Sorry I ment to say your Honda was assembled in the United States but the majority of the parts to assemble it are imported so they will have a tariff applied. Lesson to me, proof read and don’t post when you first wake up.
So it changed from Mexico to the United States. Funny.
Funny? I initially meant to say US and not Mexico. I apologized and corrected the mistake. The statement still stands true that even vehicles that are manufactured in the US are going to be hit with a price increase. Also many of these parts can cross the border multiple times and every time they do, they will be subject to the tariff.
Yeah you did. There has been a 2.5% tariff on importing Japanese cars to the U.S. (25% on trucks), just about forever. You didn't even notice it. Because a tariff won't appear on an invoice. It's built into the MSRP.
Where did you ever read that I said it was a fact I just said it would be nice I could care less I'm not buying a new vehicle won't apply to me.
They showed you the "MSDC" = Manufactures Suggested Dealer Cost not what the Dealer winds up actually paying. Think about it. They have a lot and building worth $3-$10,000,000 plus several thousand/ month utilities. The figures they show cannot come close.
As said above I picked up the Honda's at the Honda Ohio Factory...Honda has 6 factories in the US and Canada. None of my 4 Honda's have ever been to Japan. I ship DAILY to other countries, including Mexico and Japan. The ONLY "tariffs" I ever pay are 1. 2% customs duty for receipt at various sea ports...which was on parts shipped...never over $5 or $10...we consider it postage.
I was panicking when Russian tanks poured across Ukraine's borders in a full scale invasion, and the market reaction to having a major food exporter invaded plus Europe's main energy supplier suddenly becoming an adversary was not unjustified. Inflation was also starting to bite very hard right about then and that didn't help at all.
You paid tariffs on the parts that were put in the vehicle during assembly.
When Ukraine started, I had an elaborate plan to hoard Wheat Thins and sell them later at a huge profit. Glad I didn't go forward with that one.
Manufacturing takes place in other countries for only one reason, it’s cheaper to make them elsewhere. Factories don’t just spring up. It takes years to get a plant to be built and start putting out product. It’s also going to make the cost of everything manufactured in the US more expensive. We will see if Americans can stomach the cost of everything going up. Also remember that manufacturing is not the same as it was 30 years ago. Almost all manufacturing is done robotically to increase production and save money by not hiring humans.
Proximity to markets and component supply chains are also major factors, but you're definitely right that increased automation = fewer actual jobs. There's no chance auto manufacturers are going to spend billions of dollars reshoring production of ICE vehicles when there is no certainty on long term policies, and definitely lot low margin economy vehicles that are desperately needed now. Every vehicle you can still buy under $25k is in the crosshairs, and the only pickup under $30k.
Yep, and the newer the factory the more it is going to be automated. Humans are screwed until the robots unionize. Oh wait, isn't that Skynet?
