US Slaps Canada/Mexico With Metal Tariffs

[lucafen4]

So our headoffice (we weld I-Beams and C-Channels and what not) just told us they're scrambling to adjust all quotes to add the 25% cost we're getting hit on and transfering it right to the customer. As I'm not totally ok with that as our head guys make millions easily, it's what everyone will do. Pass the cost onto the customer.

Car prices are going to be insane. Look up the autoplants in southern ontario alone. We build stuff for their plants, think they won't add that cost to your car? Yeah, it'll be expensive to buy a new car soon if this holds. Which raises the demand for used cars, which raises the price you can sell it for.

Trickle down is going to kill people. Hamilton housing market could very well crash too, as people can't afford to be here.

I will be looking for the most fibreglass/plastic built car on the market

[2014olympicgold]

I will be looking for the most fibreglass/plastic built car on the market

European cars might be cheaper...or you know, they'll raise their cost so they still look luxury over a Ford.

[lucafen4]

European cars might be cheaper...or you know, they'll raise their cost so they still look luxury over a Ford.

Scooter/electric Bike might be the way to go.

[2014olympicgold]

Scooter/electric Bike might be the way to go.

And at the same time it can all be moot by like Tuesday.

I wonder what the price difference between getting steel from overseas is. Like imagine if the world just went, "Ok, we'll go elsewhere" because of this. US would likely take a beating on this idea,.

[PenguinHunter]

Kudos to the forum police for not complaining about this thread.
The US foreign policy is certainly... well... interesting these days.

I never understand why people complain about police....

If you are doing nothing wrong the Police are not going to do anything. They are there to protect you from people who are doing wrong.

And I was trying to figure out how police became part of this thread... and i made this connection:

Metal tariff on Canadian Steel.
Canadian Steel is manufactured in Hamilton.
Hamilton is a city.
Cities have police officers.

[ericdaoust]

[2014olympicgold]

The solution Canada is likely going to take is charge the US tariffs on how much steel we sell them. About half of Canada's steel gets sold to the USA so it's pretty much a "Oh you're doing it to us? We'll do it to you" situation.

[lucafen4]

Didn't take long to respond:

Major U.S. trading partners wasted little time Thursday striking back against a White House move to slap steel and aluminum tariffs on Canada, Mexico and the European Union.
"This is protectionism, pure and simple," said European Commission's president, Jean-Claude Juncker, as European trade officials issued a list of hundreds of U.S. products, everything from peanut butter to motorcycles, which would now be subject to tariffs by European consumers.



Mexico, the third largest U.S. trade partner, said it would penalize U.S. imports including pork bellies, apples, grapes, cheeses and flat steel.




Canada, the second largest trade partner, behind China, responded with "dollar for dollar" tariffs against U.S. steel and aluminum exports

full article: https://www.cnbc.com/2018/05/31/u-s-...m-tariffs.html

[Rylant]

I definitely think that this is going to get ugly (The tariffs I mean; not this thread). Canada, Europe and Mexico have already threatened retaliation. Is this all based on Trump wanting to punish China as punishment for intellectual property theft? Is he trying to push nations around internationally? Or am I missing something here. A trade dispute initiated by Trump... this can't end well for anybody.

Rylant

[ericdaoust]

I definitely think that this is going to get ugly (The tariffs I mean; not this thread). Canada, Europe and Mexico have already threatened retaliation. Is this all based on Trump wanting to punish China as punishment for intellectual property theft? Is he trying to push nations around internationally? Or am I missing something here. A trade dispute initiated by Trump... this can't end well for anybody.

Rylant

I think it's typical global politics. It'll work itself out at some point.

[2014olympicgold]

The EU's tariffs on jewelry will cost the state of New York like $1.5 billion if I read that right. Like no way this holds up.

In the world where people can start up jobs in a snap then ya maybe this works at first. Just jobs pop up that used to be imported, but no way this works. No Way.

[lucafen4]

I think it's typical global politics. It'll work itself out at some point.

2 1/2 years time?

[Rylant]

2 1/2 years time?

Ya, I certainly don't see this as an overnight thing. As well, relationships are going to be strained because of it. I don't think Trump cares much about that, though.

Rylant

[Canucks_fan18]

So our headoffice (we weld I-Beams and C-Channels and what not) just told us they're scrambling to adjust all quotes to add the 25% cost we're getting hit on and transfering it right to the customer. As I'm not totally ok with that as our head guys make millions easily, it's what everyone will do. Pass the cost onto the customer.

Car prices are going to be insane. Look up the autoplants in southern ontario alone. We build stuff for their plants, think they won't add that cost to your car? Yeah, it'll be expensive to buy a new car soon if this holds. Which raises the demand for used cars, which raises the price you can sell it for.

Trickle down is going to kill people. Hamilton housing market could very well crash too, as people can't afford to be here.

I too am in manufacturing and ship quite a bit of product down to the States. My understanding at least applicable to the product we manufacture, is that we add enough value added processes or cost into the base steel that we effectively change the tariff class to a new product. For example taking a piece of raw bar steel worth $500.00, adding $650 of machining, $300.00 of welding and $150.00 of coating. That $500 raw bar steel product is now a manufactured good worth $1600.00 and has gone through a significant change thus changing it's tariff classification.

[doulos]

And at the same time it can all be moot by like Tuesday.

I wonder what the price difference between getting steel from overseas is. Like imagine if the world just went, "Ok, we'll go elsewhere" because of this. US would likely take a beating on this idea,.

Tuesday might even be a stretch considering Trump seems to have the attention span of a gnat.