I appreciate this post because the subject of tariffs is confusing to me, but Sharyl is someone I trust implicitly, so it's good to know her perspective.
Thanks for sharing this information Sharyl…people need to understand how tariffs work, stop criticizing, and appreciate the reality of “Made in America”.
But Laura , nothing is made by American companies anymore. Even the Japanese who have manufacturing plants in the midwest and south pay substandard wages . if you look under the hood, there are many parts that are made in Japan and the car is only assembled in the US. "Made in America". Sorry, but we gave away our manufacturing base and supremacy starting in 1994. You can wave the flag all you want, but the fact of the matter is the US government and US based manufacturing companies did not, and still don't give a shit about you and me.
Tony, If you are very fortunate to have vehicle that consists mainly of "Made in Japan" parts, you will be fine. If it says "Made in Japan" that means at least it won't fall apart in a year or two. I have been a mechanic for a majority of my 69 years. Ive worked on everything from line trimmers to large trucks. What you need to be worried about is not Japan, Germany or Korea; It is what we in the trade call "CCC" or "Cheap Chinese Crap".
Having dealt with vehicle of all sorts, you can write this in stone, if it says "Made in China" that means it is pure garbage, made as cheap as possible, may last just long enough to get the vehicle out the shop door and back into the owners driveway or garage. This goes double for complete vehicles "Made in China", I'm not buying any vehicle that is "Made in China", that is insanity.
I'm curious to what brand of Chinese vehicles you are familiar with . I do know that BYD is the largest selling EV in the world, but they are not allowed to be sold in the USA. So much for competition . I'm thinking if they sold BYD cars in the US it might bankrupt Tesla, and be a major competitive threat to any EV sold in the United States. I was interested in what you had to say , and given your extensive experience as a mechanic, do you have any direct experience with BYD electric cars ?
I have no direct experience with EV's, not a fan of EV's as they do not meet my financial or my transportation needs. I can drive a good used premium ICE vehicle for 10% of what it costs to buy, maintain and insure an EV. I am well read on them in general, I find the technology interesting.
One anecdote that you may find enlightening is the fact that BYD EV's have a documented history of battery related fires and the frequency of these fires is increasing as more cars hit the roads and these cars "Age". Some Chinese netizens say the "BYD" stands for "Burn Your Dealership". There are also problems with certain premium European EV's that use Chinese battery technology. Look at the S.Korean parking garage fire that started in a Mercedes that uses a Chinese battery for one example of this.
Another telling report comes from Russia, where the supplies of US, European and Japanese cars is cut off. These Western vehicles have been largely replaced by Chinese vehicles. Three years in, the reviews of the vehicles durability and performance in harsh Russian conditions are not very positive. Since China and Russia are in a symbiotic relationship, these complaints and criticisms are eye opening.
Even the Domestic Chinese buyers are increasingly complaining about the poor durability of Chinese vehicles, particularly in corrosion related issues. This certainly is because of the internet and the fact that the average Chinese buyer is likely inexperienced or naive when it comes to buying automobiles. Such reports are all over the internet.
Finally, the lack of BYD and other Chinese EV's is not so much driven by recent Federal laws, but the fact that the various state laws on New car sales typically have very strenuous requirements for dealerships and facilities. Although this is slowly changing, it is still a major roadblock to newcomers to the USA. I would caution ANY BUYER of a new and relatively unknown brand to carefully weigh a "Cheap" up front price with where and how they will get warranty, service and parts for their vehicle, you WILL need service that is guaranteed! Look into the DAEWOO and YUGO fiascos for insight into these issues.
Contrary to the EV propaganda, EV's are VERY complex and warranty repairs, parts and service cost and convenience must figure into your purchase equation. These issues will only get worse as that vehicle ages out. The sparse availability in some areas of technicians who are trained to repair the HV Battery systems can also be a problem.
My thought was, "Why did we screw these people, put them on government assistance, which leads to drug addition, and a continuing spiral of social services? For cheaper toothpicks from China??"
I am sad to say, I am part of the problem. I like my Toyota V-8 4x4, but if Tesla (or others) can build a REAL truck rather than that silly truck of theirs, I will buy USA.
