Breaking News: U.S. & Canada Reach Trade Agreement

I was assured by so many people that Trump's objectives were ultimately freer trade.

The deal is expected to put upward pressure on U.S. auto prices to comply with the USCMA deal terms. Now 75% of auto components must come from within the trade bloc, up from 62.5%. In addition, 40% of value added to vehicles will have to come from workers earning at least $16 an hour.

"The new regional value content requirements mean that automakers will not able to source parts as freely, so there will be added costs associated with vehicle manufacturing," said Ivan Drury, Edmunds' Senior Manager of Industry Analysis. "Given that new vehicle prices are already stretched to record highs, things could take an ugly turn for consumer wallets."

Shares of General Motors (GM) and Ford (F) rose 1.6% and 0.8%, respectively, amid relief that North America supply chains won't be severed.

Yet the prospect of higher U.S. auto prices under the Trump Nafta replacement raises the odds that the Trump administration will hike global auto tariffs. Currently, the U.S. has a 2.5% tariff on imports of autos. If complying with USCMA raises costs, it makes that 2.5% tariff even less of an advantage for domestic production.

While the U.S. is in trade talks with the European Union and Japan, Trump didn't sound very flexible. "They'll make the cars in the United States or they'll pay tariffs."
"The rest of the world is looking to take advantage of us as a region," Trump said. Under the new Trump Nafta deal, "We'll be able to compete with anybody."
Trump tariffs of as much as 25% on autos forced Canada and Mexico to the bargaining table. While both countries made concessions, they largely protected current auto production.


https://www.investors.com/news/economy/trump-nafta-deal-trump-auto-sector/
 
No matter what the net economic impact might or not be coming from this, if mothballed US factories (especially steel and aluminum) go online and thrive then it is a massive win. Liberals might go all hissy about stinky factories firing back up and cranking out goods on US soil, but military infrastructure built out of forest products won't guarantee our freedom.

Trump must not blink when dealing with China. Previous administrations did nothing while they dumped subsidized materials into the US as factories in industries here. that are critical to national security, were falling like dominos.
 
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Shocker huff, politicians lie to get elected. It seems that every thread that mentions trade deals or tariffs you chime in thinking you know what you are talking about. I mean lol.

I'm not saying he lied. He didn't really pretend much to care about free trade. It was a position attributed to him by people here who know free trade is best and they were trying to justify his protectionism.
 
We have talked about this on here before. It is just a re-branding of basically the same deal so Trump can claim some sort of political victory to his base who won't take the time to see what is actually in the deal. That is what matters to him (boasting of victory) - not the actual substance.
Funny. we don't know enough about it yet to know if there were big differences. Dairy right now seems to be the biggest, no idea if its big enough on its own to claim the deal is substantially different. guess we should wait.
 
I'm not saying he lied. He didn't really pretend much to care about free trade. It was a position attributed to him by people here who know free trade is best and they were trying to justify his protectionism.

You constantly say protectionism like it’s a bad thing . If your president doesn’t “ protect “ his country , our goods and services who is supposed to ? It’s actually and factually his Job . I for one love that we have someone willing to tell the global elites to stick it and to use the power we have as the largest economy on the planet to look out for our own interests . It’s refreshing to those of us who have had enough of other countries big or small acting like they can force our hand .
 
You constantly say protectionism like it’s a bad thing . If your president doesn’t “ protect “ his country , our goods and services who is supposed to ? It’s actually and factually his Job . I for one love that we have someone willing to tell the global elites to stick it and to use the power we have as the largest economy on the planet to look out for our own interests . It’s refreshing to those of us who have had enough of other countries big or small acting like they can force our hand .

You're getting fooled by how a word sounds, not what it actually represents. How could you be against Pro Choice policies? What's wrong with having choice? The PATRIOT act? What? you don't like patriots? No child left behind, how could you be against that? Protectionism....he's protecting his country, duh.

He's protecting special interests at the expense of Americans as a whole. Jesus, dude.
 
You're getting fooled by how a word sounds, not what it actually represents. How could you be against Pro Choice policies? What's wrong with having choice? The PATRIOT act? What? you don't like patriots? No child left behind, how could you be against that? Protectionism....he's protecting his country, duh.

He's protecting special interests at the expense of Americans as a whole. Jesus, dude.

I’m not being fooled by anything , I told you how I feel about your use of the word “ protectionism “ like it’s a bad thing to protect your countries good and services . It’s the man job to do that against other countries trying to take advantage of us . I don’t see anything he’s doing as stopping us from having choices . What good or services has he stopped you from receiving or from making a choice to choose another vender ?
 
I’m not being fooled by anything , I told you how I feel about your use of the word “ protectionism “ like it’s a bad thing to protect your countries good and services . It’s the man job to do that against other countries trying to take advantage of us . I don’t see anything he’s doing as stopping us from having choices . What good or services has he stopped you from receiving or from making a choice to choose another vender ?

Who said it would stop us from having choices? We basically have the same choices, we're just forced by the big government central planners to pay more for our choices.
 
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Who said it would stop us from having choices? We basically have the same choices, we're just forced by the big government central planners to pay more for our choices.

What are you paying more for ? Plastic razors , shoes made in China , how about those soybean prices you were just talking about ? They are down so are you paying more for soybean products or seed for next years crop ? This is the part where you talk about auto prices going up and steel / aluminum I’m sure you buy a ton of both and at least 2 new cars a year. Car prices go up , have always gone up because we are willing to pay the price for newer bobbles and trinkets than we currently have . Now to the steel and aluminum this is where his job comes in factually ... China is dumping both into our markets and putting or have put American workers out of a job . Why buy either to make our products here when we know doing so puts or own workers out of a job . Your take is globalizism mine is America first . You like free and cheap I believe that leads to dependency on other countries when we have the means to do it ourselves .
 
