Trump announces 25% tariff on all imported vehicles!

[DaveB]

I went from 2+ cups of coffee and 2-3 red bulls a day to no caffeine at all cold turkey and realized that I felt no different at all, so I switched to decaf a few years ago... I've tried a half-caf once since then, that was a mistake according to my better half who had to deal with me

hell no.......I would have replaced the "better half"

 

[rsdc1]

I hope that they make the Grenadier in the US. It is a key market, supplier BMW is already here and, if the Quartermaster is subject to the chicken tax, manufacturing it here would change the economics. I think I read that Lynn Calder had looked at it a few years ago.

Opening a factory in the US is possible- she stated that in an interview the other day. But it won’t happen overnight. Also if the components are shipped in from Europe I don’t see how that helps any. He’s got everyone over a barrel and he knows it

 

[parb]

And when he gets as far as Tasmania he'll have reached coffee nirvana

It's definitely on the list. Would love to visit.

 

[derek0343]

Is it fair that your Country extracts from the United States 1 TRILLION dollars every 5 years. Why? The EU as well almost as bad. Brazil is horrible, It is extortion on the US Economy. What kind of US President sits there while this happens under his watch? All of them for the last 100 years, except now.

This is the most funny statement I ever see, hope you enjoy the 104% tariff on China product which just announced today!

 

[Tazzieman]

This is the most funny statement I ever see, hope you enjoy the 104% tariff on China product which just announced today!

No more cheap carbon fibre trim stickers for your Ineos!

 

[LabRat]

No more cheap carbon fibre trim stickers for your Ineos!

I've been absolutely amazed at the IG compatible parts on eBay coming out of China. The tariffs will make paying the freight for stuff from Australia or Europe be a bargain.

 

[DaveB]

Opening a factory in the US is possible- she stated that in an interview the other day. But it won’t happen overnight. Also if the components are shipped in from Europe I don’t see how that helps any. He’s got everyone over a barrel and he knows it

there are zero US manufactured components in the Grenadier that I am aware of.
The entire vehicle would either need to be re-engineered or an entirely different vehicle manufactured just for the US and about 10,000 sales a year.
Due to reciprocal tariffs they wouldn't be able to export it.
Much easier just to revise their sales in US downwards to <5,000 units and focus on other markets.
I am pretty sure they will bring in a Fusilier size model in next 2-4 years which will be popular in UK & Europe as well as Asia.
As it is a ladder frame design they can lengthen, shorten, narrow and even widen(?????) it if needed.
Let's face it they are always going to be a 20,000 -30,000 vehicle a year manufacturer at most.


I still feel they will sell the company in the next 5 -7 years to another manufacturer.
If they sell to BMW maybe they can add it to their Spartanburg Factory.

 

[mcdoogs]

there are zero US manufactured components in the Grenadier that I am aware of.
The entire vehicle would either need to be re-engineered or an entirely different vehicle manufactured just for the US and about 10,000 sales a year.
Due to reciprocal tariffs they wouldn't be able to export it.
Much easier just to revise their sales in US downwards to <5,000 units and focus on other markets.
I am pretty sure they will bring in a Fusilier size model in next 2-4 years which will be popular in UK & Europe as well as Asia.
As it is a ladder frame design they can lengthen, shorten, narrow and even widen(?????) it if needed.
Let's face it they are always going to be a 20,000 -30,000 vehicle a year manufacturer at most.


I still feel they will sell the company in the next 5 -7 years to another manufacturer.
If they sell to BMW maybe they can add it to their Spartanburg Factory.

They bought their current factory, so the company doesn’t even have experience with bootstrapping new auto factories. Even if they did, or they bought an existing factory from someone for somewhere near the same price (wasnt it around $1B) it’d take decades to break even depending on the unit economics. And thats not even factoring in r&d to re-engineer the car to actually have some domestic sourced parts. There’s a reason only the big volume manufacturers devote major capex to building US factories after all

 

[Cncpt2]

there are zero US manufactured components in the Grenadier that I am aware of.
The entire vehicle would either need to be re-engineered or an entirely different vehicle manufactured just for the US and about 10,000 sales a year.
Due to reciprocal tariffs they wouldn't be able to export it.
Much easier just to revise their sales in US downwards to <5,000 units and focus on other markets.
I am pretty sure they will bring in a Fusilier size model in next 2-4 years which will be popular in UK & Europe as well as Asia.
As it is a ladder frame design they can lengthen, shorten, narrow and even widen(?????) it if needed.
Let's face it they are always going to be a 20,000 -30,000 vehicle a year manufacturer at most.


