Automotive Tariffs 25% on Canada and Mexico

illopp00

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Is this the end of Chrylser? The only car/minivan they make is the Pacifica and it's made in Canada. I think Lucid should make a 60K Gravity pure, get out the Atlas motor, make it RWD with the GT battery and strip out everything except the purluxe and outlets.
 
Is this the end of Chrylser? The only car/minivan they make is the Pacifica and it's made in Canada. I think Lucid should make a 60K Gravity pure, get out the Atlas motor, make it RWD with the GT battery and strip out everything except the purluxe and outlets.
You don't want to cannabalize midsize sales....stick to plan....
 
You don't want to cannabalize midsize sales....stick to plan....

Gotta innovate and roll with the punches. I think turning something around quick might be to insane on their supply chain tho, especially if it’s the carpets holding up the Gravity..
 
Well today it seems exemptions may be put in for auto etc. It's all just a game to cause shock and awe chopping and changing decisions made every 24 to 48 hours.

But they say they know what they’re doing. You don’t trust them?

Maybe the plan is to barrel their way through; that’s certainly one kind of maze-solving algorithm.
 
NYT:
Auto tariff pause: The Trump administration said on Wednesday that it would allow carmakers to escape the tariffs imposed on all goods from Canada and Mexico for one month. The announcement came a day after Mr. Trump imposed blanket 25 percent tariffs on all products entering the United States from those countries. Read more ›
 
Apparently, there was a provision in Congress to also give a tax credit to US made vehicles...Otherwise it looks like April 3rd...
 
The tariffs that were announced yesterday only apply to entire cars and do not apply to imported parts so I would think this should not impact Lucid. It actually could even be a benefit for Lucid.
 
The tariffs that were announced yesterday only apply to entire cars and do not apply to imported parts so I would think this should not impact Lucid. It actually could even be a benefit for Lucid.
Correct. But anomalous. If 98% of a car were manufactured in the US but final assembly was done in Canada or Mexico, the entire car would be subject to the tariffs. And, the converse, if 98% of the parts were made abroad, but final assembly occurred in the US, then the tariffs would not apply.

It certainly looks like it is designed to benefit Tesla and not Ford or GM which move parts and assembly back and forth across the border pursuant to historic international treaties (NAFTA).
 
The tariffs that were announced yesterday only apply to entire cars and do not apply to imported parts so I would think this should not impact Lucid. It actually could even be a benefit for Lucid.
Yeah…… no. Expect price hikes across the board

“The White House later clarified that foreign auto parts would also be taxed at the 25% rate even if the vehicles they go into are assembled domestically.

However, companies that import vehicles under the United States-Mexico-Canada Agreement (USMCA) will get special consideration until the Commerce Department establishes a process for levying the 25% duties, the White House said.”
 
NYT:
Auto tariff pause: The Trump administration said on Wednesday that it would allow carmakers to escape the tariffs imposed on all goods from Canada and Mexico for one month. The announcement came a day after Mr. Trump imposed blanket 25 percent tariffs on all products entering the United States from those countries. Read more ›
And in a few years the next President gets rid of them….what a clueless cluster. As an auto manufacturer, how do you plan? Chaos everywhere……
 
I think you have to lock up your supply chain and pre-order somewhat, but it seems every automaker is in the same position, Lucid, Rivian and Tesla are in better position. All their EV SUV competitors are generally built in the US however, so I think the issue is the model range pricing gets very screwed up. And small cars are really going to be a shock.
 
Is this the end of Chrylser? The only car/minivan they make is the Pacifica and it's made in Canada. I think Lucid should make a 60K Gravity pure, get out the Atlas motor, make it RWD with the GT battery and strip out everything except the purluxe and outlets.
ARE YOU CALLING THE GRAVITY A MINIVAN?
 
How will the tariffs benefit US consumers now or in the long term? Will they be a powerful incentive for manufacturers to build plants here and source all components domestically? The last time tariffs were this high in the US was in the early 1930s. You do not have to be an economist to know what happened then.
 
ARE YOU CALLING THE GRAVITY A MINIVAN?
Isn't the best antidote to this nonsense to lean in and then make a more minivanish one? Then you can't call Gravity SUV a minivan if there is a 2nd Gravity Minivan:)
 
Isn't the best antidote to this nonsense to lean in and then make a more minivanish one? Then you can't call Gravity SUV a minivan if there is a 2nd Gravity Minivan:)
A number of years ago Mercedes tried to create a "minivan" that opened like and looked like a non raised wagon: the R series. They made it from 2006 to 2012:


They sold so few that they became unicorns. A buddy of mine bought a used one a about seven years ago so I found myself looking for others. In a year or so of looking I think I saw one.

Mercedes gave up on the idea and I don't think anyone else has tried it since.
 
The tariffs that were announced yesterday only apply to entire cars and do not apply to imported parts so I would think this should not impact Lucid. It actually could even be a benefit for Lucid.

That had been the supposition from early remarks by Trump. But when the actual Executive Order emerged, it included 25% tariffs on components manufactured outside the U.S., but with some exceptions. From an NBC report:

"Speaking from the Oval Office, Trump initially said he was imposing a 25% tariff on all cars coming into the country. The White House later clarified that foreign auto parts would also be taxed at the 25% rate even if the vehicles they go into are assembled domestically.

However, companies that import vehicles under the United States-Mexico-Canada Agreement (USMCA) will get special consideration until the Commerce Department establishes a process for levying the 25% duties, the White House said.

USMCA-compliant auto parts will remain tariff-free until the commerce secretary, in consultation with U.S. Customs and Border Protection, establishes a process to apply tariffs to their non-U.S. content."

Of course, whether any of this happens is anyone's guess. Bluster, threats, and chaos seem to be the order of the day, not any stable economic program around which companies can plan.
 
I don't know the current situation, but Air seats were once sourced from Germany. And reports last year suggested some Gravity ADAS componentry was being developed and tested in South Korea in concert with Hyundai.

I have a feeling that Lucid won't avoid some significant cost hits on the Air and the Gravity if these tariffs stick. It might also slow development of the mid-size Earth if Lucid is already working with offshore suppliers and has to consider switching horses midstream. This is part of the problem with this we-will-we-won't-for-now-we-might-yet tariff mirror house in which businesses now find themselves week-in and week-out.
 
How will the tariffs benefit US consumers now or in the long term? Will they be a powerful incentive for manufacturers to build plants here and source all components domestically? The last time tariffs were this high in the US was in the early 1930s. You do not have to be an economist to know what happened then.
this benefits consumers because adding an artificial tax to other brands that tesla won't have will cause tesla car pricing to be more attractive (relatively) in an effort to shore-up tesla sales, which otherwise left unprotected are declining. and, because teslas are purchase by consumers, this move therefore benefits consumers immediately by having them incented to purchase said brand and benefitting from that that they did not have to purchase a competitive brand. QED (/s)

One thing I'm not clear on for Tesla or Lucid is where the critical battery minerals come from and will those raw materials be tariffed?
 
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