Trump is looking at waging "trade wars" rather than "ballistic wars", and I agree with this view as a Military Parent. I get it, it will be a choppy road ahead... Peace to all.
If tariffs are so terrible why do other countries utilize them?? Are they all misguided?? This seems like a Wall Street vs Main Street feud. I have switched allegiances to Main Street, even though my portfolio doesn’t like it
Yes, a big part of the narrative is shaped by US multinationals enjoying cheap labor or local market access overseas, then exporting to the US free market, instead of producing in America.
The article makes it sound like the tariff is charged on the retail price, not the price that the importer pays. Is that accurate? That would surprise me if that's true. I assumed that the tariff would be charged on the importer's price, so the numbers listed in the article would actually be lower, for example the importer pays $1 for avocados they will resell for $1.50, so a 25% tariff would be $0.25, not $0.38. Or is it actually charged on the retail price?
Thanks! That's what I thought. That's not clear in the article, so the amounts she listed for the tariffs would be less. But it still has a lot of good info!
But the effective cost to the vendor IS $1.75, not $1.50. If he's going to maintain his margin it will be the higher price to the consumer. So you're left with the complicated question, will any or all of the people in the chain absorb some of the tarriff to maintain market share? The truth: nobody knows. And that doesn't change no matter how often you attempt to repeat the experiment.
Still, I'm willing to risk it to improve restrictive imbalances.
I think the whole concept of moving production back to the US is a wonderful idea. I still remember back in the middle of the last century when everything was made in America except “special” imports that were expensive because … they were imports. Maybe you bought them for special occasions or as gifts. Then the “Made in Japan” thing started – especially with electronics – and it was off to the races. 🙄
One thing you didn’t mention is cost absorption. This happens when a foreign company lowers its prices and therefore its profits to remain competitive in the US market. The consumer doesn’t feel much or any impact and the only difference is the extra foreign profit goes to the US coffers instead.
No matter how you look at it , a tariff is a tax on the US population through higher consumer prices. Tariffs are suppose to protect domestic manufacturing , but we don't manufacture much in the US after decades of moving production to low labor cost countries. If we manufactured the stuff we import from China I would say let's level the playing field. The fact is we don't manufacture all those products that you and I buy so there is no manufacturing base to protect. Sharyl defends the policy by highlighting Steel, Aluminum and Bourbon . Who gives a crap about those things, it doesn't effect the majority of our population. So, we are protecting a few remaining industries by taxing the American people. It would raise 600 billion dollars. Where the hell do you think that money is coming from ? Your wallet. It adds to inflation and it doesn't do a damn thing for you and me. I guess we can all stop buying stuff and paying down our personal debt. Now that's an idea.
I understand your conundrum, however, choosing to live in the Most expensive, Most regulated and Highest taxed state in the nation has these same consequences for all who live there. Your State regulations and political climate have consequences that average Americans, such as myself do not have to bear.
Every inflation causing, cost increasing and idiotic regulation that the State of California enacts hurts the "average" Californian first and foremost. The liberals, politicos and the affluent in CA are not affected proportionally as the "average" working class stiff. Many Residents of CA labor under the delusion that the rest of America live in abject poverty, eating gruel and living in mud huts; this is simply false. Once these people learn that they are sadly mistaken, many choose to move out. I have family member who have done just this. There is a good life outside of CA!
This is one reason that there is a net loss of population in CA, in spite of the massive influx of poor illegal immigrants during the last 4 years.. My choice to live in a location that does not have the nice CA weather all the time along, is not "chic", and with the other mostly illusional advantages; does have substantial economic benefits. These advantages far outweigh those mostly illusional advantages of CA for me.
I did not need to "afford to leave" since I never lived in CA. Never did, never wanted to. "A Country Boy Can Survive" sort of guy. This is my point, many folks who lived there in the "Golden Days" are now trapped. I am sorry if you are one of them. I genuinely hope that if you want out, you can find a way to get out.
