Chris Davis’ Post

As non-Cinese automobiles fail to sell in China, automakers like Stellantis and many others are adopting an attitude of “if you can't beat them, join them,” leveraging manufacturing facilities in China to build vehicles, which is a big problem for automakers, as the US and other countries impose tariffs. US tariffs may increase inflation and the cost of many products, limiting the buying power of Americans due to the high inflation and interest rates. As automobile sales slow, production slows, jobs will likely be lost, hurting Americans, our economies, and tax bases. As tax revenues go down and costs go up, governments may increase taxes to keep up with spending, and the situation may worsen as our buying power is further diminished. Lower-priced products, including automobiles, are needed. Innovation that creates excellent and competitive products and jobs is needed. Reduced government spending and balanced budgets are needed, likely including reducing or eliminating subsidies. Reduced inflation and interest rates are needed for a thriving economy. I'm not convinced tariffs are needed. