Quote:
Originally Posted by Fuzz
The problem isn't the tariffs, the tariffs are the solution to the problem.
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So it turns out that the tariffs may not really solve the problem (may be more effective in North America, but still not as clear cut as though). A trade war is really going to hurt domestic producers too.
European car companies like BMW and Volkswagen rely on China for both reducing manufacturing costs of vehicles they sell in Europe, but China is also the largest vehicle market in the world and is a major market for their sales. GM's top sales market from 2010 to 2023 was actually China. China reciprocating tariffs will significantly affect cash flows and plans for these automakers through the EV transition.
https://www.cnbc.com/2024/05/06/us-a...-in-china.html
https://www.reuters.com/business/aut...source=twitter
It may still be the best way to keep domestic manufacturing jobs, but it's not pain free for sure