Tariffs and their effect on G63
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Tariffs and their effect on G63
With high probability of tariffs to increase mostly on Chinese (up to 50%) and on European imports (10%), I was wondering, if there G63 and Porsche models will be effected?
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Tariffs on green technology made in China have already been quadrupled under the current administration. 60% would actually be a decrease.
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And there are barely any US cars on the roads in Europe. Ford Europe doesn't count, those cars are made in Europe for Europe.
Not sure if that's meant to be sarcastic, but given how most voters still clearly have no clue how tariffs work, no Germany won't pay them. MB USA will pay the tariffs when they import the cars and will most likely pass them through to the customer in the form of an equivalent increase in MSRP, or cut salaries, bonuses etc. for American employees. It's already starting to happen as companies prepare for it by freeing up cash to buy inventory ahead of next year and store it. Tariffs are a tax on the consumers and will cause inflation.
As to OP's question. Light trucks already have a 25% tariff on them. Google "Chicken Tax".
Not sure if that's meant to be sarcastic, but given how most voters still clearly have no clue how tariffs work, no Germany won't pay them. MB USA will pay the tariffs when they import the cars and will most likely pass them through to the customer in the form of an equivalent increase in MSRP, or cut salaries, bonuses etc. for American employees. It's already starting to happen as companies prepare for it by freeing up cash to buy inventory ahead of next year and store it. Tariffs are a tax on the consumers and will cause inflation.
As to OP's question. Light trucks already have a 25% tariff on them. Google "Chicken Tax".
Last edited by superswiss; Nov 10, 2024 at 06:41 PM.
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And there are barely any US cars on the roads in Europe. Ford Europe doesn't count, those cars are made in Europe for Europe.
Not sure if that's meant to be sarcastic, but given how most voters still clearly have no clue how tariffs work, no Germany won't pay them. MB USA will pay the tariffs when they import the cars and will most likely pass them through to the customer in the form of an equivalent increase in MSRP, or cut salaries, bonuses etc. for American employees. It's already starting to happen as companies prepare for it by freeing up cash to buy inventory ahead of next year and store it. Tariffs are a tax on the consumers and will cause inflation.
As to OP's question. Light trucks already have a 25% tariff on them. Google "Chicken Tax".
Not sure if that's meant to be sarcastic, but given how most voters still clearly have no clue how tariffs work, no Germany won't pay them. MB USA will pay the tariffs when they import the cars and will most likely pass them through to the customer in the form of an equivalent increase in MSRP, or cut salaries, bonuses etc. for American employees. It's already starting to happen as companies prepare for it by freeing up cash to buy inventory ahead of next year and store it. Tariffs are a tax on the consumers and will cause inflation.
As to OP's question. Light trucks already have a 25% tariff on them. Google "Chicken Tax".
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Same as in US, most of us here "don't like" import cars.
We have tariffs for all non-EU cars, I don't know from when, but maybe those tariffs are from at least 30 years ago.
10% tariffs just make the minority who wants to drive import cars "special".
I don't know if is true or not, but on EU streets any US car is always "ugly". Of course there are many US models good, or cheep, or big, or red....but always is "ugly" for us
Here is not legal to use brake lights for signaling, so... imagine how we horn....
So 10% is quite OK for us, as we think that our cars and culture is protected,....
German cars for anyone who wants to drive, Italian cars for the ones who wants to get married and English brands for Sunday only drives. That's 99% of EU thinking.
Tesla is named "Washing machine on wheels" and we use Tesla only for YouTube, as on our highways Tesla is always on the first lane behind the trucks ( at 90 km/h), with all my respect.... please accept this opinion.
Renault sell million times more then Tesla, all around the world, cheaper full electric car and is considered a very good car
We have tariffs for all non-EU cars, I don't know from when, but maybe those tariffs are from at least 30 years ago.
10% tariffs just make the minority who wants to drive import cars "special".
I don't know if is true or not, but on EU streets any US car is always "ugly". Of course there are many US models good, or cheep, or big, or red....but always is "ugly" for us
Here is not legal to use brake lights for signaling, so... imagine how we horn....
So 10% is quite OK for us, as we think that our cars and culture is protected,....
German cars for anyone who wants to drive, Italian cars for the ones who wants to get married and English brands for Sunday only drives. That's 99% of EU thinking.
Tesla is named "Washing machine on wheels" and we use Tesla only for YouTube, as on our highways Tesla is always on the first lane behind the trucks ( at 90 km/h), with all my respect.... please accept this opinion.
Renault sell million times more then Tesla, all around the world, cheaper full electric car and is considered a very good car
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Tariffs are a bit more complex than most people understand. The desired effect depends on the desired intention. For example, back in the late 70’s early 80’s, there were tariffs on motorcycles in excess of 750cc. The intention was protectionist for Harley Davidson, who was struggling at the time. The effect was for Honda, and other major motorcycle manufacturers was to produce motorcycles with 700cc engines. The move saved HD, and didn’t hurt Honda very much. So, depending on the intent of the tariff, and the trade balance between the trade partners. Tariffs are not necessarily inflationary, and can be shaped to have a desired effect from closing down the competition in a region, to having nearly no effect at all, and everything in between.
