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What happens to Mazda in the USA if a tariff gets imposed?
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?
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.
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.
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
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.