4 ms·
Seems like the tariffs are working as intended
by ginko 2y ago
Seems like the tariffs are working as intended
- constantcrying 2y agoI don't think that there are any doubts that tariffs work. But I don't see a scenario where this isn't a very significant downside for EU car manufacturers.
- brohoolio 2y agoCan you explain what you mean? I fail to see the downside for EU manufacturers.
- constantcrying 2y agoChina is VWs biggest market. BMW, Renault, Mercedes all have massive interests in China, which very quickly end the second China retaliates on the tariffs. Currently EU manufacturers are competing in China. If a trade war happens that will end and both sides will retreat to their own respective regions, currently that is clearly worse for EU car makers. All German car makers oppose these tarrifs for exactly those reasons.
- wraptile 2y ago> China is VWs biggest market Yes but for how long? China was very successful at baiting Tesla and raising their own EV industry. If anything it's proving that businesses can't rely on Chinese markets even without a trade war.
- constantcrying 2y agoTesla is failing because their products are falling behind every day. >Yes but for how long Depends on the EU regulations. If they don't want successful EU companies, not for very long.
- wraptile 2y agoI think it's hard to say that Tesla products are at fault here when Tesla has been clearly setup to grow Chinese EV industry and now can't compete due to Chinese regulations, subsidies and a massive campaign to promote Chinese cars. Just tune in to tiktok - it's very blatant. All I'm saying is that perception of Chinese EVs is very inflated compared to objective reality. There are plenty of opportunities left in the automobile market.
- Archelaos 2y agoI think the OP meant "as intented by the US", ie. car manufacturers moving their production for the US market out of China.
- zihotki 2y agoGerman automakers oppose it because they will be hit the hardest. They focus on premium market. They don't have much competition in that market especially for conventional cars. And they don't care much what will happen later and with others. But the other side of the wall is that all other low and mid price segment manufacturers (Renault, Stellantis, etc.) welcome the tariffs. Because that's where the automakers from China compete (unfairly).
- constantcrying 2y ago>They focus on premium market. Are you kidding? Do you know who VW is?
- ulfw 2y agoMajority of VWs sold in China are made in China
- _trampeltier 2y agoSome part of the inflation now is also because of the import new import tariffs (my country first). Countrys with new high import tariffs have a higher inflation rate.
- 4gotunameagain 2y agoyeap. US dictated decoupling and deglobalisation which will lead to increased geopolitical tensions and maybe WWIII. Fun. This is what you get when there is a gargantuan military industrial "defence" complex who was formed during the cold war and works best in the presence of an enemy. The true enemy seems to be the average citizen in the long run of course.
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- GordonS 2y agoI agree with everything here, though I'd add that part of the "success" of the military industrial complex is distorting how the average citizen thinks about far-flung countries it wants to be perceived as "enemies" - the anti-Chinese sentiment and misinformation, even on HN, in is simply staggering. The current world feels like a real-life incarnation of 1984.