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Yes, that is correct if they are shaped in that way. That's not what Trump is suggesting, though. He's talking about blanket tariffs across the board. We'll see what ultimately happens, but as I've said in another thread, I can't wait to see the faces of the average American Walmart shopper when they find out who will pay the tariffs on Chinese imports.
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Same as in US, most of us here "don't like" import cars.
We have tariffs for all non-EU cars, I don't know from when, but maybe those tariffs are from at least 30 years ago.
10% tariffs just make the minority who wants to drive import cars "special".
I don't know if is true or not, but on EU streets any US car is always "ugly". Of course there are many US models good, or cheep, or big, or red....but always is "ugly" for us
Here is not legal to use brake lights for signaling, so... imagine how we horn....
So 10% is quite OK for us, as we think that our cars and culture is protected,....
German cars for anyone who wants to drive, Italian cars for the ones who wants to get married and English brands for Sunday only drives. That's 99% of EU thinking.
Tesla is named "Washing machine on wheels" and we use Tesla only for YouTube, as on our highways Tesla is always on the first lane behind the trucks ( at 90 km/h), with all my respect.... please accept this opinion.
Renault sell million times more then Tesla, all around the world, cheaper full electric car and is considered a very good car
We have tariffs for all non-EU cars, I don't know from when, but maybe those tariffs are from at least 30 years ago.
10% tariffs just make the minority who wants to drive import cars "special".
I don't know if is true or not, but on EU streets any US car is always "ugly". Of course there are many US models good, or cheep, or big, or red....but always is "ugly" for us
Here is not legal to use brake lights for signaling, so... imagine how we horn....
So 10% is quite OK for us, as we think that our cars and culture is protected,....
German cars for anyone who wants to drive, Italian cars for the ones who wants to get married and English brands for Sunday only drives. That's 99% of EU thinking.
Tesla is named "Washing machine on wheels" and we use Tesla only for YouTube, as on our highways Tesla is always on the first lane behind the trucks ( at 90 km/h), with all my respect.... please accept this opinion.
Renault sell million times more then Tesla, all around the world, cheaper full electric car and is considered a very good car
Last edited by superswiss; Nov 10, 2024 at 07:30 PM.
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Yes, those are baked in today's pricing. Nobody notices them anymore. We are talking about new tariffs that will be felt. Don't really have the energy to debate economics, but you may wanna talk to an economist. Fact is most voters don't actually realize what they voted for until prices start going up. Similar to the UK Brexit voters who voted against their own interests. It's gonna be entertaining to watch.
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Europe doesn't eschew import cars in general. Lots of Japanese cars everywhere. Hyundai is also very popular and the Chinese EVs are the latest cars that are taking Europe by storm. Europe specifically avoids US cars. Trump has complained about it during his first term. Lots of US cars are not even sold in Europe as the homologation isn't worth it. Good example are many of the muscle cars. At times they were sold. My parents once had a Ford Mustang. We were the only ones with an American car as far as you could see. Now if I remember correctly the Ford Mustang isn't being imported anymore. Similar for cars like the Dodge Challenger etc. The son of a friend in Switzerland of mine is into US cars and would like to buy a Charger, but they are not being sold. The USA loves Euro luxury cars and lower down Japanese imports are very popular, so are the Koreans.
As we have tariffs from many years, Toyota, Hyundai, KIA, etc just build factories here and pay taxes here and we build highways, hospitals....etc ...
Of course without tariffs should be better, but with tariffs -;at least for country that can make cars - it will be quite OK.
And yes, Chinese cars is more than a storm, it becomes preferate, huge success here
Last edited by trigital; Nov 10, 2024 at 07:36 PM.
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Also, just to point out things that European folks may not realize, but 60% of Americans live paycheck to paycheck w/o any kind of social safety net. Federal minimum wage is $7.25/hour. The United States also has the highest rate of medical bankruptcies. If you get sick in the USA and don't have good health insurance through your job you are screwed. 66.5% of bankruptcies in the USA are caused by medical expenses. The next closest European country is the UK with 8.2%.
We are in quite the bubble here with luxury cars. It won't affect most of us very much and we'll likely make it up elsewhere. But those 60% who can barely afford to shop at big box stores like Walmart will have a rude awakening.
We are in quite the bubble here with luxury cars. It won't affect most of us very much and we'll likely make it up elsewhere. But those 60% who can barely afford to shop at big box stores like Walmart will have a rude awakening.
Last edited by superswiss; Nov 10, 2024 at 07:50 PM.
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Also, just to point out things that European folks may not realize, but 60% of Americans live paycheck to paycheck w/o any kind of social safety net. Federal minimum wage is $7.25/hour. The United States also has the highest rate of medical bankruptcies. If you get sick in the USA and don't have good health insurance through your job you are screwed. 66.5% of bankruptcies in the USA are caused by medical expenses. The next closest European country is the UK with 8.2%.
We are in quite the bubble here with luxury cars. It won't affect most of us very much and we'll likely make it up elsewhere. But those 60% who can barely afford to shop at big box stores like Walmart will have a rude awakening.
We are in quite the bubble here with luxury cars. It won't affect most of us very much and we'll likely make it up elsewhere. But those 60% who can barely afford to shop at big box stores like Walmart will have a rude awakening.
The tariffs will not affect the 60%. Like us, the US has enough domestic products.
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That's actually quite a misconception, because countries are generally compared based on GDP in US dollars, instead of buying power within the continent in the local currency.
