https://www.cnn.com/2024/11/06/economy/inflation-interest-rates-donald-trump-presidency/index.html
How will big tariffs on cars coming up from GM's factories in Mexico affect us?
7 replies (most recent on top)
Fact: Trump's tariffs from his first term are still in place. Biden never removed them.
If they were so ineffective, why didn't Biden remove them?
The idea imo is to force companies to manufacture in the US if they do business here. Rather he actually does these things, I guess we’ll see. I think the thought is prices will go up but so should wages and GDP because of the increased work and demand for labor.
Yes, really.
Read:
In 2023, GM announced its official return to the European auto market, ending a five-year absence. This move is expected to bring new vehicles and brands to the region.
Before you dismiss or ridicule, know WTH you are talking about.
EXPORT to Europe? Really? A smattering of Sting-Rays or Caddys??? Why not buy Opel back from Puegot???
Fain is a SCAB
Option 1: GM will need to open & update shuttered plants and/or build new ones. These plants may also only end up focusing on cars for European export.
Option 2: GM will need to pass on the tariff cost to customers and see their sales tank.
Option 3: GM will shut down car lines that are in Mexico, forgo sales and sell the plant/property & equipment.
Option 1 is the only one that makes sense. All options involve vastly greater expenses, which of course lower profits. If anyone was foolish enough to own GM stock, now would be a great exit point.
Lower profit margins mean lower dividends, less stock buybacks and lower stock prices. Aside from that, expect deep cuts all around as the 2025 Q1 results are being complied.
Won't be good