What are you paying more for ? Plastic razors , shoes made in China , how about those soybean prices you were just talking about ? They are down so are you paying more for soybean products or seed for next years crop ? This is the part where you talk about auto prices going up and steel / aluminum I’m sure you buy a ton of both and at least 2 new cars a year. Car prices go up , have always gone up because we are willing to pay the price for newer bobbles and trinkets than we currently have . Now to the steel and aluminum this is where his job comes in factually ... China is dumping both into our markets and putting or have put American workers out of a job . Why buy either to make our products here when we know doing so puts or own workers out of a job . Your take is globalizism mine is America first . You like free and cheap I believe that leads to dependency on other countries when we have the means to do it ourselves .

We're paying more for everything that is affected by tariffs. What are you even asking? What has aluminum and steel in it?

It's not as simple as a few things costing more. We're literally destroying jobs to create them.

Look at the solar industry. The tariff on panels means Americans will buy fewer solar installations, which means we lose a bunch of service industry jobs. There are 260,000 jobs in solar retail/installation here in the US and there are only 38,000 manufacturing jobs. The solar tariff hurts the retail/service side of the business and MAYBE helps the manufacturing side (which ironically is filled with companies owned by Chinese investors).

[The Solar Energy Industries Association] estimates the job losses will number 23,000 for this year, and result in "billions lost in investment." SEIA President Abigail Hopper condemned Trump's decision in a statement.

"While tariffs in this case will not create adequate cell or module manufacturing to meet U.S. demand, or keep foreign-owned Suniva and SolarWorld afloat, they will create a crisis in a part of our economy that has been thriving, which will ultimately cost tens of thousands of hard-working, blue-collar Americans their jobs," she said.

The majority of the current 260,000 solar jobs are in installation, with only 38,000 (or 14%) in manufacturing. Moreover, the case threatened two-thirds of future utility-scale solar installations set to come online in the next five years, which is the biggest and most vulnerable solar market.

Trump Launches Solar Panel Trade War with China
 
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We're paying more for everything that is affected by tariffs. What are you even asking? What has aluminum and steel in it?

It's not as simple as a few things costing more. We're literally destroying jobs to create them.


Look at the solar industry. The tariff on panels means Americans will buy fewer solar installations, which means we lose a bunch of service industry jobs. There are 260,000 jobs in solar retail/installation here in the US and there are only 38,000 manufacturing jobs. The solar tariff hurts the retail/service side of the business and MAYBE helps the manufacturing side (which ironically is filled with companies owned by Chinese investors).



Trump Launches Solar Panel Trade War with China

What happens in our system when there is a DEMAND in the market but the SUPPLY isn’t there to meet it ?
 
What happens in our system when there is a DEMAND in the market but the SUPPLY isn’t there to meet it ?

This happens already for certain goods at times. What good are you talking about? What does this have to do with protectionism? Closing ourselves off to trade (supply) is not a good way to meet demand....it's the opposite of what you should do.
 
This happens already for certain goods at times. What good are you talking about? What does this have to do with protectionism? Closing ourselves off to trade (supply) is not a good way to meet demand....it's the opposite of what you should do.


Tell me what goods have we closed our selves off to? You yell protectionism while we are yelling it’s about damn time somebody stood up for our goods and services going to other markets and goods allowed into this one . Nobody is closing off anything . Somewhere along the line somebody sold you on the idea that we are a third world economy and we have to have the rest of the worlds good at their demanded prices and quantities or we will fold up shop . That’s a cute little globalist idiology but it’s bullfeathers .
 
Why do you keep mentioning services? You have no idea what you're talking about anything.
 
Why do you keep mentioning services? You have no idea what you're talking about anything.

That’s a huge assumption when you don’t know anything about me . Listening to your ideas I wouldnt say you don’t know anything because I don’t know you or what you do . I can say in my opinion you are full of BS and love to cry about anything having to do with the economy and Trump. I’m also guessing left leaning libertarian .
 
We're paying more for everything that is affected by tariffs. What are you even asking? What has aluminum and steel in it?

It's not as simple as a few things costing more. We're literally destroying jobs to create them.

Look at the solar industry. The tariff on panels means Americans will buy fewer solar installations, which means we lose a bunch of service industry jobs. There are 260,000 jobs in solar retail/installation here in the US and there are only 38,000 manufacturing jobs. The solar tariff hurts the retail/service side of the business and MAYBE helps the manufacturing side (which ironically is filled with companies owned by Chinese investors).



Trump Launches Solar Panel Trade War with China

On the bright side, those 230k solar workers shouldn’t have any problems finding work.
 
India's engineers are working for what? A quarter of the pay? They could be doing to domestic engineering services what China (and Mexico and SE Asia) has done to our manufacturing. I'm not too concerned that Vietnamese factory workers are slathering glue on Nikes but I kind of prefer that our computer engineers and rocket scientists are based in the US.
 
First I am seeing any type of numbers thrown around. they are saying the tariffs on the US will be like a 20 billion tax. but the tax cuts have us at plus 150 billion.

It’s all so involved and interwoven that it’s really hard to find or be able to tell the true numbers either way . I think it’s almost impossible to do like an itemized tit for tat and come up with the truth . But the market either seems to not mind or they are waiting to see what’s next . I think he went about it wrong by taking on everyone at once instead of one or two at a time leaving China for last but who knows .
 

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