Something overlooked - this applies to parts imported as well as completed cars. So unless you're digging the raw materials out of the ground, you're paying the tariff one way or another.
Tariffs hurt consumers. Not importers. There is no guarantee of more jobs. In fact there could be fewer jobs due to reduced sales. Higher prices reduce demard.
But gosh darn it, we need those jobs no matter what! How are we going to reduce our double-digit sky high unemployment rate of **checks notes** 4.1%!!!
MAGA is too stupid to understand. Wait until the prices rise and they will rise across the board, even for domestic products. We warned you MAGA but your racism blinded you.
Well the mere threat of tariffs has the CEO of BMW saying maybe European countries should stop charging the 10% on imported US vehicles as they've been charging for decades while the US has only been charging them 2.5% all this time. See how just mentioning tariffs already causes them to talk about taking action beneficial to the USA? And nothing has even been done.......Trump just said the word "tariff." That is a big part of the strategy. And now VW is looking to build Audis and Porsches here in the USA to avoid more tariffs on their vehicles. See how this works??
14 годин тому+5
@ Since the US tariffs are a done deal, Germany and all other countries will increase tariffs on US goods by the same amount the US is charging.
They are not a done deal. So far it is only supposition. Trump is throwing the word out there and watching how countries and companies react. Nobody has said any tariff is a done deal. There are no effective dates. There are no signed documents. Didn't you see in this video the CEO of BMW has said that Europe should consider dropping THEIR tariffs from 10% down to 2.5%, like the US charges them now? Didn't you see in this video where VW is considering building more cars here to avoid the tariffs if they were to increase?
Voting really has consequences. We just bought our 2 fully battery electric vehicles capitalizing on the $7500 tax credit and this should hold us for at least another 8 years. I’m watching with my popcorn 🍿 and smiling.
I'm not smiling, just hoping things don't get dramatically worse. But given who's getting important posts around the government - let's say I'm not optimistic...
Your show quoted a source a month or so ago that said over 50% of new vehicles in the U.S. are purchased by people who earn $250k or more annually. Looks like that is about to get worse.
14 годин тому+1
It also means 50% of new vehicles are purchased by people making less than 250K.
Time for them to start building cheaper options. I'm sick of seeing pickup trucks. $50,000. They are going to have to take all that fancy crap out and build a $20,000 truck if there's going to be 10,000 in tariffs on it.
True! Once it was clear I was permanently working from home, we ditched the cost of the second car. We've gotten along just fine with one the last couple years.
You can't build cars in your living room (though I wish!). The pandemic did a number on the supply chain. Can't get that shiny new car in a pandemic-driven buyers' market if there are no new cars in that market.
Not commuting does not imply not needing a vehicle. Take it from me, I stopped having to commute 25 years ago. My wife and I still use both of our vehicles. A person who feels that they need or do not need a vehicle is generational... younger people are more prone to using Uber and Lyft, for example, or e-bikes, etc. It isn't a pandemic thing per-say. Working from home definitely does not remove the need for transportation, nor does it imply that a person would want to down-size their vehicle (commuter vehicles already tend to be small). If anything, they would want to up-size the vehicle because their fuel costs have dropped massively. -Matt
Oh no... says the folks who donated money to Trump and voted for him. Dealers will be happy because they can use this as an excuse to raise prices in advance. This works just like bad news in the oil market. Gas prices go up BEFORE the impact of the event.
@@dreysbimmer - No new cars for sale in the USA are made entirely in the USA. Tesla's cars are #1 in US made, but they still use many parts from other countries. Most vehicles are less than 50% US made, which means a 20% tariff will increase the cost by at least 10%. And expect retaliation from other countries adding new tariffs too. Be prepared for inflation likely we've not seen in 50 years.
People spend too much money on cars they don’t need ,wanting a new car when there is nothing wrong with the one you have is just wasteful. Once you buy a new car they start depreciating if you trade your car every time you pay it off is not financially prudent cause you know your trade in is not any where near market value.
Have a look on the American class 8 truck market. US drivers who try the trucks from the outside of the land of tariffs usually say the American trucks are 30 years behind in everything. Americans gets to keep their jobs and the products doesn’t need to compete. The customers have no choice but to pay for inferior products. Bruce Wilson shows of a Scania to American truckers on his UA-cam channel. Entertaining to say the least.
They'll pass the increase to SOME customers, the rest simply won't be customers. Those that were going to wait 3 years to get something new will wait 4 or 5, those with leases might buy instead of buy new... and the slowing of sales and the reduced availability of used cars will gradually cause some combination of reduced volumes and higher prices throughout the industry over the next few months to a year. ¯\_(ツ)_/¯
15 годин тому+3
They will pass it on and more, they are in business to make money not to give it away.
Who benefits from all this inflation? People taking out debt? That would mean CEOs living off the stock they paid themselves by taking tax free loans against them. High inflation helps the rich stay rich.
If he hasn't wiped his @ss with the constitution by then and find a way to hujack/suspend them. Think Project 2025 has something on that but maybe it's 2028. So far he is executing the Project exactly as written. Wonder if he finally read it.
So there's reasonable and factual comments being removed here. Autoline or YT doing the deed I've no idea, but the chilling of discourse since the coronation should be of concern to everyone.
Sean Duffy is a great candidate for Secretary of Transportation. He was a contestant on MTV's Road Rules reality show in 1998, so clearly he knows about transportation.
@@jase9951Scared of what? The Republicans flooded the streets of America with guns for decades to fight back against a tyrannical govt. Looks like that self fulfilling prophecy is coming true.
Best part is higher prices will ripple through the economy for years after. Lower new car sales volume makes higher used prices, making transportation more expensive. Good time to be in vehicle service and parts though.
Brasil has a 100% tariff on US made vehicles. Europe is among the lowest at 10%. In the USA our average tariff is around 3% if you consider all products. Recently my brother shopped for a pickup, and found that the Toyota Tacoma had a higher percentage of US content than the Chevy Colorado! Toyota is not stupid and has a big US manufacturing presence.
And only more expensive vehicles are made in the US. So the cheaper ones will be subject to the tariffs. These are the very ones purchased by people with less cash and poor credit ratings.
