Update: Auto tariffs suspended 1-month

[colinl]

I assume you Ford is working on a 5-7% NET profit margin

according to their SEC filing for 2024 calendar year, Ford's net profit margin was 3.18%. however, that's including massive losses from the Ford model e, the electric division.

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[Edge Haley]

I'm sure the Maverick's are a little bit higher, but the write-off of R&D will be recovered in a year or two.

 

[AzureBlueBill]

From the US Dept of Commerce official website of the International Trade Administration.

" A tariff or duty (the words are used interchangeably) is a tax levied by governments on the value including freight and insurance of imported products. "

Import Tariffs & Fees Overview and Resources

I'm sorry Bill, but while you say it's not a tax, the Government of the United States of America declares that it is a tax. I do get why politicians though when enacting them hate using that word in public.

But tariffs are never applied that way, far as I know. There have been tariffs on thousands of products coming into the U.S, for years. You'll never see it listed as a "tax" on a sales invoice. It's appliied at the border, and it is up to the importerto pay it. If, and how, the importer get the money from the customer (us) is up to them. It sure as hell is not a scumbag car dealer's job to collect it!

 

[Edge Haley]

But tariffs are never applied that way, far as I know. There have been tarrifs on thousands of products coming into the U.S, for years. You'll never see it listed as a "tax" on a sales invoice. It's appliied at the border, and it is up to the importerto pay it. If, and how, the importer get the money from the customer (us) is up to them. It sure as hell is not a scumbag car dealer's job to collect it!

Directly from the US Federal Tax Guide:

A tariff is a tax levied on imported goods and services.
Historically, tariffs were a major source of revenue for
many countries and were often the primary source of
federal revenue through the late-nineteenth century. Today,
other taxes account for most government revenue in
developed countries. Tariff taxes are typically used
selectively to protect certain domestic industries, advance
foreign policy goals, or as negotiating leverage in trade
negotiations. Resellers collect the tax for the
tariff from the consumer and payment is paid to the
US Federal Government.

The big difference with the Maverick is Ford owns the plant, Ford owns all the equipment, truck owns all the parts, motors, body panels etc and "profits"...Mexico is simply providing a cheaper labor force...penalizing Ford's Maverick, Bronco, F150's(parts) etc. sales is not penalizing Mexico it's penalizing Ford and American consumers. Mexico gets jobs but most important they're helping Ford squeak out a little profit.

I hope this thread does not get stopped because it is a healthy discussion to know now Tariffs work...cause right now most consumers are being totally misinformed (AKA Buffowed) and really need to know what is going on.

Regarding getting it back on tax return...not hardly. Tariff can be subtracted from adjusted Gross Income but that will not get you back the full about of the tariff, just reduces from taxable income...might save you a few hundred in taxes.

 

[zen_]

If it's not economically feasible for Ford to assemble the Maverick and Bronco Sport in the US, they will just kill them since no one in the right mid would pay 25%, or even 10% more for either of these vehicles. This would also be terrible for current owners since it will make parts even more scarce and expensive.

Not sure what the end game here is since anger over it becoming increasingly impossible to afford to just exist is what propelled Trump to victory in November, but he's ready to enact a policy that has a 100% probability of causing food and transportation prices to increase again, possibly quite dramatically.

 

[Edge Haley]

If it's not economically feasible for Ford to assemble the Maverick and Bronco Sport in the US, they will just kill them since no one in the right mid would pay 25%, or even 10% more for either of these vehicles. This would also be terrible for current owners since it will make parts even more scarce and expensive.

Not sure what the end game here is since anger over it becoming increasingly impossible to afford to just exist is what propelled Trump to victory in November, but he's ready to enact a policy that has a 100% probability of causing food and transportation prices to increase again, possibly quite dramatically.

Won't get into the details (I'd get banned) but Mexico's tariffs are nothing compared to Canada. Ten US states get the vast majority of their electricity from Canada which will be hit with tariffs...also very alarming to some of Ford's vehicle plants in the NE states and in Canada.

https://www.newsweek.com/states-impacted-canada-cuts-electricity-exports-tariffs-map-2039498#:~:text=In addition to New York,and International Studies (CSIS).

 

[oysterville]

Speaking of canned replies, it's threads like these where I actually miss the whole
"Hi there! Would you mind sending us a direct message with your VIN and local dealer, and we can look into those tariff issues for you."

I iggied that account a while ago. Don't miss it.

 

[oysterville]

But tariffs are never applied that way, far as I know. There have been tarrifs on thousands of products coming into the U.S, for years. You'll never see it listed as a "tax" on a sales invoice. It's appliied at the border, and it is up to the importerto pay it. If, and how, the importer get the money from the customer (us) is up to them. It sure as hell is not a scumbag car dealer's job to collect it!

I see your cited definition of "tariff" and I raise with "as far as I know".

That's like going all in, AFAIK.

 

[Linc64]

Tariffs, no tariffs, carve outs? It all leads to chaos. Markets don't like uncertainty.

 

[Blue_Max]

I iggied that account a while ago. Don't miss it.

It announced that it's iggie-ing the whole forum a few months back.

 

[oysterville]

It announced that it's iggie-ing the whole forum a few months back.

If only they had DMed me their VIN I could have helped.

 

[FischAutoTechGarten]

OK, now he's saying there will be a 1-month exemption:
https://apnews.com/article/trump-ta...hina-lutnick-2b269614084027a4894aa14f3dc16227

How many more tariff topics will be created here over the next 30 days? And what will he do in 30 days? And what if he changes his mind before 30 days are up?

You should have created a new Tarriff post for this...

Speaking of canned replies, it's threads like these where I actually miss the whole
"Hi there! Would you mind sending us a direct message with your VIN and local dealer, and we can look into those tariff issues for you."

Absolute best reply of this thread.... My iced tea shot out of my nose!!

 

[Carlitos_92]

It announced that it's iggie-ing the whole forum a few months back.

But now there is no incentive for the geezers to learn what "DM" stands for, or to get a tutorial on "starting a conversation."

 

[AzureBlueBill]

Directly from the US Federal Tax Guide:

A tariff is a tax levied on imported goods and services.
Historically, tariffs were a major source of revenue for
many countries and were often the primary source of
federal revenue through the late-nineteenth century. Today,
other taxes account for most government revenue in
developed countries. Tariff taxes are typically used
selectively to protect certain domestic industries, advance
foreign policy goals, or as negotiating leverage in trade
negotiations. Resellers collect the tax for the
tariff from the consumer and payment is paid to the
US Federal Government.

The big difference with the Maverick is FORD owns the plant, Ford owns all the equipment, truck owns all the parts, motors, body panels etc and "profits"...Mexico is simply providing a cheaper labor force...penalizing Ford's Mavrick, Bronco, F150's(parts) etc. sales is not penalizing Mexico it's penalizing American consumers. Mexico gets jobs but most important they're helping FORD squeak out a little profit.

I hope this thread does not get stopped because it is a healthy discussion to know now Tariffs work...cause right now most consumers are being totally misinformed (AKA Buffowed).

All I was trying to say is that you won't see a line-item called "Tarrif" on a new vehicle window sticker or invoice. It does not work that way. Japanese cars have been subjected to US tarrifs forever. Have you ever seen that on a window sticker? I have not. And it better not show up as a "tax" or whatever you want to call it on a dealer's invoice. They don't collect the tarrif. If they are trying to get extra money from you that way, it is called fraud. The price of goods will reflect the tarrifs. How much of the tarrif gets passed onto the customer is up to the manufacturer/importer, not the retailer/dealer. Many auto makers have already stated that 100% of the tarrifs will not be passed on to the customer.

 

[shadow76]

Had a Hybrid AWD XLT on order at a firm price quote and deposit. Dealer emailed me this AM and price will go up $3,800 so I asked for my deposit back...I was not desperate for the XLT. If I do not get my deposit back quickly, I will be PO'ed.

Please advise on final result. A friend is in a similar circumstance.

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