Donald Trump’s idiotic tariffs are nothing but a tax on consumers here in the United States. His trade stances haven’t only put the U.S. at odds with our trading partners, but they’ve put him at odds with American companies too. Take Ford Motor Company for example. A little over a week ago they announced that they would not be selling the Chinese-made Focus Active here because Trump’s tariffs have taken all the profit out of it. Now Trump is trying to pressure the company to build the cars here tariff free…but Ford refuses to do that.
“Ford has abruptly killed a plan to sell a Chinese-made small vehicle in the U.S. because of the prospect of higher U.S. Tariffs.” CNBC. This is just the beginning. This car can now be BUILT IN THE U.S.A. and Ford will pay no tariffs!
— Donald J. Trump (@realDonaldTrump) September 9, 2018
The New York Times reported today that Ford quickly responded to Trump telling him
‘It would not be profitable to build the Focus Active in the U.S. given an expected annual sales volume of fewer than 50,000 units and its competitive segment.’
Ford also added that it would be expanding its lineup in the U.S. by adding trucks, sport utility vehicles, hybrids and electric models and that it would like to get its profit margin in North America to 10 percent. Unfortunately, it wouldn’t be profitable enough for the company to fit out a factory to build just 50,000 cars per year, so Trump is out of luck there.
You would think that since Trump always brags about being a businessman he would understand how profit margins work…but sadly that doesn’t seem to be the case. His lack of basic knowledge about how tariffs work is astounding. The ones he’s already put in place have done nothing but hurt U.S. consumers and the companies that operate here. His escalating problems with China over tariffs are only going to get worse. We’re bordering on a trade war with them right now and that’s bad news for everyone involved.
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