Until there are supply chains in the USA prodicing the components Space X, car manufacturers need at low prices, Trump must give them exemptions or risk making the prices of US cars far more expensive just as consumers are suffering a cash credit due to record debts and interest rates, especially on credit cards.
He can give cash free grants to Ford, GM, Chrysler and other businesses to make the components in the USA to ensure the investments do not become a costly burden.
The money can be printed in the Treasury and distributed for free as with the Bradbury Pound.
Free cash grants means businesses can invest in new plants, machinery, workforrce without having to take out expensive bank loans and pay interest.
Free Treasury money wiill not add to the national debt.
Trump can issue an executive order for the Treasury to print money for tree and transfer it to a special account in the WH called for example "Tariff Offset Funds and Stimulus *TOFS" or "Tariff Cash Grants" (TACAGs).
From there the 100s of billions, trillions if that is needed to pay for the new manufacuring base and higher consumption, can be distributed to the various state departments to give quickly and unbureacucratically to companies etc with inspectors and high prison sentences to deter fraud.
From media
US automakers are making a final push to convince the Trump administration to reconsider tariffs set to take effect this week. The industry warns that levies on thousands of parts sourced abroad could severely damage the sector.
Ford Motor Co., General Motors Co., and Chrysler parent Stellantis NV are actively lobbying for exemptions on certain low-cost car components, according to sources familiar with the situation who spoke to Bloomberg. These automakers have met with officials from the White House, the Commerce Department, and the US Trade Representative's office to discuss the exclusions.
The tariffs, intended to bolster the US auto industry, will have widespread effects on American carmakers that rely on low-cost countries for the numerous parts that go into modern cars. Along with a 25% tariff on fully built vehicles, the administration plans to impose taxes on auto components starting April 3.
While Detroit’s automakers have expressed willingness to pay tariffs on complete cars and larger components like engines and transmissions, they are urging the administration to exempt certain parts. They argue that these levies would increase costs by billions of dollars, potentially leading to layoffs and profit warnings — outcomes contrary to Trump's goal of revitalizing the auto industry.
The industry is seeking relief on low-value parts, such as electrical wiring sheaths, which are labor-intensive and often produced in low-wage countries like Mexico. Automakers warn that the combined tariffs could lead to higher car prices, further depressing consumer demand in a market where the average car price is approaching $50,000.
The semiconductor shortage that disrupted the auto industry following the pandemic highlighted the vulnerabilities of the global supply chain for vehicle parts, said Jessica Caldwell, head of insights at Edmunds.com.
https://caliber.az/en/post/us-automakers-push-to-persuade-trump-on-tariff-exemptions-for-car-parts
No comments:
Post a Comment