That "Pot of Gold" at the end of the rainbow has tarnished. All the glitters is not gold. I can still live a middle class life in my chosen state because the cost of living is 1/3 to 1/2 of what it is in CA. It could be better EVERYWHERE, but the politicians will have none of that! Unfortunately, this is nowhere more apparent and obvious than in CA.
Great informative read with some great examples. Tariffs are confusing to most and why they could be beneficial to our economy. If Tesla can build a great American made product, then other car manufacturers should be able to as well. Ler's make that happen General Motors and Ford! Lots of people would love to buy American.
Related to this topic, many of us have often wondered why the US moved so much manufacturing to China, a communist country, for other reasons than the cheap labor. After all, communism has as its goal to destroy capitalism and democracy. Turns out that in the 70's, there was a plan concocted by Henry Kissinger and a few other government officials whose names elude me to split the world into two entities: producers and consumers. The US would be the consumers of products made by the producers and he chose China as an ideal country to be producers since they had the huge population which could supply the US and the world with goods at a cheap manufacturing cost. He believed that the US could control China into being this docile and willing partner since they would have the benefits of having all this manufacturing that we would move there and their huge workforce that would then be employed as a result. Those plans of course only made it half way, because after we moved all the manufacturing there those plans fell flat when the Chinese COMMUNISTS resisted following our plans for them and decided that strengthening their country against us would better server their ideology and we had given them the very tools to do so.
@sharylattkisson@substack.com - I wonder if you have ever read about this and consider a special program to highlight this boondoggle that we (the US) created ?
Frankly, I wish I knew. I had always thought highly of Kissinger but as time goes on and I learn more and more about him, this was one evil person so his motivation to create this boondoggle is probably not what it appears to be. He's (he was) actually one of "them", globalists, that have plans for you and me (and they are not good).
I love the story when the “Jersey Girls” (9/11 widows) went to meet him to discuss the investigation. Shrewd negotiator that he was, he turned the thermostat in his office to, like, 90 degrees to curtail the visit. People who think and do these things aren’t shrewd, or “evil geniuses.” They’re just douchebags. I’d wager Kissinger was a few points smarter than Karl Rove. “For what shall it profit a man, if he shall gain the whole world, and lose his own soul?”
After Biden’s 25% inflation caused by spending on worthless projects and enriching his allies (paying off the $B debt of Illinois, California and New York) plus getting us into a worthless war (another $300B), I’m glad we have a president that is trying something new. Since Clinton we have gone so far in debt we can’t keep doing the same thing and expect a different outcome. Offshoring our manufacturing was a terrible idea that the global elites pushed for. Buckle up and “Buy American” stop buying the cheap cr@p that breaks or wears out in a few months. I gladly pay a bit for American made!
Sharyl, Great work here. I was under the impression that many of these proposed tariffs were going to be reciprocal in nature? Meaning that is NATION A tariffs a US Product the US would impose a similar tariff of the same goods from NATION A. This is something that is not being mentioned. Or is this not the case?
Hi. This is helpful BUT like most articles on the subject, it never details the tariff charged on American exports. For example, what are the tariffs on U.S. made corn, oranges, etc?
I appreciate this post because the subject of tariffs is confusing to me, but Sharyl is someone I trust implicitly, so it's good to know her perspective.
Plus she uses specific examples both itemized and the financial implications.
And she gives the history of tariffs that hits the highlights and is easy to follow. Plus she's Sharyl, and there's only one of her.
See @realSPMorrison on X.
Thanks for sharing this information Sharyl…people need to understand how tariffs work, stop criticizing, and appreciate the reality of “Made in America”.
But Laura , nothing is made by American companies anymore. Even the Japanese who have manufacturing plants in the midwest and south pay substandard wages . if you look under the hood, there are many parts that are made in Japan and the car is only assembled in the US. "Made in America". Sorry, but we gave away our manufacturing base and supremacy starting in 1994. You can wave the flag all you want, but the fact of the matter is the US government and US based manufacturing companies did not, and still don't give a shit about you and me.
