Bladecutter

So, not trying to be political at all, but just curious as to what everyone thinks will happen to Mazda if a tariff gets imposed on any vehicle imported into the US market?

Will Mazda stop selling vehicles in the US market until the tariff gets removed in the future?
Will Mazda try to set some form of world record for building a plant in a southern US state, or up in Canada?
Or will they just expect US customers to eat the cost of the tariff while almost all of its competition has their vehicles already produced in the US?

What's your opinion on what Mazda should do, or what you expect them to do?

BC.

BigCajun

iTrader: (1)

I have no idea what's going on.
There's a lot of tariff and punitive tax talk all of a sudden, and I don't know if any of it is even enforceable without backlash against U.S. companies.
I'm a labor union member and I'm all for jobs staying here, but Ford suddenly deciding to halt construction and renege on a plant that they had already laid the foundations and infrastructure on smells a little fishy to me.
Not to mention Ford will likely have to repay Mexico for the land and make good on all of the parts they've already ordered from vendors to supply it.
This seems like more a than business decision.

BigCajun

iTrader: (1)

You made a good point in the previous post about the trickle up effect with increased prices.
Hopefully the economic impact of the jobs saved will offset any potential inflationary effects.

Loki

iTrader: (1)

Mazda is reasonably well diversified, they could not fight too hard and bet on a trade war between Europe and US to win market share in Europe. It won't be pretty, but neither is selling cars in a losing market. They might still offer the Miata in the US since it has no domestic competition. Right now the US has a 5% import duty, which brings in healthy amounts of government funding. Jack it to 35% and you might find the lower volume produces lower total returns. So there's that.

And don't count on Canada, we're technically not the US, so NAFTA notwithstanding, we get hit too. GM, Chrysler and Ford will have to figure out what they want to do with their Canadian manufacturing facilities, which produce cars for the US. And if NAFTA stands, so do Mexican facilities. So. We're all in for a ride. Maybe Lada will get an exception

archwisp

iTrader: (1)

Hopefully, increased prices in the us would mean higher employee pay. But it will probably just become greater profits for stakeholders.

Loki

iTrader: (1)

... and decreased wealth for everyone not employed by the auto industry.

fmzambon

So, in the end:
- imports will get more expensive;
- domestic cars will become more expensive as a result of the above;
- almost everyone keeps earning the same.

Did I miss something?

Razz1

There won't be an added import tax for Japan.

If there is it will be very small.

The problem is unfair trade.
Japan has good polices and follows pollution standards well.

It's China who is the most favoored nation as a trading partner.
That will be removed.

They also maniuplilate currency etc...

So there may be an increase on tarriffs for China and similar countries.

First thing to do is give incentives to American corps. to build here.
Then reduce the tax penatly for bringing earne dincome from overseas here.

Those two things will helps us allot.

The last thing to implement would be an increase in tarriffs, which is way down the line.

911SC

Razz1, Trump already threatened BMW with a 35% tax on cars imported into the USA, why would Mazda and Japan be any different?

Razz1

Japan has fair trade.

here's an example here.

Japan reportedly setting up package for Trump to create 700,000 US jobs | Fox News

delhi

Stock up on high end desirable import cars. Then flip them after.