Now that Donald Trump is the President, and has to Vowed to charge a 35% import Tax on Foreign Production, and re Importation by American owned Companies, how will Ford deal with importing the 6.7 from the only plant in which it is produced.
I know that American Automotive Parts, and complete Vehicles, have been imported from Canada for as long as I can remember. Does this mean that the Ford MexiMotor Plant will need to be relocated North of the border?

 

Good question, With everything that seems good there is always a side effect.

 

I think you will find alot of what he said election fluff. We shall see.

 

There's gonna be a LOT of hits with the new border issues....
If you want to buy any new high dollar technology like TVs etc. You better get them in the next few months. When the new tariffs go into effect, you'll be paying a LOT more for those items..

 

As I have listened and determined in my own small brain, the border tax was to be on completed vehicles. I suspect if the border tax is implemented, there might be provisions for components shipped to the USA for inclusion in assemblies completed in the USA might not be taxed until the item is sold. Similar to a business buying parts to repair a vehicle does not pay sales tax until the repairs are complete and accepted/paid by the buyer.

 

Larry - There may be a whole new set of rules coming out of this administration... We just don't know how this is going to play out. One of his speeches seemed to indicate that any products made in Mexico that could be made here in the USA needs to either be made here or forced to pay stiff import duties..

 

Randy,

Trump has only talked about going after the car makers who plan on building a complete vehicle and then sell into the USA. I have not heard him, nor any of the other econ experts on TV associated with Trump, talk about components built outside USA being taxed. I believe there will be exceptions for these items such as the 6.7 engine since it will be installed in a completed vehicle built in the USA by USA workers.

I have not heard anything being said about the vehicles built in Canada as to a border tax on them. Ford and GM has a few plants in Ontario and maybe other provinces.

Time will tell. We might see higher prices on items but I also believe we will see wages go up also along with the SSA and other retirement pensions.

 

Sorry Larry....

Do a search on Donald Trump and NAFTA... As soon as NAFTA disappears, you may well see import tariffs on everything not made in the USA - and that includes Canada as well..

 

The bigger picture is, "something has to be done"; as a nation we cannot continue to run huge annual budget deficits year after year after year. We're borrowing the money to buy offshore foreign made products. The plans have long been in place to deindustrialize the US, it didn't happen overnight. We have to have a favorable balance of trade, there's no way around this.

So we have to make things other people want to buy, but we cannot compete with countries that pay their workers $10 a day, and yet have none of the regulatory BS we do in this country. Then they talk about "Trade wars". Right now we're in a "Trade Surrender", and have been practically the whole time I've been alive. The only reason it has "worked" so far, is the American dollar has been the worlds reserve currency.

 

It's all wait and see. I generally buy things as I need them and not to guess what is going to happen with pricing in the future. Some of what Trump says he will do is just a threat to keep companies from moving manufacturing out of the US or expanding their operations in foreign countries.

 

Another part of the equation: the administration is supposed to lower corporate taxes from about 38% to 15%.

 

Sometimes peoples heart might be in the right place, but they don't know how business works, large or small. Who do you think actually pays corporate taxes? Hint: it ain't corporations!

The congress got a bug up their *** about rich folks and their yachts a few years back. The press dutifully carried their water on this, and congress passed a "luxury tax" on yachts. Stick it to the rich, right?

Well... OK.. but what happened in the Real world, it turns out, that thousands and thousands of people (were) employed in the shipbuilding business. They weren't rich, but they worked for rich people designing, building, servicing and maintaining those yachts. Providing parts, materials, from spar varnish and brass, you name it. And businesses and employees that provides the raw materials for those businesses also made a living. All those folks had careers, middle class lives for themselves in their families, and all because those "rich" folks had yachts. So then as a result of the legislation, the rich folks stopped buying so many yachts. No surprise there.

All those jobs went away... forever.. and the local tax revenue.. Way to go guys! You really "stuck it to the rich" huh?

 

Without getting into polytics, often what happens with these things is it is a "net import" tax.


Ford builds many vehicles in the USA, and imports them to Mexico, if tariffs were put in place, Ford should be able to provide the value of what they import to Mexico, vs what they export, and as long as it is favourable to the US, I couldn't imagine tariffs being charged.

 

Sounds about right.... The problem with taxing a luxury item is that, it is an optional item and I don't really need it to live so I could put my money elsewhere. (assuming I was actually rich, which I am not)

 

Well said Tedster9.