35% import tariff on BMW threat - Trump.

[ZenOps]

http://www.theglobeandmail.com/report-on-business/trump-threatens-bmw-with-border-tax-on-cars-built-in-mexico/article33628676/

That's right around ballpark as to what I would be thinking Trump would be shooting for.

Watch out for *things* to get expensive soon.

[killramos]

Yea that sounds about what it would cost to start manufacturing cars in the US.

Looks like M's and AMG's will be on par between Canada and US soon enough again :rofl:

[J-hop]

Brutal, how is this supposed to benefit the US again?

Such a narrow minded fool. The people on the manufacturing floor aren't the only people who work in the auto industry...

[phreezee]

I don't like this type of crony capitalism, but the socialists should love this.
They complain that there are no jobs and the income gap is too large.
They advocated for the higher corporate taxes that drove the jobs to other countries.
They should now advocate the tariffs that either bring jobs to the US or boost domestic sales.

[jacky4566]

So the chicken tax is getting an upgrade?

Also as a socialist I disagree on corporate tax. We need to move more to a progressive consumption tax.

[Mitsu3000gt]

Could Americans just come up here to buy then? Or would the tax also be on Canadian --> USA transfers?

[killramos]

Considering thats how the duty system works now I would say nope they won't be able to come up here and get them unless FX makes it worthwhile after factoring in the duty.

Most Americans like the SUV's anyways of which all BMW and MB's are made in the good ol' USofA.

Just us who want the fast models made in germany who will get the shaft.

[benyl]

Originally posted by Mitsu3000gt
Could Americans just come up here to buy then? Or would the tax also be on Canadian --> USA transfers?

It's based on country of origin.

When you import a BMW into Canada that was built in Germany from the USA, NAFTA doesn't apply. You pay the 6% duty that you would normally pay.

[sputnik]

I think it is pretty naive to think that this wouldn't affect Canadian customers as well.

The European cars sold in Canada are basically build with the USDM specifications. If they stop selling certain models in the US what would be the point of having a USDM spec car just for a market as small as Canada?

[dj_patm]

Pretty sure all 3 of them have plants in the US too?

So all of the Audi, Mercedes and BMW USA corporate staff don't matter? They're supposed to lose competitiveness so that some factory jobs are created?

[rage2]

Originally posted by sputnik
I think it is pretty naive to think that this wouldn't affect Canadian customers as well.

The European cars sold in Canada are basically build with the USDM specifications. If they stop selling certain models in the US what would be the point of having a USDM spec car just for a market as small as Canada?
Good thing that Canada recognizes and adopts some Euro standards, which is why the Merc B and Smart cars made it here and not the US. With CETA now underway, more standards are being adopted. Merc Canada is trying to bring the A class here under the CETA changes because unlike the US, Canadians actually like hatchbacks. That's a car that will never hit the US market.

[killramos]

Originally posted by rage2

Merc Canada is trying to bring the A class here under the CETA changes because unlike the US, Canadians actually like hatchbacks. That's a car that will never hit the US market.

Is this actually true? Timeframe?

[benyl]

CETA needs to be ratified first.

[rage2]

Originally posted by benyl
CETA needs to be ratified first.
Nah, just need approval, which is coming in February. It's then adopted on a provisional basis before it gets ratified.


Originally posted by killramos
Is this actually true? Timeframe?
I talked about this on AM770 last year. References:

http://www.theglobeandmail.com/globe-drive/news/tale-of-the-red-tape-in-the-car-industry/article17119866/


Reuss points to two models that could come to Canada right away if European standards were accepted: the Mercedes A-Class subcompact with new technology, featuring brake lights that flash if a car is approaching too quickly from behind, and the all-wheel-drive version of the Sprinter commercial van.

http://www.cbc.ca/news/politics/canada-eu-trade-ceta-update-1.3929318


More than two years since the negotiations concluded, CETA_still needs approval from the European Parliament. It is expected to give its verdict in February.

Even after the European Parliament vote, CETA would only_enter force provisionally. But this provisional application is expected to bring well over 90 per cent of the deal into force, with the exception of controversial reforms to the investor-state dispute settlement (ISDS) system.