Tony, If you are very fortunate to have vehicle that consists mainly of "Made in Japan" parts, you will be fine. If it says "Made in Japan" that means at least it won't fall apart in a year or two. I have been a mechanic for a majority of my 69 years. Ive worked on everything from line trimmers to large trucks. What you need to be worried about is not Japan, Germany or Korea; It is what we in the trade call "CCC" or "Cheap Chinese Crap".
Having dealt with vehicle of all sorts, you can write this in stone, if it says "Made in China" that means it is pure garbage, made as cheap as possible, may last just long enough to get the vehicle out the shop door and back into the owners driveway or garage. This goes double for complete vehicles "Made in China", I'm not buying any vehicle that is "Made in China", that is insanity.
BTW, Your last sentence is correct.
I'm curious to what brand of Chinese vehicles you are familiar with . I do know that BYD is the largest selling EV in the world, but they are not allowed to be sold in the USA. So much for competition . I'm thinking if they sold BYD cars in the US it might bankrupt Tesla, and be a major competitive threat to any EV sold in the United States. I was interested in what you had to say , and given your extensive experience as a mechanic, do you have any direct experience with BYD electric cars ?
I have no direct experience with EV's, not a fan of EV's as they do not meet my financial or my transportation needs. I can drive a good used premium ICE vehicle for 10% of what it costs to buy, maintain and insure an EV. I am well read on them in general, I find the technology interesting.
One anecdote that you may find enlightening is the fact that BYD EV's have a documented history of battery related fires and the frequency of these fires is increasing as more cars hit the roads and these cars "Age". Some Chinese netizens say the "BYD" stands for "Burn Your Dealership". There are also problems with certain premium European EV's that use Chinese battery technology. Look at the S.Korean parking garage fire that started in a Mercedes that uses a Chinese battery for one example of this.
Another telling report comes from Russia, where the supplies of US, European and Japanese cars is cut off. These Western vehicles have been largely replaced by Chinese vehicles. Three years in, the reviews of the vehicles durability and performance in harsh Russian conditions are not very positive. Since China and Russia are in a symbiotic relationship, these complaints and criticisms are eye opening.
Even the Domestic Chinese buyers are increasingly complaining about the poor durability of Chinese vehicles, particularly in corrosion related issues. This certainly is because of the internet and the fact that the average Chinese buyer is likely inexperienced or naive when it comes to buying automobiles. Such reports are all over the internet.
Finally, the lack of BYD and other Chinese EV's is not so much driven by recent Federal laws, but the fact that the various state laws on New car sales typically have very strenuous requirements for dealerships and facilities. Although this is slowly changing, it is still a major roadblock to newcomers to the USA. I would caution ANY BUYER of a new and relatively unknown brand to carefully weigh a "Cheap" up front price with where and how they will get warranty, service and parts for their vehicle, you WILL need service that is guaranteed! Look into the DAEWOO and YUGO fiascos for insight into these issues.
Contrary to the EV propaganda, EV's are VERY complex and warranty repairs, parts and service cost and convenience must figure into your purchase equation. These issues will only get worse as that vehicle ages out. The sparse availability in some areas of technicians who are trained to repair the HV Battery systems can also be a problem.
Good Luck and thanks for the reply.
See Tucker's interview with Bob Lighthizer on Apple Podcast or Rumble. College level edumacation.
Strong, Maine - Toothpick Capital of the World
I was on vacation playing golf with friends from Maine near Strong, Maine which had closed factories and a depressed feel. My Maine friends explained to me their legacy -https://www.bangordailynews.com/2021/05/24/bangor-metro/a-tiny-maine-town-was-once-the-toothpick-capital-of-the-world/
My thought was, "Why did we screw these people, put them on government assistance, which leads to drug addition, and a continuing spiral of social services? For cheaper toothpicks from China??"
I am sad to say, I am part of the problem. I like my Toyota V-8 4x4, but if Tesla (or others) can build a REAL truck rather than that silly truck of theirs, I will buy USA.
Trump is looking at waging "trade wars" rather than "ballistic wars", and I agree with this view as a Military Parent. I get it, it will be a choppy road ahead... Peace to all.
My Toyota was built here in America. Some car makes with American names outsource their parts. It isn't the name that matters, it's where it's built.
