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Only Teslas exempt from new auto tariffs thanks to 85% domestic content rule

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Re: Only Teslas exempt from new auto tariffs thanks to 85% domestic content rule

#61

Post by makeitdouble »

socalgal2 wrote: post #34

I don't know if it's the same people but many of the comments here seem the opposite of the comments on EUs rules where people say they're targeting specific companies and comments say "no, the rules are such than all companies over a certain size are covered". If the rule is 85% domestic than any company can do it. I'm not saying the tariffs are good. Only that their point is to get things made domesticly

When you say EU rules, I guess it's the GDPR part on having the user data stay in the EU?

Otherwise I don't see any other rule that would ask the foreign company to move most of it's workforce and production capacity.

Re: Only Teslas exempt from new auto tariffs thanks to 85% domestic content rule

#62

Post by [deleted] »

legitster wrote: post #53
rectang wrote: post #7

I have zero faith in "free market" ideologues, because what we actually get when they gain power is just favoritism for "free market" ideologues.

Trump was never actually a "free market" idealogue. And the GOP officially dropped any mentions of it from their party platform a few years ago. If anything, they are doing exactly what they promised. They were against globalism and elites and international agreements and governance and they are being true to their words.

[deleted]

Re: Only Teslas exempt from new auto tariffs thanks to 85% domestic content rule

#64

Post by Jtsummers »

asdsadasdasd123 wrote: post #42

I dont understand what this article means. Tesla's aren't imported so why would there be tariffs on them. The source link leads nowhere.

The tariffs cover parts as well as whole vehicles. The thing announced here is that they'll have a rebate program if the car is 85% manufactured in the US, and the rebate will be in effect for 2 years. So you still pay the tariff on parts, but you get some or all the money back if you meet that threshold. The idea being that it gives the company two years to move their parts manufacturing or sources. But the threshold is so high that only Tesla gets to enjoy the rebate, not any other company.

Re: Only Teslas exempt from new auto tariffs thanks to 85% domestic content rule

#65

Post by metalman »

JumpCrisscross wrote: post #15
throwaway48476 wrote: post #11

Earlier quoted context omitted.

It is but it always has been. I would also appreciate if the big 3 American car companies had 85% American content.

> would also appreciate if the big 3 American car companies had 85% American content Versus 80%? Those five percentage points are worth a double-digit tariff.

and then there is the other side of the 14.9% coin, which will be fought over by Canada(read ontario), Mexico, China, and the rest when it comes parts and cars made in Canada and Mexico, that is going to be tricky, as both countrys have historicaly bought a lot of US cars and other stuff, but will now be in no possition to also play along with the anti china stance in the US and tarrifs, and all the other issues at the borders.......geoplotical has more meaning now.

Re: Only Teslas exempt from new auto tariffs thanks to 85% domestic content rule

#66

Post by rco8786 »

socalgal2 wrote: post #34

I don't know if it's the same people but many of the comments here seem the opposite of the comments on EUs rules where people say they're targeting specific companies and comments say "no, the rules are such than all companies over a certain size are covered". If the rule is 85% domestic than any company can do it. I'm not saying the tariffs are good. Only that their point is to get things made domesticly

Just a coincidence that the only company that currently fits the criteria is Tesla then.

Everyone else can start rearranging their supply chains and building new factories to comply. Easy peasy right? Be up and running in a few weeks, at most, right?

Re: Only Teslas exempt from new auto tariffs thanks to 85% domestic content rule

#67

Post by nostromo »

gkoberger wrote: post #59
socalgal2 wrote: post #34

I don't know if it's the same people but many of the comments here seem the opposite of the comments on EUs rules where people say they're targeting specific companies and comments say "no, the rules are such than all companies over a certain size are covered". If the rule is 85% domestic than any company can do it. I'm not saying the tariffs are good. Only that their point is to get things made domesticly

Why 85% and not 80%? It’s an arbitrary cutoff that happens to benefit Elon. Ford will quickly get to 85%, but you can’t deny this is yet again a move that is touted as “pro-America” yet somehow mainly benefits Musk (or Trump or someone in their orbit).

Three Tesla models meet the 85% threshold and three do not.

If Tesla was writing these rules, surely they'd have chosen the 80% threshold instead.

I doubt they see the Ford Mustang as being in their same target market, and wouldn't be a reason to increase the standard.

Re: Only Teslas exempt from new auto tariffs thanks to 85% domestic content rule

#69

Post by kasey_junk »

throwaway48476 wrote: post #58
JumpCrisscross wrote: post #15

Earlier quoted context omitted.

> would also appreciate if the big 3 American car companies had 85% American content Versus 80%? Those five percentage points are worth a double-digit tariff.

5 percentage points should be easy enough for them to change then by moving a few supply chains.

So make it 90% and don’t give Tesla the special treatment.

Re: Only Teslas exempt from new auto tariffs thanks to 85% domestic content rule

#70

Post by guywithahat »

I wonder how much their lack of union plays into this. The auto factories fled Flint/Detroit due to the UAW basically an attempt to limit the scope of strikes and violence from the UAW. Tesla doesn't have to worry about unions (at least yet), and so they have very centralized factories where an enormous amount of work is done. Probably makes it easier to do everything in the US if you can do it all in one building
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