[killramos]

Fuck. Awesome.

I want an A so bad, tried to get my wife to buy a GLA on multiple occasions. Gunna have to put the big boy pants on and buy an A for myself then :D

Time frame might be just about right for me too.

[rage2]

Don't get your hopes up just yet. It depends if the standards adopted by CETA will in fact cover the differences needed to bring the A Class here. Only Mercedes-Benz knows the answer to that. The original article was in 2014 which talked about why Canada should stop waiting on the US and start adopting all EU automotive safety standards to give us more options. All we have now is MB Canada wants the A Class here, and more EU standards are getting adopted in February.

[killramos]

Don't worry, i don't believe anything until i see an order sheet.

I consider this just as likely to be my next car as an M2 CSL.

Still promising though!

[NoPulp]

'Merica!
So strong and independent. :rofl:

[Sugarphreak]

....

[killramos]

Starting? All the guy is doing is exactly what he said he would.

That people all the sudden find this surprising is what is laughable.

[Gestalt]

I wonder how much money his insiders make shorting these stocks he then publically threatens.

:rofl:

[rage2]

Originally posted by Gestalt
I wonder how much money his insiders make shorting these stocks he then publically threatens.

:rofl:
I feel bad for his insiders, because the stocks have been going up as he threatens them.

[phreezee]

German minister to Trump after tax threat: ‘The U.S. needs to build better cars’ :rofl:

http://www.marketwatch.com/story/german-minister-to-trump-after-tax-threat-the-us-needs-to-build-better-cars-2017-01-16?siteid=rss&rss=1&link=sfmw_fb

[Feruk]

Maybe someone has finally figured out Trump's "35% import tax" is nonsense.

[killramos]

^ Yea just as much nonsense as the 50-100% gas guzzler taxes in scandinavia...

Never underestimate the ability of politicians to pull off something ludicrous.

[Feruk]

Congress has already pretty much all but said they won't be putting up a 35% tax, and Trump cannot impose more than a 15% tarrif.

[Toms-SC]

TIL: Canada has a tariff on car imports including Mexico

http://www.obj.ca/Other/Archives/2001-01-25/article-2221747/Edge-held-by-auto-makers-ends-with-6.1%25-car-tariff/1

[Stuart]

Originally posted by Toms-SC
TIL: Canada has a tariff on car imports including Mexico

http://www.obj.ca/Other/Archives/2001-01-25/article-2221747/Edge-held-by-auto-makers-ends-with-6.1%25-car-tariff/1

To be fair, if the numbers in the article are correct the tariff on a $30,000 Mexican car would be $1.80.

[tirebob]

This may be a dumb question, but purely from a speculative standpoint, if Trump was successful in tagging BMW with a 35% tariff against new car importations, will this inadvertently increase the value of used BMW's? If 1 year old 3 series is worth 65 percent of new (just picking a number for arguments sake), will that same car be worth 35% more on the used market the day after a new tariff is implemented?

Just a thought...

[JustinL]

Originally posted by tirebob
This may be a dumb question, but purely from a speculative standpoint, if Trump was successful in tagging BMW with a 35% tariff against new car importations, will this inadvertently increase the value of used BMW's? If 1 year old 3 series is worth 65 percent of new (just picking a number for arguments sake), will that same car be worth 35% more on the used market the day after a new tariff is implemented?

Just a thought...

I think it is reasonable to assume that, but the percentage would be trickier to predict. A 35% tariff wouldn't translate into a 35% price increase on a new vehicle. And a whatever price increase in a new vehicle wouldn't translate directly into increased used vehicle prices. It's a push in the upward direction, but how the market reacts would be somewhat unpredictable.

[ZenOps]

Y'know. For what its worth, Trump does know when things are overpriced and when they are cheap.

He is grinding down the ridiculous price of the F-35 jet fighters to a more reasonable level. I mean seriously, you could buy 10 Chinese fighters for the price of a functional as long as you don't fly it too high or take too sharp a turn F-35.