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Discussion Starter #1
If you haven't purchased an Accord yet, you may want to do so soon before Trump decides to put in place new tariffs on steel and aluminum imports because the tariffs will increase car prices.
Honda Motor Co Ltd said
in a statement that "imprudent tariffs imposed on imported steel and aluminum would raise prices on both domestic and imported products, thus causing an unnecessary financial burden on our customers."

Cars aren't exactly cheap right now, though some like the Accord are more obtainable than others. But a price increase could put a dent in new car sales and people may look at the used cart market instead.
 

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Makes you wonder whether or not this was all said and done just to raise stocks in the metal industry. It's already been suggested that the tariff wont be implemented if a "fair" NAFTA agreement is reached. I think the last think automakers need, is increased production costs.
 

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Makes you wonder whether or not this was all said and done just to raise stocks in the metal industry. It's already been suggested that the tariff wont be implemented if a "fair" NAFTA agreement is reached. I think the last think automakers need, is increased production costs.
You bet and already we're seeing the result of higher costs of production with slower developments and cars that aren't that advanced. So much the case that i have seen people flock to older cars.
 

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Vehicular technology is still improving by leaps and bounds, especially when it comes to safety and fuel economy. From what I've seen, people are flocking to older utility models that can handle the odd dirt trail instead of the average used sedan or SUV.
But anything like a tariff increase will definitely affect various industries and not just the auto one. How much of an increase still remains to be seen, though with how much opposition this is getting I doubt it'll actually come to fruition.
 

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Looks like Canada and Mexico may be exempt from the upcoming tariffs...at least for now. That is however assuming that NAFTA talks are successful. Pretty sure that Canada is the biggest supplier of steel and aluminium to the U.S and there are rumours of retaliation if the duties go through.
 

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Looks like Canada and Mexico may be exempt from the upcoming tariffs...at least for now. That is however assuming that NAFTA talks are successful. Pretty sure that Canada is the biggest supplier of steel and aluminium to the U.S and there are rumours of retaliation if the duties go through.
Last i heard China was another great source for metal which can really steer what the U.S. does and it doesn't help that both China and Canada have good relations. Even worse is that a recession is expected any time. For that reason I have seen people buying used cars with cash. Getting into debt now is the worst idea for the average person.
 

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So it looks like the tariffcs will go into effect in 15 days, not good news for the auto industry. Looks like Canada has been exempted along with Mexico and I really think Trump realizes just how much this could hurt the economy in the U.S. Guess we should expect car prices to begin rising next month...
 

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Discussion Starter #8
Companies may not even wait for the tariff to go into effect in 50 days, marking up prices already in anticipation of higher production costs. Well, this is going to be an interesting year for the auto industry and pretty much anything else that uses steel and aluminium in some capacity. Even U.S. based Ford was against this...
 

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15 not 50. Its only going to be a matter of weeks until we see what sort of impact this has on the costs and availability of new cars. Not sure if auto makers will be able to manufacture new cars on the same scale if it really does cost that much more to produce them.
 

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Discussion Starter #10
We don't really know how much of a cost increase this would translate into for the manufacturers, though even $100 more is a lot if you take into account the sheer amount of cars they produce. There's also the fear that other countries will slap the States with their own tariffs. Just doesn't look that great for manufacturers with factories inside the States.
 

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All manufacturers make material purchases on contracts - not day to day. Increased material costs will happen over time. Any immediate product price increases are corporate greed - think about gasoline prices.
 
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