Trump says US will institute tariffs on steel and aluminum imports next week

#2,226
#2,226
Ford Prepares for Mass Layoffs After Losing $1 Billion to Trump's Trade Tariffs, Report Says

Ford is having a bad year in 2018. Its stock is down 29%, and the tariffs imposed by President Trump have reportedly cost the company $1 billion, as the company is in the midst of a reorganization. Now, the company is announcing layoffs.

Jim Hackett, Ford’s CEO, is working to engineer a $25.5 billion restructuring of the automaker, hoping to cut costs and remain competitive, the Wall Street Journal reports. But auto sales are down, and one reason is the trade tariffs that Trump has imposed on metals and other goods. According to Bloomberg, Hackett has said they have already cost the company $1 billion in profit and could do “more damage” if the disputes aren’t resolved quickly.
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#2,228
#2,228
hog88 said:
Has nothing to do with their only profitable vehicles being priced out of reach for the average Joe.

I'm a ford guy but they have done this to themselves, have you looked at their truck prices lately?
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Typical and predictable. Protectionism is supposed to be about jobs. When it backfires, you blame the employer who was fine before the protectionism.

Free traders told you this would happen but you didn't listen. Saying Ford isn't run perfectly is not a saving grace. Every corporation has problems to deal with (of their own making) and any time a company struggles with protectionism, we can point to problems they made for themselves. OK. That doesn't change the fact that jobs that otherwise would exist are now gone because of Trump.
 
#2,232
#2,232
FWIW, GM already announced trim backs to come in August due to low sales and they are going to make the Blazer in Mexico.

They likely will have trimmed back enough that they don't need to do it again (yet) because of increasing input costs from tariffs.
 
#2,233
#2,233
China Cuts U.S. Treasury Holdings for Third Straight Month

China’s holdings of U.S. Treasuries fell for a third consecutive month in August as the Asian nation struggles to prevent the yuan from weakening amid trade tensions with America.


China’s ownership of U.S. bonds, bills and notes was $1.165 trillion, down from $1.171 trillion in July, according to data released by the Treasury Department on Tuesday. Japan, which is the largest foreign owner of Treasuries after China, decreased its holdings to $1.03 trillion from $1.036 trillion a month earlier. Saudi Arabia boosted its ownership by $2.7 billion to a record $169.5 billion.


Beijing’s sale of Treasuries is sometimes viewed as a response to the trade war, especially after China’s ambassador to the U.S. signaled in March his country could scale back purchases of the debt to retaliate against American tariffs. President Donald Trump since July has imposed tariffs on about half of Chinese imports, with Beijing responding with duties of its own on American goods.


“Holdings have declined over the past three months and may continue to do so as the ongoing trade war sours the relationship between China and the U.S. and thus reduces their appetite for Treasuries,” Thomas Simons, an economist at Jefferies LLC, wrote in a note after the department’s release. “This will be important to keep an eye on going forward.”


But China may have allowed its foreign-exchange reserves to decline as part of a policy to stabilize the yuan and prevent it from weakening further. The currency already has depreciated more than 4 percent against the dollar in the past year amid signs of an economic slowdown and capital outflows. Trump has accused Beijing of deliberately weakening its currency to stimulate exports.

Overall foreign holdings of U.S. Treasuries rose $35.4 billion to $6.287 trillion in August, with Brazil and Ireland also increasing their ownership.

Bloomberg - Are you a robot?
 
#2,234
#2,234
n_huffhines said:
What point? He asked a question.
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if multiple, all manufacturers are going thru layoffs it would make sense to blame the tariffs, and fewer buyers, and you could definitely say tariffs bad. but if only one is affected enough for massive layoffs tariffs don't make as much sense, as they are relatively industry wide.
 
#2,235
#2,235
LouderVol said:
if multiple, all manufacturers are going thru layoffs it would make sense to blame the tariffs, and fewer buyers, and you could definitely say tariffs bad. but if only one is affected enough for massive layoffs tariffs don't make as much sense, as they are relatively industry wide.
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Not true at all, especially in an industry with just a handful of firms. The effects can manifest themselves in a variety of ways, not just mass layoffs. The same tariffs also have different effects on the various firms across the same industry. Time is also a factor. Not everybody is going to immediately react.

If you don't already believe that the steel tariffs are a terrible idea, no amount of layoffs will change your mind.
 
#2,236
#2,236
n_huffhines said:
Not true at all, especially in an industry with just a handful of firms. The effects can manifest themselves in a variety of ways, not just mass layoffs. The same tariffs also have different effects on the various firms across the same industry. Time is also a factor. Not everybody is going to immediately react.

If you don't already believe that the steel tariffs are a terrible idea, no amount of layoffs will change your mind.
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no, I believe they are a bad idea.

I am just not ready to lay the corpse of Ford at the feet of the tariffs just yet.
 
#2,237
#2,237
LouderVol said:
no, I believe they are a bad idea.

I am just not ready to lay the corpse of Ford at the feet of the tariffs just yet.
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Your comments in defense/deflection of tariffs outnumber your comments against 100:1

Fact: Ford's costs artificially and abruptly increased
Fact: Ford has layoffs

What am I missing here?
 
#2,239
#2,239
n_huffhines said:
Your comments in defense/deflection of tariffs outnumber your comments against 100:1

Fact: Ford's costs artificially and abruptly increased
Fact: Ford has layoffs

What am I missing here?
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its called being objective. I can/do think the tariffs are bad without assuming everything wrong in the industry are the tariffs fault. especially when other posters have brought up the problems Ford has been facing in this and other threads.
 
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#2,240
#2,240
hog88 said:
Has nothing to do with their only profitable vehicles being priced out of reach for the average Joe.

I'm a ford guy but they have done this to themselves, have you looked at their truck prices lately?
Click to expand...

What exactly do you think affects the cost of the vehicle?
 
#2,244
#2,244
LouderVol said:
its called being objective. I can/do think the tariffs are bad without assuming everything wrong in the industry are the tariffs fault. especially when other posters have brought up the problems Ford has been facing in this and other threads.
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Nobody is arguing that, but nice strawman. Your objectivity is manifesting itself in unobjective ways.
 
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