canada except in specific circumstances. I think the US has more that 1 per person (including children).

I drive through it once, drove from Alaska to Ohio, has to cross border but I didn’t stop other than food and fuel.

I know nothing about Canada but the people was really nice to me along My trip

 

[Joe Strummer]

The Maverick is mentioned in this Axios report.


2 hours ago - Business
U.S. auto industry is in the tariff crosshairs

• Felix Salmon

Illustration: Sarah Grillo/Axios

The big picture: With modern supply chains, a single component in a vehicle can cross the U.S. border between six and eight times before final assembly.

• Trump's order makes it clear that duty is payable every time any component crosses into the U.S. — there's no "drawback" allowed that limits the tariff to just the value added abroad.

I'm not convinced this is true. Take as a counterfactual example the following scenario (made simple to illustrate the point). A Ford Maverick is 99.99% manufactured in the US (including parts and assembly) at a cost of $25,000 and shipped to Mexico. In Mexico the windshield wipers (.01%) are attached (at a cost of $10) and the truck is shipped back. Do you think the tariff applies to $25,010 or just $10?

If it is the former, the US car industry in the US in short run is dead. But if you are dead in the short run you are also by definition dead in the long run.

If it is the latter, then the car industry can survive in the short run and restructure in the long run.

We'll find out tomorrow when stock markets open (you bet Wall Street has been pouring over this all weekend).

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