Change that to highly likely - 99.99999% probability their profits increased.
And add to that power tools with many brands now under the same umbrella. Different colors, maybe different marketing strategies, but all the same ole boys at the top.
From Motor Trend …..
“With this much financial pressure, according to Bhalla, Chapter 11 bankruptcy protection was First Brands’ only option. It also reflects the broader implications of difficulties auto parts suppliers will potentially face thanks to increased expenses and confusion due to U.S. import tariffs. Many parts are manufactured outside the U.S., with a lot coming from China, Taiwan, Indonesia, India, and Eastern Europe.”
For those of us who slept through middle school history, 250 years ago, when we were all loyal British citizens, our then government also decided to impose on us a variety of unpopular tariffs and trade restrictions to reduce the deficit from the French & Indian wars. Let’s just say that the results were also very unpopular. 
Happy July 4th.
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Unlike the lies being spread to the uninformed - Tariffs are a TAX paid for by the importer that then passes it to the consumer. The country that we are imposing the Tariffs on does NOT pay one dime of the tariff. It’s 100% paid for in the US by US citizens and companies. Some companies have enough profit built into their products to absorb some of the Tariffs. Most don’t. And it’s not just finished products. Raw materials like steel (for building cars and washing machines). If raw material prices go up, then so does the finished product.
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Exactly. It has been expanded to include steel, copper and aluminum. Content in goods must detail the % of content in terms of weight and value. In addition, the country of smelt must be identified.
Place I work passes 100% of tariffs we pay onto our customers. The flow down continues until the logical end- the consumer.
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I’m still amazed that people don’t understand this. It’s simple to look up and discover yourself. But I’ve met people who still believe that the Tariffs on China are paid by China.
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Actually, customers pay for every business expense either directly or indirectly. It just may be more direct on a foreign car part but you still eventually pay for office remodeling or employee perks or failed policies.
Kinda why i just let my subscription lapse. At any rate the declaration has a whole list of other issues with king George besides tariffs but a good percentage of the population were fine with bowing to England and didn’t want to rock the boat. Many people liked having a king and didn’t believe people could rule themselves.
And many didn’t. It appears that so far, the populace ruling itself has worked. It’s messy but it works.
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Yep that’s what the civil war was largely about. The only self-government demonstration project. Had it failed, it would show the world that monarch rule Would prevsil
And yet we have people in high levels of our government lying to everyone it’s the opposite.
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There has been a 25% tariff on light trucks for 60 years, anyone upset about that?
There is a 2.5% tariff on imported cars. People boast that their Camry or Accord were assembled in the U.S. but not the reason for that to be.
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It clearly is no longer working.
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Yes, it was a ■■■■■■ tariff Chicken tax - Wikipedia described as what a 2003 Cato Institute study called the tariff “a policy in search of a rationale.”[4]
The only “benefit” to US consumers was to deny us access to high quality, low price, fuel efficient, light weight pickup trucks that were and remain perfect for many smaller tasks.
Like most ■■■■■■ tariffs, the immediate result was a search for loopholes. An example was the Subaru BRAT with 2 seats in the truck bed which classified it as a car until the loophole was closed.
Your opportunity to purchase a Subaru pick-up reoccurred in 2003 with the Baja.
The demand for a high-quality, fuel efficient, compact pick-up truck was a disappointment, the vehicle was cancelled after the 2006 model year.
Toyota, Honda and Nissan remain available, is there room in the U.S. market for more competition?
No one ever said Tariffs were bad all the time. The problem currently with tariffs is how they are being applied and by what authority. The US has negotiated in good faith with other countries trade deals which include tariffs. Now those trade deals are just thrown out without looking at the short and long term consequences. The second part of the problem is the way they’re being presented to the public. This administration has said on multiple occasions the tariffs we impose on other countries is paid for by that country. And unfortunately, there’s a large group of people who don’t have the ability or just too lazy to look it up and understand tariffs are a TAX paid for by US citizens. 3rd - The tariffs are being applied so broadly without any regard for consequences. The ones taking the biggest hit are the consumers and small businesses.
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Yes, although the Chicken Tax on light trucks remains in effect, eventually light trucks returned to the US market but only after “Tariff Engineering”, shifting production to non-tariff countries and a Supreme Court decision.
But my main premise remains, which is that whenever a tariff is imposed the primary results will be to increase the cost to the consumer and to find ways to avoid the tariff.
For example, production was moved to Turkey or other countries and then “Kit’s” were shipped to the US for “Assembly” at the port or at an assembly plant, clearly an inefficient, higher cost means of production.
Returning to the original question regarding potential auto parts shortages, as long as there’s a demand suppliers will continue to make the parts but will find ways to avoid the tariffs. i.e. If China get’s hit with a 100% tariff on master cylinders history shows that manufacturers will shift production to non-tariff countries or ship the parts to the US for “assembly” or find another way, limited only by lawyers imagination, to dodge the tariff.
OTOH if manufacturers are unable to make and sell the parts at an affordable price then it will no longer available here and your trusty old car becomes worthless.
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Turns out to be a big Wall Street story:
When First Brands, an auto-parts maker, filed for bankruptcy late last month, it was not the sort of event that would typically draw attention in the world's financial capitals.A midsize manufacturer of pumps, filters and other under-the-hood products sold at retailers like AutoZone and Walmart, the company had expanded in recent years and had, it would appear, simply grown too quickly.
But now, the company is at the center of swirling milieu on Wall Street and beyond over the loans that fueled its rise and the questionable accounting, some of its creditors say, that preceded the fall.
Some well-known firms in international finance have been swept up in the fallout from company’s collapse, in some combination of losses, finger-pointing and embarrassment at having missed the signs of danger. That group includes Jefferies, the New York investment bank that arranged much of First Brands’ financing; UBS, the Swiss bank that provided a big chunk of the money; and BlackRock, which funneled money to an intermediary that lent it to the company.
The total losses are expected to tally into the billions of dollars, according to Texas bankruptcy court filings and people involved in the negotiations over what comes next.
This week, a representative of one of the company’s creditors said in a court filing that as much as $2.3 billion of assets had “simply vanished.”…
Questions now turn to whether other auto-parts companies may also face troubles.
First Brands’ trouble “leads me to believe there are other suppliers that may also be at risk,” Erin Keating, executive analyst at ■■■ Automotive, said Friday.
https://archive.is/GsWAs if you can’t read the original. The censored word is the name ‘C o x’ - har!
With both this bankruptcy and tariffs, Chinese brake pads for your Toyota could cost more than $40.
Or pay more for higher quality products.
What’s the list price for the OEM pads?