I still feel they will sell the company in the next 5 -7 years to another manufacturer.
If they sell to BMW maybe they can add it to their Spartanburg Factory.

Like it or not, they'll need the US market to stay afloat unless sales (sans USA) pick up dramatically.

 

[holdmybeer]

Is it fair that your Country extracts from the United States 1 TRILLION dollars every 5 years. Why? The EU as well almost as bad. Brazil is horrible, It is extortion on the US Economy. What kind of US President sits there while this happens under his watch? All of them for the last 100 years, except now.

I’m not following this “extracts” talk … are these not consensual transactions? Is someone being forced to buy a product? Or are they buying a product that they just don’t like the price or origin of?

Trade, unless a literal gun is to your head, is a free choice. It’s fair because two parties agreed to do it and neither had a gun to their head. And if you don’t like it, don’t do it but don’t accuse someone of extraction. That’s childish.

It’s so weird to me that a “republican” administration wants MORE government interference in trade.

 

[Tazzieman]

I am pretty sure they will bring in a Fusilier size model in next 2-4 years which will be popular in UK & Europe as well as Asia.
As it is a ladder frame design they can lengthen, shorten, narrow and even widen(?????) it if needed.

Lifted by 4" plus should sell well

 

[DaveB]

Like it or not, they'll need the US market to stay afloat unless sales (sans USA) pick up dramatically.

That is really just something people in USA like to think.
They will just need to restructure, launch other models as suggested, add more special editions and maybe target the URBAN https://www.urban-automotive.co.uk/ customer market more with Arcane.
If they are not going to be at all competitive in the USa then they may as well just increase their price by 50%, blame tariffs and make some US specific models.
Portals, lifts, higher output engines, lowered etc etc.
There are still plenty of people in the US willing to pay $150-$200K for a unique vehicle.
Remember that none of this impacts Canadian or Mexican sales so they can change their focus from US to those markets.

 

[DaveB]

They bought their current factory, so the company doesn’t even have experience with bootstrapping new auto factories. Even if they did, or they bought an existing factory from someone for somewhere near the same price (wasnt it around $1B) it’d take decades to break even depending on the unit economics. And thats not even factoring in r&d to re-engineer the car to actually have some domestic sourced parts. There’s a reason only the big volume manufacturers devote major capex to building US factories after all

Yes
You are 100% correct

 

[S52]

That is really just something people in USA like to think.
They will just need to restructure, launch other models as suggested, add more special editions and maybe target the URBAN https://www.urban-automotive.co.uk/ customer market more with Arcane.
If they are not going to be at all competitive in the USa then they may as well just increase their price by 50%, blame tariffs and make some US specific models.
Portals, lifts, higher output engines, lowered etc etc.
There are still plenty of people in the US willing to pay $150-$200K for a unique vehicle.
Remember that none of this impacts Canadian or Mexican sales so they can change their focus from US to those markets.

Except Mexico already has tariffs on imported vehicles. (20%) plus their high 16% VAT

So buying a Euro import in Mexico will actually still be more expensive than in the USA lol.

Using a new BMW as an Example:

Importing a new BMW from Germany into Mexico involves several taxes and fees. Here's a detailed breakdown:

1. Import Duty:

• Standard Import Duty: Vehicles imported from countries without a free trade agreement with Mexico, such as Germany, are subject to a 20% import duty on the vehicle's value.

2. Value Added Tax (VAT):

• General Rate: A 16% VAT is applied to the sum of the vehicle's value and the import duty. Doing Business in Mexico

3. New Car Tax (Impuesto sobre Automóviles Nuevos - ISAN):

• This tax applies to all new cars imported into Mexico and varies based on the vehicle's value. The ISAN is calculated on the customs value plus import duty and other import-related duties, excluding VAT.

4. Customs Processing Fee (Derecho de Trámite Aduanero - DTA):

• A fee of 0.8% of the vehicle's value is charged. If this amount is less than $258.91 MXN, a flat fee of $258.91 MXN applies.

Example Calculation: For illustrative purposes, let's assume the customs-assessed value of the BMW is $50,000 USD.

• Import Duty: $50,000 × 20% = $10,000
• VAT: ($50,000 + $10,000) × 16% = $9,600
• ISAN: Varies based on vehicle value; refer to Article 3 of the ISAN Law for specifics.
• DTA: $50,000 × 0.8% = $400

Total Estimated Taxes and Fees:

• Import Duty: $10,000
• VAT: $9,600
• ISAN: (Variable)
• DTA: $400
• **Total: $20,000 plus ISAN

 

[holdmybeer]

Meanwhile, the latest fight on the ticket looks like this...

