tariffs showing its effect - prices for aftermarket wheels

[MakinDoForNow]

When I retired from the Cancer business, Oncology.
I took a fun Job. I was a Guard at Ports America in Tampa Fla. We got a ship load of Aluminum cold rolls every other week. Some where around 150 class five flat beds came in for days to haul the Aluminum. That was one not so large port. We need Industry here.

I have owned Alcoa stock for many years. One CEO purchased downstream companies to even out the P&L sheet from the price fluctuations of aluminum. However after several years the takeover buyers shifted into gear and Alcoa split into two companies to get better deal for share holders. Which worked out really well for me. Alcoa had setup Arconic to own the value added businesses which later split into two companies. Arconic kept the rolling mills at least one of which Alcoa had built that could roll sheets large enough for Boeing airplane wings saving thousands of fasteners needed to join sheets together. Apollo later purchased 100% of Arconic and I did not roll $$$ into Apollo. The airplane and jet engines parts, fasteners, including titanium castings, forged heavy truck aluminum alloy wheels remained with the new company Howmet Aerospace which I stupidly sold at 64.00 now 184.00. This is one of the stocks that caused me to implement the rule = if you buy a stock you must keep 10% even if it's only 10 shares for ten years. Amazon is another. Biggie was 200 shares of Berkshire Hathaway in 1971-1972(?) for $38 (now about $750,000).

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[scott1070]

Tariffs are having the necessary effect.
I think it was Whirlpool, the largest manufacturer of house hold appliances has just signed a lease for a plant in Illinois.

They are moving ALL manufacturing operations back home !
Ford, get it together or get left behind.

Those Whirlpool appliances will cost twice as much to purchase if they’re going to be made domestically.

 

[heady]

Heh, if we think stuff is expensive now, just wait a minute. The trade deficit exploded after the tariffs went into effect, imports are roughly the same, down about 0.1%, but our exports plummeted. Countries are right now working on an anti-US trading block to trade amongst themselves and kick the US out of the loop on international trade negotiations. JPow just got threatened to resign, so you can hopefully imagine what happens when neither monetary or fiscal policy is being used to control price inflation any more. Good luck.

 

[Lone Ridr]

When I retired from the Cancer business, Oncology.
I took a fun Job. I was a Guard at Ports America in Tampa Fla. We got a ship load of Aluminum cold rolls every other week. Some where around 150 class five flat beds came in for days to haul the Aluminum. That was one not so large port. We need Industry here.

The consumer gets ripped off. Ford makes the Maverick in Mexico to keep the price down. If they make it here, the price will go up a bunch. Look at my wheel price increase. Every time Uncle Sam says he is going to help us, THIS is what happens.

 

[Emmett Hebert]

If the tarfifs don't get you the Unions will!!! A main reason for a lot of companies moving

 

[heady]

Ironically, even though we've known protectionist policy has been economically harmful for about 300 years since Adam Smith basically invented capitalism and wrote about it Wealth of Nations in the 1700's, it's something that both left and right populists have advocated for over and over since that time, with predictable results every single time; they know the average person has never taken an econ class and operates on vibes and feelings instead. Sucks to suck, US dollar has lost >10% of its value since the beginning of the year on top, for the same reasons. We'll pay the price (on our wheels in this case) every time.

 

[Lone Ridr]

The consumer gets ripped off. Ford makes the Maverick in Mexico to keep the price down. If they make it here, the price will go up a bunch. Look at my wheel price increase. Every time Uncle Sam says he is going to help us, THIS is what happens.

I scuffed a rear wheel and ordered a replacement, thus the real-world cost differential. It isn't a popular wheel. I am supposed thy ran out of stock and ordered more at the new price - fat chance. I'm pretty sure I am being gouged. I have the name of a repair shop and will have the slightly damaged wheel repainted on the bright aluminum edge. The comments that I have gotten on the wheels are about who lowered the truck, how much? The truck hasn't been lowered, it just appears that way to some. If I hadn't delayed the purchase of the new tires that were 1 inch wider and the same diameter, the wheel wouldn't have been damaged. It just has a light scuff through the clear-coat. That is the price I paid for being frugal. The Tire Discount store took two of the Shrader valves out of the original valve stems when they changed them out. I discovered this when I peeked in the boxes a couple of days after I took them home. I voiced my displeasure in a loud voice in the store full of customers when I ordered the replacement wheel - calm, not angry. The Lariat has 4300 miles on it. I still have time to decide if I will upgrade the tires when I take it in for the wheel replacement. I will use my smart phone and make a video of the pristine paint when I do a walk-around before handing them the keys. I may pay them for the wheel and take it to my regular tire store.

 

[Cherokee]

Do you think they will be able to get employees to do factory work?

Easy, suspend the internet. That will force all the couch potato’s to go find something to do.
:’P

 

[IHateSpeedbumps]

Easy, suspend the internet. That will force all the couch potato’s to go find something to do.
:’P

Haha okay. Sure thing. Take an econ class and pay attention.

 

[asylus]

Tariffs are having the necessary effect.
I think it was Whirlpool, the largest manufacturer of house hold appliances has just signed a lease for a plant in Illinois.

They are moving ALL manufacturing operations back home !
Ford, get it together or get left behind.

Whirlpool made makes great washing machines that just need a belt every 5 years but lets see how it works out when America introduces planned obsolescence. Prices won't go down if thats what you mean by necessary effect, in fact this price ride only goes up.

 

[Cherokee]

Whirlpool made makes great washing machines that just need a belt every 5 years but lets see how it works out when America introduces planned obsolescence. Prices won't go down if thats what you mean by necessary effect, in fact this price ride only goes up.

“necessary effect”
Getting companies including Ford to move manufacturing home.
To employ Americans,
To stop sending our wealth to foreign countries,
To export, not import,

 

[IHateSpeedbumps]

“necessary effect”
Getting companies including Ford to move manufacturing home.
To employ Americans,
To stop sending our wealth to foreign countries,
To export, not import,

All of that will just increase the cost of the products.

 

[Cherokee]

All of that will just increase the cost of the products.

Inflation, always happens, nothing new.
We were better off before so much of our money went overseas.

 

[IHateSpeedbumps]

Inflation, always happens, nothing new.
We were better off before so much of our money went overseas.

But we will never get back to that if we try to manufacture everything in country. This has been shown in countless studies. Please take an econ class or two and pay attention. You are living in a fantasy world.

 

[heady]

Let's say an aluminum wheel factory relocates due to the taxes paid by the importer, this is unlikely, but possible.

First, they have to finance a large capital expense to build the factory, this increases the liabilities on the balance sheet, and will need paid off by charging more for the product. They will have running costs and input costs like raw materials, labor, and energy. The labor is more expensive in the US, unless they locate the factory in one of the states where they are reducing/eliminating child labor protections, worker safety, and minimum wage, for example. Even then, most manufacturing is automated, which is where the manufacturing jobs in the US went in the first place - they didn't go overseas, they went to robots; our manufacturing sector has been constantly growing, and is larger than it's ever been in history.

Finally, when your imported competition faces a tax you do not, that is an implicit subsidy to your business, you do not sell your wheels cheaper than the market price you can get for the wheels, which is boosted by the disadvantage to your imported competition, so you raise your price to match. The increased prices will reduce demand for wheels in the affected market.

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