If tariffs are so terrible why do other countries utilize them?? Are they all misguided?? This seems like a Wall Street vs Main Street feud. I have switched allegiances to Main Street, even though my portfolio doesn’t like it
Yes, a big part of the narrative is shaped by US multinationals enjoying cheap labor or local market access overseas, then exporting to the US free market, instead of producing in America.
The article makes it sound like the tariff is charged on the retail price, not the price that the importer pays. Is that accurate? That would surprise me if that's true. I assumed that the tariff would be charged on the importer's price, so the numbers listed in the article would actually be lower, for example the importer pays $1 for avocados they will resell for $1.50, so a 25% tariff would be $0.25, not $0.38. Or is it actually charged on the retail price?
The price the foreign vendor charges for the goods at the POE is what the tariff is based on, not the retail price charged at the store.
Thanks! That's what I thought. That's not clear in the article, so the amounts she listed for the tariffs would be less. But it still has a lot of good info!
But the effective cost to the vendor IS $1.75, not $1.50. If he's going to maintain his margin it will be the higher price to the consumer. So you're left with the complicated question, will any or all of the people in the chain absorb some of the tarriff to maintain market share? The truth: nobody knows. And that doesn't change no matter how often you attempt to repeat the experiment.
Still, I'm willing to risk it to improve restrictive imbalances.
I think the whole concept of moving production back to the US is a wonderful idea. I still remember back in the middle of the last century when everything was made in America except “special” imports that were expensive because … they were imports. Maybe you bought them for special occasions or as gifts. Then the “Made in Japan” thing started – especially with electronics – and it was off to the races. 🙄
One thing you didn’t mention is cost absorption. This happens when a foreign company lowers its prices and therefore its profits to remain competitive in the US market. The consumer doesn’t feel much or any impact and the only difference is the extra foreign profit goes to the US coffers instead.
No matter how you look at it , a tariff is a tax on the US population through higher consumer prices. Tariffs are suppose to protect domestic manufacturing , but we don't manufacture much in the US after decades of moving production to low labor cost countries. If we manufactured the stuff we import from China I would say let's level the playing field. The fact is we don't manufacture all those products that you and I buy so there is no manufacturing base to protect. Sharyl defends the policy by highlighting Steel, Aluminum and Bourbon . Who gives a crap about those things, it doesn't effect the majority of our population. So, we are protecting a few remaining industries by taxing the American people. It would raise 600 billion dollars. Where the hell do you think that money is coming from ? Your wallet. It adds to inflation and it doesn't do a damn thing for you and me. I guess we can all stop buying stuff and paying down our personal debt. Now that's an idea.
" I guess we can all stop buying stuff and paying down our personal debt." EXACTLY What I am doing and have been doing for years.
I understand your conundrum, however, choosing to live in the Most expensive, Most regulated and Highest taxed state in the nation has these same consequences for all who live there. Your State regulations and political climate have consequences that average Americans, such as myself do not have to bear.
Every inflation causing, cost increasing and idiotic regulation that the State of California enacts hurts the "average" Californian first and foremost. The liberals, politicos and the affluent in CA are not affected proportionally as the "average" working class stiff. Many Residents of CA labor under the delusion that the rest of America live in abject poverty, eating gruel and living in mud huts; this is simply false. Once these people learn that they are sadly mistaken, many choose to move out. I have family member who have done just this. There is a good life outside of CA!
This is one reason that there is a net loss of population in CA, in spite of the massive influx of poor illegal immigrants during the last 4 years.. My choice to live in a location that does not have the nice CA weather all the time along, is not "chic", and with the other mostly illusional advantages; does have substantial economic benefits. These advantages far outweigh those mostly illusional advantages of CA for me.
I did not need to "afford to leave" since I never lived in CA. Never did, never wanted to. "A Country Boy Can Survive" sort of guy. This is my point, many folks who lived there in the "Golden Days" are now trapped. I am sorry if you are one of them. I genuinely hope that if you want out, you can find a way to get out.
