Tariffs- how do they affect Broncos? Not political please

[bassist]

I just got a spam email from a financial planner. With everything going on, this time I decided to open it. He had this interesting line:

"Short-term volatility is the price we pay for long-term reward or as The Shirelles put it, “Mama said there’d be days like this.”

I, for one, will "stay the course." I'd buy into this bear market--if I had extra cash. But I just wrote checks for my taxes. Groan.....At least they're done.

It’s too late to act - at this point you almost have to ride it out, and if you have a lot of extra cash relative to what you have in stocks, decide when to start buying more to dollar cost average your way out of the hole.

Anyone who owns treasuries is going to be sitting pretty for a bit.

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[BeachTiger]

Still makes no sense as the original assertion was there would be price increases even if tariffs did not impact parts or assembly. I get that prices always go up due to normal inflation but that’s a different issue from tariffs.

Because demand for US made cars will increase. It's a substitution effect. The price of US strawberries will naturally rise to the price of imported Mexican strawberries, and US apples will also rise in price as consumers switch to lower cost substitutes.

 

[jtgensler]

my $0.02 - costs will increase even if all the parts were made in the US.

for my job, I purchase steel, stainless & aluminum for a large fabrication shop.
In the millions annually.
We saw this in 2018 with tariffs - if the foreign made materials are forced to a higher price, the domestic made materials also increase.
Think of it like this - you sell gasoline & across the street is another gas station.
A law says that your neighbor must increase his price from $3.00 to $3.50
Are you going to keep your price at $3? You could - but most businesses would raise their price to something like $3.45 - they're still the clearly "cheaper" option, but they're making an extra $0.45/gallon because they don't have a competitive market.

Domestic steel & aluminum will do the same & we're already seeing it reflected in the raw material prices. I've already had to start raising my prices on the products we manufacture for an OEM. Which means they'll in turn raise their prices. & the end user will end up paying a higher cost.

 

[BroncoT]

Because demand for US made cars will increase. It's a substitution effect. The price of US strawberries will naturally rise to the price of imported Mexican strawberries, and US apples will also rise in price as consumers switch to lower cost substitutes.

this is a total pipe dream. It is not going to happen, at least not without a massive recession. This isn’t a political statement, it is why the markets tanked.

 

[zoober]

my $0.02 - costs will increase even if all the parts were made in the US.

for my job, I purchase steel, stainless & aluminum for a large fabrication shop.
In the millions annually.
We saw this in 2018 with tariffs - if the foreign made materials are forced to a higher price, the domestic made materials also increase.
Think of it like this - you sell gasoline & across the street is another gas station.
A law says that your neighbor must increase his price from $3.00 to $3.50
Are you going to keep your price at $3? You could - but most businesses would raise their price to something like $3.45 - they're still the clearly "cheaper" option, but they're making an extra $0.45/gallon because they don't have a competitive market.

Domestic steel & aluminum will do the same & we're already seeing it reflected in the raw material prices. I've already had to start raising my prices on the products we manufacture for an OEM. Which means they'll in turn raise their prices. & the end user will end up paying a higher cost.

Not seeing any of this (yet).
I quote jobs daily for our medical device company. We haven't increased any of our pricing as of now. Perhaps it's because we purchase such large quantities of raw materials and have a large inventory of stainless and titanium (millions in existing between ourselves and sister companies).
If anything, our quoting has increased in the last week, as have orders placed. Medical already has a very large set of FDA import regulations in place (depending on device class).

All devices are lot controlled and marked with a UDI (Unique Device Identifier), so foreign counterfeits are extremely rare.

 

[Rydfree]

Our plant is finally getting new work and hiring again after the huge layoffs from Jan '23 into '24. We just got notified of a 4% cost of living increase in pay as of this week as well . Sorry if that makes your next purchase a bit more expensive

 

[jtgensler]

Not seeing any of this (yet).
I quote jobs daily for our medical device company. We haven't increased any of our pricing as of now. Perhaps it's because we purchase such large quantities of raw materials and have a large inventory of stainless and titanium (millions in existing between ourselves and sister companies).
If anything, our quoting has increased in the last week, as have orders placed. Medical already has a very large set of FDA import regulations in place (depending on device class).

All devices are lot controlled and marked with a UDI (Unique Device Identifier), so foreign counterfeits are extremely rare.

I can't speak for the medical industry.
We're in Natural gas, Locomotives & coal mining.
And I can absolutely tell you that our costs have increased in the past 4 weeks.

 

[DaddyLoafn]

I think the focus RS's that had all the head gasket problems where made in Spain

yeah they put the wrong one on when assembling them

 

[Rspayde]

It is a free market with external competition suppressed if you think US producers won't raise their prices to produce higher profits you are dreaming. All they have to do is keep prices lower than the import plus the trade deficit offset rates and bingo bango bongo our dollar still doesn't go as far as it went yesterday.

Yes there is still competition between US companies but the pool just got a lot smaller.

 

[Mikey1287]

Wait until the Nasdaq gets to around 14.5
Then buy.

It’s too late to act - at this point you almost have to ride it out, and if you have a lot of extra cash relative to what you have in stocks, decide when to start buying more to dollar cost average your way out of the hole.

Anyone who owns treasuries is going to be sitting pretty for a bit.

 

[jtgensler]

It is a free market with external competition suppressed if you think US producers won't raise their prices to produce higher profits you are dreaming. All they have to do is keep prices lower than the import plus the trade deficit offset rates and bingo bango bongo our dollar still doesn't go as far as it went yesterday.

Yes there is still competition between US companies but the pool just got a lot smaller.

The US domestic steel market has like 4 main companies.
US Steel, Nucor, SSAB & Cleveland Cliffs are the players.
There's not much competition.

 

[Roger123]

Ford offering company pricing indicates they fear an inventory glut In my opinion.

In my opinion that could be totally true but the conspiracy theorist in me says it's more about marketing.

Everyone is freaking about tariffs and that the price of cars is going to double, triple, quadruple in the next 10 minutes therefore you need to buy one NOW. Hey, look at us we're giving you the same sweet heart deal we give our employees, buy now from us and avoid the dramatic price increases.

Just my take on it especially as what I'm reading here on this site is that employee pricing may or not even be better than what they were offering before. But now they can more easily market to the scared and we all know when you're scared you usually do stupid things like buy a new car you can't really afford to avoid a price increase that may or not even happen.

 

[Draughon]

Here's a short (8min) story on YouTube by WSJ on what parts are foreign made on an F-150.

Not directly a Bronco but this should be a decent corollary.

 

[MisterGreen]

When I spoke to the dealer, they told me that Ford has enough inventory on hand to get them through 90 days so, nothing built in that time would be affected. After that is when you would expect to see prices change.

 

[old goat]

Webasto makes the hard tops in Plymouth, MI. Just sayin'.

SO all the materials they use to make the tops are also made here in the US ??? , I don't think so !
the Broncos are made in the US but 60% of the parts are imported.

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