SLL still fails to see the 6D chess behind Trump’s tariffs. From Michael Snyder at endoftheamericandream.com:
When prices go up, our standard of living goes down. That is the way that it works. I have been writing quite a few articles about the shortages that the global trade war is going to cause in the months ahead. Without a doubt, they will be extremely painful. But there will also be very large price hikes in many cases, and some of those price hikes are already starting to hit. For example, Ford has just announced that the prices of some of their vehicles will be raised by as much as two thousand dollars…
Ford Motor Co. is increasing prices on its Mexico-built vehicles by as much as $2,000, becoming one of the first automakers to announce a price hike because of tariffs.
Changes on dealer invoices became effective May 2 on the Maverick small pickup, Bronco Sport SUV and Mustang Mach-E all-electric crossover, according to the memo obtained by The Detroit News. That means affected vehicle will arrive on dealership lots in late June, the company confirmed. The Dearborn automaker attributed the hike to usual midyear pricing action as well as tariffs.
For most of us, the fact that Ford is raising new vehicle prices dramatically isn’t going to really affect us much, because we can’t afford to purchase a new vehicle anyway.
But for those that are in the market for a new vehicle, this is going to make a significant difference.
Two thousand dollars is a lot of money. Once upon a time, I actually purchased an entire vehicle for about two thousand dollars.
Of course it isn’t just Ford that is facing higher costs due to the trade war. General Motors is estimating that the tariffs will cost the company between four and five billion dollars in 2025…
Ford earlier this week said Trump’s trade war would add about $2.5 billion in costs for 2025, but it expects to reduce that exposure by around $1 billion. Rival General Motors (GM.N), said last week that tariffs were projected to cost it between $4 billion and $5 billion following the imposition of hefty levies on foreign imports of automobiles, but it expected to offset that by at least 30%.
A Ford spokesperson said the price hikes will affect vehicles built after May 2, which would arrive at dealer lots in late June.
Ultimately, almost all new vehicles will become substantially more expensive, because even vehicles that are “made in America” contain parts that are manufactured overseas.