That "Pot of Gold" at the end of the rainbow has tarnished. All the glitters is not gold. I can still live a middle class life in my chosen state because the cost of living is 1/3 to 1/2 of what it is in CA. It could be better EVERYWHERE, but the politicians will have none of that! Unfortunately, this is nowhere more apparent and obvious than in CA.
Move to Louisiana.
Stop electing the people who cause those problems.
Great informative read with some great examples. Tariffs are confusing to most and why they could be beneficial to our economy. If Tesla can build a great American made product, then other car manufacturers should be able to as well. Ler's make that happen General Motors and Ford! Lots of people would love to buy American.
A real expert on tariffs is Spencer Morrisson @realSPMorrison on X. Read "Reshore" by him.
The fact is from after the Civil War to 1913 when communist Wilson implemented the Income Tax America was the most prosperous it has ever been.
From 2018 through the Covid Scamdemic we had total deflation; the 25% tariffs on steel and aluminum dropped the world price of each 23%.
Strategic tariffs and tax reduction gave you the highest purchasing power you have ever had in Jan 2020.
See Tucker's interview with Bob Lighthizer on Apple Podcast or Rumble. College level edumacation.
As always from Sharyl Attkisson an explanation of tariffs that most Americans do not understand.
She represents the best in honest journalism.
Related to this topic, many of us have often wondered why the US moved so much manufacturing to China, a communist country, for other reasons than the cheap labor. After all, communism has as its goal to destroy capitalism and democracy. Turns out that in the 70's, there was a plan concocted by Henry Kissinger and a few other government officials whose names elude me to split the world into two entities: producers and consumers. The US would be the consumers of products made by the producers and he chose China as an ideal country to be producers since they had the huge population which could supply the US and the world with goods at a cheap manufacturing cost. He believed that the US could control China into being this docile and willing partner since they would have the benefits of having all this manufacturing that we would move there and their huge workforce that would then be employed as a result. Those plans of course only made it half way, because after we moved all the manufacturing there those plans fell flat when the Chinese COMMUNISTS resisted following our plans for them and decided that strengthening their country against us would better server their ideology and we had given them the very tools to do so.
@sharylattkisson@substack.com - I wonder if you have ever read about this and consider a special program to highlight this boondoggle that we (the US) created ?
And this was about 25+ years AFTER China’s “Century of Humiliation”? Was Kissinger really just a dumb fuck?
Frankly, I wish I knew. I had always thought highly of Kissinger but as time goes on and I learn more and more about him, this was one evil person so his motivation to create this boondoggle is probably not what it appears to be. He's (he was) actually one of "them", globalists, that have plans for you and me (and they are not good).
I love the story when the “Jersey Girls” (9/11 widows) went to meet him to discuss the investigation. Shrewd negotiator that he was, he turned the thermostat in his office to, like, 90 degrees to curtail the visit. People who think and do these things aren’t shrewd, or “evil geniuses.” They’re just douchebags. I’d wager Kissinger was a few points smarter than Karl Rove. “For what shall it profit a man, if he shall gain the whole world, and lose his own soul?”
After Biden’s 25% inflation caused by spending on worthless projects and enriching his allies (paying off the $B debt of Illinois, California and New York) plus getting us into a worthless war (another $300B), I’m glad we have a president that is trying something new. Since Clinton we have gone so far in debt we can’t keep doing the same thing and expect a different outcome. Offshoring our manufacturing was a terrible idea that the global elites pushed for. Buckle up and “Buy American” stop buying the cheap cr@p that breaks or wears out in a few months. I gladly pay a bit for American made!
California received $26B as part of the American Rescue Plan in 2021 to help pay off debt. So USA taxpayers are subsidizing California loonies
Sharyl, Great work here. I was under the impression that many of these proposed tariffs were going to be reciprocal in nature? Meaning that is NATION A tariffs a US Product the US would impose a similar tariff of the same goods from NATION A. This is something that is not being mentioned. Or is this not the case?
Interesting explanation of a difficult subject to grasp.
Hi. This is helpful BUT like most articles on the subject, it never details the tariff charged on American exports. For example, what are the tariffs on U.S. made corn, oranges, etc?