 

[DaveB]

No idea if either of these US politicians are good, bad, or ugly but it is certainly hitting some good points and also hitting the news in Australia.
First 2 minutes is the bit I refer to.

View: https://www.youtube.com/watch?v=lajsxV5zH2s

 

[DaveB]

Except Mexico already has tariffs on imported vehicles. (20%) plus their high 16% VAT

So buying a Euro import in Mexico will actually still be more expensive than in the USA lol.

Using a new BMW as an Example:

Importing a new BMW from Germany into Mexico involves several taxes and fees. Here's a detailed breakdown:

1. Import Duty:

• Standard Import Duty: Vehicles imported from countries without a free trade agreement with Mexico, such as Germany, are subject to a 20% import duty on the vehicle's value.

2. Value Added Tax (VAT):

• General Rate: A 16% VAT is applied to the sum of the vehicle's value and the import duty. Doing Business in Mexico

3. New Car Tax (Impuesto sobre Automóviles Nuevos - ISAN):

• This tax applies to all new cars imported into Mexico and varies based on the vehicle's value. The ISAN is calculated on the customs value plus import duty and other import-related duties, excluding VAT.

4. Customs Processing Fee (Derecho de Trámite Aduanero - DTA):

• A fee of 0.8% of the vehicle's value is charged. If this amount is less than $258.91 MXN, a flat fee of $258.91 MXN applies.

Example Calculation: For illustrative purposes, let's assume the customs-assessed value of the BMW is $50,000 USD.

• Import Duty: $50,000 × 20% = $10,000
• VAT: ($50,000 + $10,000) × 16% = $9,600
• ISAN: Varies based on vehicle value; refer to Article 3 of the ISAN Law for specifics.
• DTA: $50,000 × 0.8% = $400

Total Estimated Taxes and Fees:

• Import Duty: $10,000
• VAT: $9,600
• ISAN: (Variable)
• DTA: $400
• **Total: $20,000 plus ISAN

Yes that is already in place so not impacted by new tariffs in the US.
VAT or GST is usually calculated on the sell price of the vehicle at the dealer, not the import cost so in that case it will be even higher.
Most countries have VAT (Value Added Tax) GST (Goods & Services Tax) or Sales Tax.
That is normal.
Australia used to have tariffs on imported vehicles to protect the Australian manufacturing arms of General Motors and Ford.
We don't have Tariffs anymore and definitely not on US made vehicles or any US products.
We do have stamp duty and GST as per mine below,.

 

[Tazzieman]

Vance insulting Chinese peasants hasn'tgone down well. What makes a peasant anyway? A poor person with no escape?

China Creates Mocking AI Video of Average Americans Working in Garment Factory

As Donald Trump drags the US economy into the gutter, Chinese netizens are poking fun at the reversal of fortunes his policy represents.

futurism.com

 

[Gaffer]

there are zero US manufactured components in the Grenadier that I am aware of.
The entire vehicle would either need to be re-engineered or an entirely different vehicle manufactured just for the US and about 10,000 sales a year.
Due to reciprocal tariffs they wouldn't be able to export it.
Much easier just to revise their sales in US downwards to <5,000 units and focus on other markets.
I am pretty sure they will bring in a Fusilier size model in next 2-4 years which will be popular in UK & Europe as well as Asia.
As it is a ladder frame design they can lengthen, shorten, narrow and even widen(?????) it if needed.
Let's face it they are always going to be a 20,000 -30,000 vehicle a year manufacturer at most.


I still feel they will sell the company in the next 5 -7 years to another manufacturer.
If they sell to BMW maybe they can add it to their Spartanburg Factory.

Alternatively, Ineos could contract with BMW to manufacture the Grenadier in Spartanburg. It would spread some of BMW's fixed costs so improving BMW's profitability on the margin, limit BMW's risks of ownership of Ineos while overcoming Ineos' lack of experience in building its own manufacturing capacity.

 

[drinkmorejava]

Alternatively, Ineos could contract with BMW to manufacture the Grenadier in Spartanburg. It would spread some of BMW's fixed costs so improving BMW's profitability on the margin, limit BMW's risks of ownership of Ineos while overcoming Ineos' lack of experience in building its own manufacturing capacity.

Don't be silly. BMW would never agree to such poor finishing standards. It would bankrupt Ineos to have to pay to not have visible glue globs and creases in my leather.