Gordon, Twenty Percent, Twenty Five Twenty Five Thousand Dollar discussed on

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Gordon deal thanks for being with us on this friday july six gordon deal jennifer kushinka rather rossa k in for jennifer kushinka some of our top stories and headlines a diver helping rescue a soccer team trapped in a cave in thailand has died us in china have started swapping tariffs as of midnight and battled epa administrator scott pruitt has resigned secretary of state mike pompeo in north korea for denuclearization talks police in texas say dallas woman shot a man as he tried to carjacker vehicle world cup quarterfinals begin today running of the bulls in spain and a passenger who may have sparked an inflight romance by simply changing your seats that story in about twenty minutes well as the trump administration readies a report on imported cars that could be the pretext for new tariffs economists and industry officials warn of soaring costs for car buyers a drop in overall sales and a net loss of jobs analysis from yahoo finance columnist rick newman rick explain americans by eight million imported cars every year in a twenty percent tariff on the value of the car just means the price the cost of the car would go up by twenty percents that's almost half of the entire car market in the united states so twenty five twenty five thousand dollar car would cost something like thirty one thousand with the new character we you know it's something like this were actually to happen we would see major increases across the board in imported cars and then i think because if such a big chunk of the market actually goes up in price i think even domestically produced cars would go up in price because the manufacturers will be able to raise the prices because the competition suddenly that much more expensive so you don't think that this would mean that suddenly we'd start buying more fords gm's and chrysler's no and in fact there's kind of a misnomer about what domestic car even is you know there are thousands of components in a car and there's no car there's not a single one car that is one hundred percent source and built in america so you know the most you can get is maybe seventy percent built in america you know the engines come from outside the united states the transmissions come from outside the united states and by the way virtually every foreign based automaker has plants in the united states in this has gotten to the point where vehicles such as the honda odyssey minivan are among the most american cars because of all the american content in those cars so and then and then you have general motors vehicles that are produced in canada you have ford vehicles that are produced in mexico and those are technically imports that would have to get that would get slapped with this new twenty percent tariff so this is really really complicated and it is certain to have all kinds of unintended consequences that would not be good for the economy or for the auto companies we're speaking with yahoo finance columnist rick newman about his piece entitled the car prices would soar under trump's latest tariff plan does manufacturing get a boost as is intended here by the trump administration no i mean it's hard to see how it doesn't mean general motors actually filed a comment with the commerce department on where which is maintaining a docket for the proposal and.

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