Mastodawn

Nonilex Jan 31, 2025

High Stakes for #Global Companies [& #US #consumers] in #Trump’s Latest #Tariff Threats

Manufacturers from #Asia, #Europe & elsewhere have poured billions into North American #SupplyChains that could be hit by new taxes on #Mexico, #Canada & #China.

Trump’s threat to impose a 25% tariff on all imports from Mexico & Canada as early as Saturday [TOMORROW] has hit companies like a freak ice storm in summer.

#economy #business #inflation #prices #USpol #geopolitics
https://www.nytimes.com/2025/01/31/business/trump-tariffs-china-mexico-canada.html?smid=nytcore-ios-share&referringSource=articleShare

Trump’s Latest Tariff Threats Could Hit Global Companies

Manufacturers from Asia, Europe and elsewhere have poured billions into North American supply chains that could be hit by new taxes on Mexico, Canada and China.

The New York Times

#Trump also said he would impose new 10% #tariffs on all imports from #China starting on Saturday.

So far, other Asian as well as European trading partners escaped the first round of presidential trade deadlines.

Yet they still have to brace for the unexpected fallout from tariffs slapped on #Mexico & #Canada.

#economy #business #inflation #prices #USpol #geopolitics

Nonilex Jan 31, 2025

Japan alone has >1,300 companies operating in #Mexico, with >½ of them in the #manufacturing sector. Some are #automotive suppliers who shifted production from #China during #Trump’s first term, when he started a trade war w/Beijing. In Nov, #Japan’s #Toyota said it would invest another $1.45B in its 2 Mexico plants.
More factories are on the way. In Oct, the #Taiwan #electronics giant #Foxconn announced plans to build a mega-factory in Mexico to produce #Nvidia chips.

#economy #business #USpol

Nonilex Jan 31, 2025

“It’s ironic, because there was such a response to the first #tariffs to restructure SupplyChains, & now you’re basically punishing the countries that benefited from that adjustment,” said Albert Park, chief economist at the Asian Development Bank.

At #Honda, an exec said there was a feeling of disbelief when #Trump warned of tariffs on goods not just from #Mexico, where Honda operates an auto plant in Celaya, but also from #Canada.

#economy #business #inflation #prices #USpol #geopolitics

Nonilex Jan 31, 2025

#Mexico is the largest exporter of #automotive parts to the #US. #Honda, for instance, produces around 200k vehicles in Mexico, & ships about 160k of those to the US. American carmakers like #GeneralMotors & #Ford Motor, which have major plants in Mexico & #Canada, would be similarly affected by #Trump’s #tariffs.

…Mexico is also home to other major manufacturers that make #aerospace equipment, #electronics, home #appliances & more. It is the largest exporter of #MedicalDevices to the US.

Nonilex Jan 31, 2025

…All of these businesses—whether from #Asia, #Europe or the #UnitedStates —would also have to contend with any added duties on components they import from #China, which remains the go-to source of many of the parts, tools & equipment.

[all of those costs, #tariffs, #taxes, #duties, #SupplyChain rerouting, shipping, relocation, etc, get passed on to the #consumer. #Prices for American consumers will go up.]

#Trump #economy #business #inflation #USpol #geopolitics

Nonilex Jan 31, 2025

For many companies, though, moving a major chunk of production to the #US is unrealistic, said Agathe Demarais, a snr policy fellow at the European Council for #ForeignRelations.

#Costs are too high. American #workers are not willing to accept the low #wages that initially drove companies to move to countries like #Mexico.

Mazda & Toyota have already struggled to ramp up production at their joint US factory because of a lack of workers.

#Trump #tariffs #economy #business #USpol #geopolitics

Nonilex Jan 31, 2025

These days, Demarais said, big #corporations may do their best to stay under the radar & wait out #Trump’s term. Opening a major production facility takes billions of dollars & a lot of time.

And #business leaders may be wary of investing in the #UnitedStates when #policy is so #unpredictable. Last week, for instance, Trump unexpectedly raised the possibility of doubling #taxes on foreign nationals & companies.

#tariffs #economy #inflation #prices #USpol #geopolitics

Nonilex Jan 31, 2025

More important, Demarais said, is that businesses recognize that #global #commerce is increasingly being organized around #TradeRoutes that reflect the growing rivalry between the #UnitedStates & #China — like the regional one that involves Mexico and Canada. [this is 1 reason why #Trump wants #Greenland, #ClimateChange is melting the ice & opening shipping lanes]

“That is a structural trend that will outlast Trump,” she said.

#tariffs #economy #inflation #prices #USpol #geopolitics

Nonilex Jan 31, 2025

Why Does #Greenland Interest #Trump? #ClimateChange Is Only Part of the Story

Arctic #ShippingRoutes & burgeoning #mining opportunities may be part of Greenland’s appeal.

[not that Trump would ever admit climate change is real, that’d hurt his #FossilFuel & #tech interests]
https://www.scientificamerican.com/article/climate-opportunities-in-greenland-may-be-part-of-trumps-interest/

Climate Opportunities in Greenland May Be Part of Trump’s Interest

Arctic shipping routes and burgeoning mining opportunities may be part of Greenland’s appeal to President-elect Donald Trump, but each comes with challenges as well

Scientific American

GeraintLlanfrancheta Jan 31, 2025

@Nonilex there is also Theiner tweet. There might be a real military angle against Chinese submarines on case of conflict. But this could also be solved with the ally Denmark. So really strange.

James H McLaren Jan 31, 2025

@Nonilex 100% Trump's interest in Greenland is because it looks so big on a map, so he thinks it's a lot more land than it really is. Same thing with his interest in taking over Canada.

Nonilex Jan 31, 2025

@JamesHMcLaren lol. He is obsessed with size.

Peter Brown Jan 31, 2025

@Nonilex I’m not really bothered why Trump wants Greenland. Especially since it’s behind a pay wall.
But the days of empire are over - you can’t just walk in and take somebody else’s land and call it yours. People live there; people who have said they don’t want to be Americans.

If the US want to negotiate over resources with the Greenlanders as equals, I’m sure Denmark and the rest of the EU will cooperate.

But I’m equally sure Denmark and the EU will not cooperate with a unilateral takeover.

Lazarou Monkey Terror 🚀💙🌈Jan 31, 2025

@Nonilex Europe and Asia, wave to Mexico and Canada

@Nonilex and in fact plants in #Mexico and #Canada are certified by the #US for #NatSec-level #tech to be produced there.

Starting with the #Iridium 9575A PTT, which is a #SatCom + #SatellitePhone handset!

Pretty shure the Pentagon loves to have cost overruns when equipping troops with modern comms...

And that's just the one example I could pull out of my butt without thinking about it...

Joe ❌👑Jan 31, 2025

@Nonilex We import $20 billion worth of fruits and vegetables from Mexico annually. A 25 percent tariff is $5 billion, dividing that by the 100 million or so households gives $50 per household, and that's before additional markups the grocery stores will add to preserve their profits.

Nonilex Jan 31, 2025

And due to global warming, we are getting more & more produce from Canada. Every time I buy a tomato it has a “grown in Canada” sticker.

Joe ❌👑Jan 31, 2025

@Nonilex Canadian tomatoes are mostly grown in greenhouses, I have read, so they can tolerate colder temperatures than you might expect.