It's a shame there aren't any used cars that will not be impacted by tariffs for people to buy. I've always wondered why these folks screaming about new tariffs never seem concerned how most countries charge us more than we charge them.
14 годин тому+2
Could be because we don't pay the tariffs other countries charge just the tariffs (tax) the US charges.
The argument used often is that a tariff raises the cost of goods. If that is true, then the goods made domestically that compete with the American goods, are cheaper and therefore cost Americans money and likely jobs.
No tariffs in Canada or Mexico on American made vehicles. Yet Canada and Mexico are the first countries being targeted.
14 годин тому+2
@ The idea of a tariff is to protect a domestic industry from foreign countries dumping products here in the US and putting domestic industry out of business. Well that ship sailed in the 70's and most of the imported products coming into the US have no domestic manufacturers. So it just becomes an extra sales tax.
Factory price for a $50k vehicle is more like $25k…they don’t pay those wages, bonuses, benefits, perks, etc. without making massive profits. Year after year they reduce costs, use cheaper parts and increase productivity while increasing prices.
Can’t wait for truck prices to go up again, 50% of f150 parts are sourced from other countries. I guess Tesla and Honda prices will remain steady since they are the most American made cars.
EVs can not only navigate after they are built they can supply power for tools and testing and even move on their own while they are being built. 24 hour build lines are possible with very few humans.
@@TheLastMoccasin In a production environment the car can have tap points for power and testing. Don't really need standard plugs but the electronics for V2L do have to be there first.
@@frankcoffey Yes, I worked in a Tesla production environment for many years... hence mentioning that this feature should be given to the consumer. Also... a lot of Tesla production is actually very human intensive and a lot less automated than Elon wants you to think. Literally humans grabbing cells 8 at a time and manually putting them in storage boxes to then be unloaded by other humans manually later. When the automation doesn't work (quite often the case) they throw bodies at the problem.
My 1922 Model T still runs well, and looks really snazzy since I put the flat-black wrap on it. Now, if only I can find tires for it with a Z rating I can take it to the track!
Sounds like Tariffs would be a great way to unite OEM's against the Dealer franchise model, absorbing that Dealer Market into their own profitability.
14 годин тому
The manufacturers will just pass the costs on to the retailers and the retailers will pass it on to customers no matter what the product is. The tariffs effect all products, not just cars.
A modern vehicle has hundreds of large parts and tens of thousands of small parts. Asking automakers to source every single last part that goes into making the vehicle, right down to the electronic components on the circuit boards, is asking the impossible. Domestic automakers generally speaking can only source roughly 50% of the component inputs required to build a vehicle in the U.S., so blanket tariffs such as the ones Trump intends to impose will increase the cost of basically everything (whether it is "American made" or not). That is why there is the old saying... Tariff the final product, not the raw inputs. Which of course Trump is ignoring. In anycase, the knock-on effects can be catastrophic. People buy less when things get more expensive. Buying less means companies need fewer employees and start laying people off. Laid-off people spend less money. The cycle repeats and compounds. Trump is playing with a fire that could crater the entire economy.
14 годин тому
The tax (tariff) applies to all imported goods, not just cars.
With respect to Canada and Mexico, it would be interesting to know whether the US parent companies (gm and Ford) import more than they export to these two countries - that is, do these companies run a trade deficit or surplus with respect to the products that they import and export. I can’t recall seeing any figures that speak to this, and it might be insightful with respect to whether or not tariffs should reasonably apply to their situations.
It is class warfare. Nearly every public company has turned into a wealth generator for the CEO and board members. They pay themselves lots of free stock, take tax free loans off the stock, and then will do horrible things like layoffs of needed people just to pad the margins. Boeing's quality was destroyed by its CEOs doing actions that benefited their personal wealth but destroyed quality and safety.
He also wouldn't want to fire his accounts receivable department (IRS), guess Twumpy doesn't understand they only enforce the tax codes, it's the weasles in DC who create them. I pay my share, so should everyone else.
The USMCA rushed under Trump's first term requires Mexico to pay its auto workers $16 USD. It's the reason car prices went through the roof during Bidens term as Pres in office and one of the reasons trump is eager to renegotiate the USMCA in 2026, to hide Trump's failures from the first trade deal.
2:10 you sure can blame GM. Are they not in control of how many things they chose to do in Mexico. Americans are tired of manufacturing leaders acting this way. I hope they’re forced to bring the jobs back to America.
Sorry, but I don't see those "jobs" ever coming back for a variety of reasons. Not saying it wouldn't be good, but realistically, the high price of labor means either an automated factory here, or cheap labor elsewhere.
And keep in mind, that this video ends on sponser thats in the industry of selling the data from ev and fleet tracked cars. Of course theres a conflict of interest, he can only steer so around it 😂
The smartest consumers do not use bank loans to buy new vehicles as they are the fastest depreciating asset. You can purchase sort of fireworks. Smart consumers can surf off the supply of the used market.
6% profit margins on vehicles are good profit margins. The phone or computer you used to type this out is closer to 40 - 50%.. so who's the real bad guy here? There's not much left to cut.
Great content, as always! Could you help me with something unrelated: My OKX wallet holds some USDT, and I have the seed phrase. (mistake turkey blossom warfare blade until bachelor fall squeeze today flee guitar). Could you explain how to move them to Binance?
Hmmmm interesting that randomly BMW CEO has chosen today to challenge the EU on the American automobile import tariff 🤣🤣 He is clearly a good guy that is willing to fight for a level playing field, even for his competitors.
Let’s go for 100% tariffs. The US will get really rich! Heck, let’s go for 200%. We’ll all be rich and let the Europeans, Mexicans, Japanese, and Canadians work. They’ll give us money to buy their stuff….Ha Ha. No way!
The joke's on our new de facto king, President Musk. I bought a then-new EV back in 2023, so I am all set for the remainder of the warranty duration, and no: This EV is _not_ one of his crates. It was faith (or the lack thereof, in Tesla's case) in the product which had me seek any and every alternative to a Tesla EV. The Tesla 3 may have looked like the most practical option on an EV shopping list, but I was able to afford a brand-new spiffy EV because I endured 12 years in a run-of-the-mill plastic trashbox... and the reason I sought something other than a Tesla 3 was because I had just spent 12 years in a run-of-the-mill trashbox and _did not want to repeat more of the same._
7:30 well with the UAW and Teamsters, no other domestic automaker could even entertain this... I really wish the UAW would grow up and actually take on Tesla.
The Tariffs will only increase the price of foreign automakers that build their cars outside of North America. For ford and GM making cars in Mexico and Canada there won't be much of an increase if any at all.
The problem is that the component input costs to doing that are too high... and made even higher by Tariffs. Just moving final assembly is not enough. Attempting to make more parts in the U.S. would increase costs dramatically as well. So sure... they could make the car. But nobody is going to buy it at the price they'd have to sell it at.
Tesla cars performing what essentially is a parking lot self park feat. Big whoop. Already being done by others. 😂 now let's see them drive up on the transport truck. Then you can talk.
@@bobbbobb4663 the difference is that his 1% is surviving the trip with no errors. That's 100% success. The skydiver's 1% is death. So your example makes for false equivalence.
@@professionalelectronics3158 Not my issue you inferred that a fail during a skydiving session automatically means death. Maybe the chute doesn’t open. Maybe the altimeter fails. The outlier events are what have to be engineered out of FSD and that is not possible given the sensor suite, i.e. the algorithm has no idea these events exist.
@@bobbbobb4663 you pretended that his driving for 1% of the ride was equivalent to not having a safe skydiving session. Those are false equivalence. His 1% means putting his hands on the steering wheel and taking over. Your 1% leads to death.
But wait...wont the manufacturers just put tariffs on American cars...really, isn't China a huge market for GM? This could be a pissing contest where everyone gets soaked
It’s like an episode of The Boy That Called Wolf. The threats of tariffs are a bargaining chip. It’s already worked with Mexico, Canada, and Colombia. Calm down people.
Stellantis plans to build US Ram pickups in Mexico. HA! All those Mexican-hating MAGAs driving around in their Mexican trucks while rolling their Canadian diesel coal and flying their American flag made in Taiwan. _MERICA FIRST!_
Tariffs are only inflationary if you buy a car. Build all BMWs and Audis in non-union US factories, much less labor costs than Europe. Smartest people control our lives.
You understand that the Tariffs being threatened more or less increase the cost of EVERYTHING we buy, not just cars. Right? You do know that don't you? And the knock-on effects such as retaliatory tariffs by other countries destroy our export markets. So what do you think American companies will do when people buy fewer goods and their export markets are destroyed? Think carefully.
@@PD55_ Trump stopped thinking about it after about 5 seconds. Way too complicated. He still thinks other countries pay us. We're going to get so rich off of them! Tariffs penalize your own people, that's all.
why don’t you make an episode on the cost of ownership of vehicles for a life cycle of say 10 years?. this will be great to see if EVs are as good as they make out to be.
The tariffs won’t affect cars built in the USA, so no need to panic. Also it’s not fair that EU charges USA automakers 10% tariffs and we only charge them 2.5%. We should adjust our tariffs to match across the board!
Sorry - a repeate: No new cars for sale in the USA are made entirely in the USA. Tesla's cars are #1 in US made, but they still use many parts from other countries. Most vehicles are less than 50% US made, which means a 20% tariff will increase the cost by at least 10%. And expect retaliation from other countries adding new tariffs too. Be prepared for inflation likely we've not seen in 50 years. I agree we should have equal tariffs with the EU, but better to have zero tariffs. Just increases consumer costs.
A new car is the worst investment you can buy. Nothing like a depreciating asset and then add bad credit on top of that and pay the bank loan shark interest rates. Cash will always be king 💵
I'm planning on buying an AMERICAN built vehicle in the next 2 yrs. No real worries here. Tariff away in negotiations. Make US Great Again! Promises made, promises kept.
@TheElectrocar sorry, a Tahoe w/diesel. I have no issues w/Elon, but the quality of Tesla vehicles is terrible. Oh, and I built a career as a Quality Program Mgr.
I would be down for a crash in the new car market lowkey if the tariffs go into place. Might force automakers to get creative. Lets not pretend they are even making affordable models right now. This very channel said a few weeks ago rich folks are the ones buying new cars.
The way Europe unfairly destroyed US (and Japanese) imports since the 1960's-70's is despicable and I'm surprised it took this long for the US to react. It wasn't only tariffs that Europe used either.
I'm sorry but aren't going to cry that someone has to pay more for their underperforming VW when they could buy probably a better car made in Detroit. If the VW is worth 10K more, people will still buy it.
Ship our jobs off for cheaper labor and never pass on savings to the consumer. Go pound sand. Tariff the hell outta them all. None of us regular people can afford to buy anything so no loss here.
Yeah, I'd love to see the execs get their due but the fact is, when things go south, thousands of jobs will be lost. Those workers stop buying things, retailers lay people off. Then the manufacturers of other products. Then the people in the mines extracting the raw materials.
Everything the human race does has a carbon cost. But in terms of relative amounts of carbon, EVs are vastly lower in emissions and the zero does apply to domestic pollution which is a big deal in case you hadn't realized it. Also, even fossil power plants produce far lower emissions per mile driven for an EV than gasoline does when burned in an ICE, and a large and growing percentage of the grid is being powered by renewables which have a carbon cost to build but no carbon cost to produce. Basically, your argument goes up in smoke. Hahaha. Smoke. Get it? -Matt
@@donnolin2032 _but 13 kids died extracting the silica to make your panels so therefore solar panels are DEADLY! I never done got killed from no coal!_ /s
Tariffs are not going to push up any prices on Cars especially not $10K… someone is fear mongering, the EU is going to cave and drop the Import Tariffs they put on the cars from the US. Also, the Big 3 will bring back production to plants that were shipped overseas. Sick of the media not reporting on reality, most good jobs that used to be in the US got shipped overseas during the Clinton NAFTA debacle. (Will give the US lower prices, they said, will improve your buying power they said.) But what difference does it make if the people who were making good money lost their jobs.
Bring back production from plants shipped overseas? To where? Those plants are gone. You have no freaking clue how long it takes to get plants built and operational with the infrastructure and people with the right skills to operate them. 10+ years. Build a bunch at the same time and the costs skyrocket. Are automakers going to invest the BILLIONS it would likely take when Trump disappears in 4 years? When they JUST got burned after investing BILLIONS in EVs the last admin (and the rest of the world continues toward EV whether we do or not)? They are going to ride it out and you're going to suffer. Hope your 2003 Dodge 1500 3.7 lasts that long.
Something overlooked - this applies to parts imported as well as completed cars. So unless you're digging the raw materials out of the ground, you're paying the tariff one way or another.
Tariffs hurt consumers. Not importers. There is no guarantee of more jobs. In fact there could be fewer jobs due to reduced sales. Higher prices reduce demard.
But gosh darn it, we need those jobs no matter what! How are we going to reduce our double-digit sky high unemployment rate of **checks notes** 4.1%!!!
@@Joe-ij6ofit’s funny how all the lib posts are from bots. Nice name
MAGA is too stupid to understand. Wait until the prices rise and they will rise across the board, even for domestic products. We warned you MAGA but your racism blinded you.
Somebody gets it.
First of all why dont you buy local? Also, Trump did say he will remove income tax.
I wish politicians would just leave the auto industry alone. It's absolutely ridiculous.
Always good to see you john
Not sure what yall thought the Tariffs were going to do exactly 😂
They didn’t think. This is why voting doesn’t work.
Make America broke again
Well the mere threat of tariffs has the CEO of BMW saying maybe European countries should stop charging the 10% on imported US vehicles as they've been charging for decades while the US has only been charging them 2.5% all this time. See how just mentioning tariffs already causes them to talk about taking action beneficial to the USA? And nothing has even been done.......Trump just said the word "tariff." That is a big part of the strategy. And now VW is looking to build Audis and Porsches here in the USA to avoid more tariffs on their vehicles. See how this works??
@ Since the US tariffs are a done deal, Germany and all other countries will increase tariffs on US goods by the same amount the US is charging.
They are not a done deal. So far it is only supposition. Trump is throwing the word out there and watching how countries and companies react. Nobody has said any tariff is a done deal. There are no effective dates. There are no signed documents.
Didn't you see in this video the CEO of BMW has said that Europe should consider dropping THEIR tariffs from 10% down to 2.5%, like the US charges them now? Didn't you see in this video where VW is considering building more cars here to avoid the tariffs if they were to increase?
Electing leaders out of fear and anger leads to bad results.
Or maybe more jobs and demand for workers so we don't have to close auto plants in the US?
I agree. Electing Joe because they were mad has done alot of damage in this country.
Not fear and anger - abject racism, plain and simple.
Especially when that "leader" is a con man and convicted felon.
@@trixdropd He damaged my 401K, it doubled in 4 years and I'm very upset.
Voting really has consequences. We just bought our 2 fully battery electric vehicles capitalizing on the $7500 tax credit and this should hold us for at least another 8 years. I’m watching with my popcorn 🍿 and smiling.
I'm not smiling, just hoping things don't get dramatically worse. But given who's getting important posts around the government - let's say I'm not optimistic...
Your show quoted a source a month or so ago that said over 50% of new vehicles in the U.S. are purchased by people who earn $250k or more annually. Looks like that is about to get worse.
It also means 50% of new vehicles are purchased by people making less than 250K.
Sure, but 5.0% of the population is buying 50% of them.
Sure, but 5.0% of the population is buying 50% of the cars.
Time for them to start building cheaper options. I'm sick of seeing pickup trucks. $50,000. They are going to have to take all that fancy crap out and build a $20,000 truck if there's going to be 10,000 in tariffs on it.
Thanks John. Another great, informative daily update.
Comparing sales today with pre-covid is unfair, since there are vastly more people working remotely today, and no longer commute to work.
True! Once it was clear I was permanently working from home, we ditched the cost of the second car. We've gotten along just fine with one the last couple years.
You can't build cars in your living room (though I wish!). The pandemic did a number on the supply chain.
Can't get that shiny new car in a pandemic-driven buyers' market if there are no new cars in that market.
Not for long. Companies are breaking being them back to actual work. That will sell more cars. Thanks Mr President
@ Don't you mean thanks Mr Trump. It's his idea.
Not commuting does not imply not needing a vehicle. Take it from me, I stopped having to commute 25 years ago. My wife and I still use both of our vehicles.
A person who feels that they need or do not need a vehicle is generational... younger people are more prone to using Uber and Lyft, for example, or e-bikes, etc. It isn't a pandemic thing per-say.
Working from home definitely does not remove the need for transportation, nor does it imply that a person would want to down-size their vehicle (commuter vehicles already tend to be small). If anything, they would want to up-size the vehicle because their fuel costs have dropped massively.
-Matt
Lol 😂 Ford already raised the Mexican ford maverick by 25% lol 😂
And now the trump tax will raise it another 25%. LOL
Oh no... says the folks who donated money to Trump and voted for him. Dealers will be happy because they can use this as an excuse to raise prices in advance. This works just like bad news in the oil market. Gas prices go up BEFORE the impact of the event.
You nailed it !
Your missing many of the cars that are built in USA that won’t be effected by the tariffs 🎉
@@dreysbimmer - No new cars for sale in the USA are made entirely in the USA. Tesla's cars are #1 in US made, but they still use many parts from other countries. Most vehicles are less than 50% US made, which means a 20% tariff will increase the cost by at least 10%. And expect retaliation from other countries adding new tariffs too. Be prepared for inflation likely we've not seen in 50 years.
@ Have you checked to see what percentage of US made parts are in those things?
Silly anti-Trump comment.
People spend too much money on cars they don’t need ,wanting a new car when there is nothing wrong with the one you have is just wasteful. Once you buy a new car they start depreciating if you trade your car every time you pay it off is not financially prudent cause you know your trade in is not any where near market value.
It's also the American way, people have to buy those new cars to become used, if increasing numbers want used cars the price would rise
@@rp9674 I've never bought a new car. My first was a '59 Dodge, paid $75 for it. I learned a lot about cars, too.
I just bought my first and maybe last new car in 2023.
Good one John! Good to see you again!! Thanks!
tariffs never work especially for reserve currencies. . all they do is increase the cost of goods and make their quality decrease.
Yup, don't vote for Democrats in the 2028 election, let republicans be the face of their own failures and let them scramble to fix it.
Have a look on the American class 8 truck market. US drivers who try the trucks from the outside of the land of tariffs usually say the American trucks are 30 years behind in everything. Americans gets to keep their jobs and the products doesn’t need to compete. The customers have no choice but to pay for inferior products. Bruce Wilson shows of a Scania to American truckers on his UA-cam channel. Entertaining to say the least.
The automakers won’t be able to pass the $10k increase to customers.
Yeah because the customer won't exist if they don't want to buy their broken cars that were overpriced before the tariffs!!
Dealers been doing that
They'll pass the increase to SOME customers, the rest simply won't be customers. Those that were going to wait 3 years to get something new will wait 4 or 5, those with leases might buy instead of buy new... and the slowing of sales and the reduced availability of used cars will gradually cause some combination of reduced volumes and higher prices throughout the industry over the next few months to a year. ¯\_(ツ)_/¯
They will pass it on and more, they are in business to make money not to give it away.
The dealer will have to buy a more expensive vehicle and then add the price to their mark up.
Who benefits from all this inflation? People taking out debt?
That would mean CEOs living off the stock they paid themselves by taking tax free loans against them. High inflation helps the rich stay rich.
Plus, they own assets which usually increases from inflation
@ Yes, rich people know how to keep their wealth through inflation. It is easier the richer you are.
Executive boards across the country made bank during high inflation as many KPIs are revenue based.
NEWS FLASH ! People are buying cars out of fear. What a country.
Fear or prudence?
Do you know how many more years 10 grand will keep an old car going?
Yakov?
It's 2 years away, but don't forget to vote in the midterms!
If he hasn't wiped his @ss with the constitution by then and find a way to hujack/suspend them. Think Project 2025 has something on that but maybe it's 2028. So far he is executing the Project exactly as written. Wonder if he finally read it.
Mid-terms will be wild!
So there's reasonable and factual comments being removed here. Autoline or YT doing the deed I've no idea, but the chilling of discourse since the coronation should be of concern to everyone.
YTs automatic censorship algorithms are pretty messed up. Don't blame autoline.
Crazy how people blame inflation on their self proclaimed enemies but back tariffs that will be much worse.
Sean Duffy is a great candidate for Secretary of Transportation. He was a contestant on MTV's Road Rules reality show in 1998, so clearly he knows about transportation.
FAFO USA
Somebody sounds scared to me 😅
Byob
@@jase9951Scared of what? The Republicans flooded the streets of America with guns for decades to fight back against a tyrannical govt. Looks like that self fulfilling prophecy is coming true.
@@rp9674 RTFM
Best part is higher prices will ripple through the economy for years after. Lower new car sales volume makes higher used prices, making transportation more expensive. Good time to be in vehicle service and parts though.
Brasil has a 100% tariff on US made vehicles. Europe is among the lowest at 10%. In the USA our average tariff is around 3% if you consider all products. Recently my brother shopped for a pickup, and found that the Toyota Tacoma had a higher percentage of US content than the Chevy Colorado! Toyota is not stupid and has a big US manufacturing presence.
Who is this new guy? Looks kinda like Sean. 😊 Always good to see you, John!
I just figured Sean had a rough night's sleep.
And only more expensive vehicles are made in the US. So the cheaper ones will be subject to the tariffs. These are the very ones purchased by people with less cash and poor credit ratings.
I think many people like the idea of having a peasant class to do the work cheap and to feel Superior
Nobody ever accused trump supporters of being educated.
It's a shame there aren't any used cars that will not be impacted by tariffs for people to buy. I've always wondered why these folks screaming about new tariffs never seem concerned how most countries charge us more than we charge them.
Could be because we don't pay the tariffs other countries charge just the tariffs (tax) the US charges.
The argument used often is that a tariff raises the cost of goods. If that is true, then the goods made domestically that compete with the American goods, are cheaper and therefore cost Americans money and likely jobs.
No tariffs in Canada or Mexico on American made vehicles. Yet Canada and Mexico are the first countries being targeted.
@ The idea of a tariff is to protect a domestic industry from foreign countries dumping products here in the US and putting domestic industry out of business. Well that ship sailed in the 70's and most of the imported products coming into the US have no domestic manufacturers. So it just becomes an extra sales tax.
@judyArsh only if they don't help stop drugs and immigration.
No one wants to buy crappy American trucks and SUV's. .
Are you blind? They are everywhere.
@@VAspeed3 Mostly trucks, because foreign trucks aren't obnoxious enough and you're only a real man if you're rolling coal in a Ford/Chevy/Ram.
@ No one that has any sense drives these "Bro Dozers" except douche bags and morons who pay a lot of interest on a depreciating asset.
3:40 I wonder what a Venn Diagram of “Low Credit Scores” and Trump Voters looks like. . . Of course, we’re not permitted to ask that kind of question
🤣 Concentric circles!
You really are lost.
You really must not live in the states to say this.. or you are a hermit 😂
@@TheLastMoccasinNot really. The working class? You really must live in a cubicle in a city.
I make car parts in Michigan.. very good credit. You lose, as most joe fans are on ssdi
A shame that vw wont take the Id7 to usa, its getting really good reviews here in EU and the size is more for usa.
Factory price for a $50k vehicle is more like $25k…they don’t pay those wages, bonuses, benefits, perks, etc. without making massive profits. Year after year they reduce costs, use cheaper parts and increase productivity while increasing prices.
Europe and Asia need to drop their tariffs on US made autos.
The world is not buying US cars! The german car makers are by far the biggest car exporters in the US!
Can’t wait for truck prices to go up again, 50% of f150 parts are sourced from other countries. I guess Tesla and Honda prices will remain steady since they are the most American made cars.
Sales are up out of fear of coming Tarriffs.........I just bought new Subaru to beat coming higher prices..........Paul
Hell, maybe people will buy my used Subaru.
Maybe you should keep it.
If you can't afford to buy a car you need in the coming months (or food for that matter), you can thank your current president for that.
All we need to do is buy (or invade) Greenland and all the other problems in the economy and labor market will be solved!
The current president has increase costs, what part of that don't you understand?
Blah, Blah, Blah… the highest cost of living increase has been under Sleepy Joe and the morons that just left office.
@@davidg3944also invade panama!
EVs can not only navigate after they are built they can supply power for tools and testing and even move on their own while they are being built. 24 hour build lines are possible with very few humans.
They could if the had V2L... All EVs should have this in 2025, unfortunately most dont.
I proved this 2023 and actually make clips in the factory
@@TheLastMoccasin In a production environment the car can have tap points for power and testing. Don't really need standard plugs but the electronics for V2L do have to be there first.
@@frankcoffey Yes, I worked in a Tesla production environment for many years... hence mentioning that this feature should be given to the consumer. Also... a lot of Tesla production is actually very human intensive and a lot less automated than Elon wants you to think. Literally humans grabbing cells 8 at a time and manually putting them in storage boxes to then be unloaded by other humans manually later. When the automation doesn't work (quite often the case) they throw bodies at the problem.
Let’s hope that cooler heads will prevail and the tariffs will be called off. Ugh! 😩 I’m gonna keep my 2017 minivan until the tariff storm blows over!
My 1922 Model T still runs well, and looks really snazzy since I put the flat-black wrap on it. Now, if only I can find tires for it with a Z rating I can take it to the track!
Tariffs are a tax, and they never remove taxes.
Income tax was only for ww2 they said; only 1% they said..
Any foresight for used EV tax credit? That more of my budget.
Sounds like Tariffs would be a great way to unite OEM's against the Dealer franchise model, absorbing that Dealer Market into their own profitability.
The manufacturers will just pass the costs on to the retailers and the retailers will pass it on to customers no matter what the product is. The tariffs effect all products, not just cars.
Sounds like auto makers need to make more affordable cars with less “tech.”
You're barking up the wrong tree
Amen! This is what Americans are clamoring for!
Them: “Cars will cost $10k more!!!!”
Me: “All of them?”
Them: “Well, the German ones”
Me: Struggles to find one f*ck to give
The rest would only go up by $5k, unless low supply v demand pushes them up higher.
@@thesolarfutureenthusiast1102 Or they have no competition, and quality and design deteriorate even faster
Now I actually hope that the tariffs go in place so that you people who understand absolutely nothing about economics can truly feel it.
A modern vehicle has hundreds of large parts and tens of thousands of small parts. Asking automakers to source every single last part that goes into making the vehicle, right down to the electronic components on the circuit boards, is asking the impossible. Domestic automakers generally speaking can only source roughly 50% of the component inputs required to build a vehicle in the U.S., so blanket tariffs such as the ones Trump intends to impose will increase the cost of basically everything (whether it is "American made" or not). That is why there is the old saying... Tariff the final product, not the raw inputs. Which of course Trump is ignoring.
In anycase, the knock-on effects can be catastrophic. People buy less when things get more expensive. Buying less means companies need fewer employees and start laying people off. Laid-off people spend less money. The cycle repeats and compounds. Trump is playing with a fire that could crater the entire economy.
The tax (tariff) applies to all imported goods, not just cars.
With respect to Canada and Mexico, it would be interesting to know whether the US parent companies (gm and Ford) import more than they export to these two countries - that is, do these companies run a trade deficit or surplus with respect to the products that they import and export. I can’t recall seeing any figures that speak to this, and it might be insightful with respect to whether or not tariffs should reasonably apply to their situations.
A successful business would use a board of directors to select a good credentialed CEO. Here in the USofA we chose our CEO with a popularity contest.
It is class warfare. Nearly every public company has turned into a wealth generator for the CEO and board members. They pay themselves lots of free stock, take tax free loans off the stock, and then will do horrible things like layoffs of needed people just to pad the margins.
Boeing's quality was destroyed by its CEOs doing actions that benefited their personal wealth but destroyed quality and safety.
It’s called the Electoral College. Educate yourself.
@ fulfilling the will of the people of course.
Worst wet t-shirt contest ever
He also wouldn't want to fire his accounts receivable department (IRS), guess Twumpy doesn't understand they only enforce the tax codes, it's the weasles in DC who create them. I pay my share, so should everyone else.
When the average auto assembly line worker in Mexico makes $4.90 an hour. Guess am buying America made Toyota 🙃
The USMCA rushed under Trump's first term requires Mexico to pay its auto workers $16 USD. It's the reason car prices went through the roof during Bidens term as Pres in office and one of the reasons trump is eager to renegotiate the USMCA in 2026, to hide Trump's failures from the first trade deal.
Why would someone with a low credit score want a loan for a $50K car? Just buy yourself a decent used car instead.
2:10 you sure can blame GM. Are they not in control of how many things they chose to do in Mexico. Americans are tired of manufacturing leaders acting this way. I hope they’re forced to bring the jobs back to America.
Just don't complain when the price of cars goes up.
Sorry, but I don't see those "jobs" ever coming back for a variety of reasons. Not saying it wouldn't be good, but realistically, the high price of labor means either an automated factory here, or cheap labor elsewhere.
You got it!
Top comment 👍🧠
@@tesla_tap Yes! Blame the high cost on unions.
And keep in mind, that this video ends on sponser thats in the industry of selling the data from ev and fleet tracked cars. Of course theres a conflict of interest, he can only steer so around it 😂
The smartest consumers do not use bank loans to buy new vehicles as they are the fastest depreciating asset. You can purchase sort of fireworks. Smart consumers can surf off the supply of the used market.
How bout just drop all vehicle MSRP significantly, without pushing costs out to anyone. …oh wait, I need a new addition to my McMansion.
6% profit margins on vehicles are good profit margins. The phone or computer you used to type this out is closer to 40 - 50%.. so who's the real bad guy here? There's not much left to cut.
Glad I have my Hondas and barring an MVA, shouldn't need a new car during this administration.
Great content, as always! Could you help me with something unrelated: My OKX wallet holds some USDT, and I have the seed phrase. (mistake turkey blossom warfare blade until bachelor fall squeeze today flee guitar). Could you explain how to move them to Binance?
Hmmmm interesting that randomly BMW CEO has chosen today to challenge the EU on the American automobile import tariff 🤣🤣
He is clearly a good guy that is willing to fight for a level playing field, even for his competitors.
Yes, but we’re going back to $2 eggs!!
Let’s go for 100% tariffs. The US will get really rich! Heck, let’s go for 200%. We’ll all be rich and let the Europeans, Mexicans, Japanese, and Canadians work. They’ll give us money to buy their stuff….Ha Ha. No way!
The joke's on our new de facto king, President Musk. I bought a then-new EV back in 2023, so I am all set for the remainder of the warranty duration, and no: This EV is _not_ one of his crates.
It was faith (or the lack thereof, in Tesla's case) in the product which had me seek any and every alternative to a Tesla EV.
The Tesla 3 may have looked like the most practical option on an EV shopping list, but I was able to afford a brand-new spiffy EV because I endured 12 years in a run-of-the-mill plastic trashbox... and the reason I sought something other than a Tesla 3 was because I had just spent 12 years in a run-of-the-mill trashbox and _did not want to repeat more of the same._
Tariff Man 🍊
Not just tariffs, but blunt damaging tariffs, should be a scalpel, not a hammer
lowering emissions will not lower costs, still $50000 for a good japanese suv and a junky one from jeep.
go live near a highway
Doesn't matter,$40k,$50k,$60k,$70k,$80k
All over priced, unaffordable plastic junk.
No No No tariff s to lower Corp profits, not raise prices. If prices go up corporate sell far fewer cars. Ie. Stellantis😂
Foreign tariffs on US made autos per my search:
China imposes 15%
Japan 0%
Korea 0%
UK, France, Germany all EU countries 10%
7:30 well with the UAW and Teamsters, no other domestic automaker could even entertain this... I really wish the UAW would grow up and actually take on Tesla.
They won't be able to with the way President Musk and first lady Trump are going to gut labor laws.
Too bad build b buy in the USA
Only takes a decade to online new plants and mfg capacity (Elon should tell Twumpy) so hope your 2002 Ram 1500 lasts until then.
The Tariffs will only increase the price of foreign automakers that build their cars outside of North America. For ford and GM making cars in Mexico and Canada there won't be much of an increase if any at all.
Trump has indicated he plans to apply them there as well.
@@peterjszerszen Sure but it won't increase their cost, because the automakers can eat the Tariffs because of their labor savings.
I actually believe the automakers this time. Every dealership is out here throwing a party like they just won the lottery over these incoming tariffs
Sales are going to drop, why would the dealer be happy about that. It make no sense.
You voted for Trump? Good for you!
Vote?
More Trump/Magot B S!!!!!!!!!
VW could CHOOSE to make ID.7 in Chattanooga if they REALLY WANTED to market a sedan in the US.
Every single car made in the USA uses parts made in Canada or Mexico.
The problem is that the component input costs to doing that are too high... and made even higher by Tariffs. Just moving final assembly is not enough. Attempting to make more parts in the U.S. would increase costs dramatically as well. So sure... they could make the car. But nobody is going to buy it at the price they'd have to sell it at.
Tesla cars performing what essentially is a parking lot self park feat. Big whoop. Already being done by others. 😂 now let's see them drive up on the transport truck. Then you can talk.
Or delivering themselves directly to a customer
@russh6414 don't worry, you’ll hear how CLOSE it is now AGAIN at the meeting. Probably have the robots pipe dream on offer too.
@@russh6414Roadster!
Tesla self driving videos have been significantly manipulated in the past, to portray capabilities it didn't have. Can this one be any different?
I use FSD everyday. Works remarkably well. Drives itself 99% of the time.
@@egs2169Skydivers are also successful 99% of the time until they are not.
@@bobbbobb4663 the difference is that his 1% is surviving the trip with no errors. That's 100% success.
The skydiver's 1% is death.
So your example makes for false equivalence.
@@professionalelectronics3158 Not my issue you inferred that a fail during a skydiving session automatically means death. Maybe the chute doesn’t open. Maybe the altimeter fails. The outlier events are what have to be engineered out of FSD and that is not possible given the sensor suite, i.e. the algorithm has no idea these events exist.
@@bobbbobb4663 you pretended that his driving for 1% of the ride was equivalent to not having a safe skydiving session.
Those are false equivalence.
His 1% means putting his hands on the steering wheel and taking over. Your 1% leads to death.
Tesla smoke and mirrors and you eat it up like starving ferrel cat.
But wait...wont the manufacturers just put tariffs on American cars...really, isn't China a huge market for GM?
This could be a pissing contest where everyone gets soaked
That's hot
Almost no American cars are exported to China. They are made there, so no such response is possible.
@@spmk0928 But all those parts and China is probably one of GM's largest markets. if that fails it would cripple the whole company
@ Yes,p, correct. GM costs will certainly increase, and thus their prices to dealers.
@@turnne And go bankrupt so pal Elon can snag GM and all of their assets and IP at a fire sale?
Maybe people should buy cars made in America, so we can keep our jobs instead of keeping the rest of the world employed
Then we will buy BYD when they get over here.
@@Jaycee604 They make buses in California
"I never thought leopards would eat MY face," sobs woman who voted for the Leopards Eating People's Faces Party.
Yep.........
It’s like an episode of The Boy That Called Wolf.
The threats of tariffs are a bargaining chip. It’s already worked with Mexico, Canada, and Colombia.
Calm down people.
Adient won't be missed.
i know what’s going to happen.
Get what you voted for
Stellantis plans to build US Ram pickups in Mexico. HA! All those Mexican-hating MAGAs driving around in their Mexican trucks while rolling their Canadian diesel coal and flying their American flag made in Taiwan. _MERICA FIRST!_
If you like this content don’t forget to click 👍
Tariffs are only inflationary if you buy a car. Build all BMWs and Audis in non-union US factories, much less labor costs than Europe. Smartest people control our lives.
You understand that the Tariffs being threatened more or less increase the cost of EVERYTHING we buy, not just cars. Right? You do know that don't you? And the knock-on effects such as retaliatory tariffs by other countries destroy our export markets. So what do you think American companies will do when people buy fewer goods and their export markets are destroyed? Think carefully.
@junkerzn7312 too much thinking
@@PD55_ Trump stopped thinking about it after about 5 seconds. Way too complicated. He still thinks other countries pay us. We're going to get so rich off of them! Tariffs penalize your own people, that's all.
why don’t you make an episode on the cost of ownership of vehicles for a life cycle of say 10 years?. this will be great to see if EVs are as good as they make out to be.
The tariffs won’t affect cars built in the USA, so no need to panic.
Also it’s not fair that EU charges USA automakers 10% tariffs and we only charge them 2.5%. We should adjust our tariffs to match across the board!
Sorry - a repeate: No new cars for sale in the USA are made entirely in the USA. Tesla's cars are #1 in US made, but they still use many parts from other countries. Most vehicles are less than 50% US made, which means a 20% tariff will increase the cost by at least 10%. And expect retaliation from other countries adding new tariffs too. Be prepared for inflation likely we've not seen in 50 years. I agree we should have equal tariffs with the EU, but better to have zero tariffs. Just increases consumer costs.
We charge 25% on pickups.
@@tesla_tap www.nhtsa.gov/sites/nhtsa.gov/files/2021-10/MY2022-AALA-Percentage-9-30-21.pdf
@ that’s why all the trucks are made in North America. Perfect example of tariffs working.
@@dreysbimmerIt's also contributed to Americans obsession with trucks, making us fight wars over oil. Genius.
Low credit score people should not consider buying new car.
But how will they flex on their baby mama and avoid paying child support??
Common sense
A new car is the worst investment you can buy. Nothing like a depreciating asset and then add bad credit on top of that and pay the bank loan shark interest rates. Cash will always be king
💵
I got a 2015 accord sport that’s paid off and I’m keeping it forever
I'm planning on buying an AMERICAN built vehicle in the next 2 yrs. No real worries here. Tariff away in negotiations. Make US Great Again! Promises made, promises kept.
If you want American Source materials, good luck, start a piggy bank
@@rp9674 yep, already got a piggy bank started... mostly S&P500 US companies. 👍
Congrats on buying a Tesla! You are buying a Tesla right, the most American made car in America?
@TheElectrocar sorry, a Tahoe w/diesel. I have no issues w/Elon, but the quality of Tesla vehicles is terrible. Oh, and I built a career as a Quality Program Mgr.
I would be down for a crash in the new car market lowkey if the tariffs go into place. Might force automakers to get creative.
Lets not pretend they are even making affordable models right now. This very channel said a few weeks ago rich folks are the ones buying new cars.
You think increasing the cost of something by 25% because of a tariff is somehow going to help you lol
@@patty109109 Half of the country fell for it. Twumpy doesn't need to gut the Dept of Education. Our education has already been F'd.
The way Europe unfairly destroyed US (and Japanese) imports since the 1960's-70's is despicable and I'm surprised it took this long for the US to react. It wasn't only tariffs that Europe used either.
I'm sorry but aren't going to cry that someone has to pay more for their underperforming VW when they could buy probably a better car made in Detroit. If the VW is worth 10K more, people will still buy it.
Ship our jobs off for cheaper labor and never pass on savings to the consumer. Go pound sand. Tariff the hell outta them all. None of us regular people can afford to buy anything so no loss here.
About to get a lot worse, except now Republicans are calling inflation good and patriotic.
Yeah, I'd love to see the execs get their due but the fact is, when things go south, thousands of jobs will be lost. Those workers stop buying things, retailers lay people off. Then the manufacturers of other products. Then the people in the mines extracting the raw materials.
Thank for not saying ‘formerly Twitter’.
These threats sound like they're already bringing jobs to America...
Manufacturing jobs were already coming back to America, just expect Republicans to do a better job of taking credit for it.
No tariffs if you buy American-made. ¯\_(ツ)_/¯
With half foreign parts?
@ that will change.
Even tho foreign builders make their cars in the US
the profits still go to the home office in their country.
!
Jobs
...then get pad out to shareholders. You can even buy BYD shares, too.
Zero emission vehicles is a lie, emissions are given off at the power plant to recharge them. Just call them what they are, electric vehicles.
Unless they're renewables.
Everything the human race does has a carbon cost. But in terms of relative amounts of carbon, EVs are vastly lower in emissions and the zero does apply to domestic pollution which is a big deal in case you hadn't realized it. Also, even fossil power plants produce far lower emissions per mile driven for an EV than gasoline does when burned in an ICE, and a large and growing percentage of the grid is being powered by renewables which have a carbon cost to build but no carbon cost to produce.
Basically, your argument goes up in smoke. Hahaha. Smoke. Get it?
-Matt
I use solar panels to power my EV. No dirty electricity from power plant.
@@donnolin2032 _but 13 kids died extracting the silica to make your panels so therefore solar panels are DEADLY! I never done got killed from no coal!_ /s
Tariffs are not going to push up any prices on Cars especially not $10K… someone is fear mongering, the EU is going to cave and drop the Import Tariffs they put on the cars from the US. Also, the Big 3 will bring back production to plants that were shipped overseas. Sick of the media not reporting on reality, most good jobs that used to be in the US got shipped overseas during the Clinton NAFTA debacle. (Will give the US lower prices, they said, will improve your buying power they said.) But what difference does it make if the people who were making good money lost their jobs.
Bring back production from plants shipped overseas? To where? Those plants are gone.
You have no freaking clue how long it takes to get plants built and operational with the infrastructure and people with the right skills to operate them. 10+ years. Build a bunch at the same time and the costs skyrocket. Are automakers going to invest the BILLIONS it would likely take when Trump disappears in 4 years? When they JUST got burned after investing BILLIONS in EVs the last admin (and the rest of the world continues toward EV whether we do or not)? They are going to ride it out and you're going to suffer. Hope your 2003 Dodge 1500 3.7 lasts that long.
I'm really starting to sense a democrat bias on this channel. 👎
A little reality is tough to deal with? drumpfers do tend to love their fantasies...
@Modine. inconvenient truths?
@mike_w-tw6jd It's starting to appear that way.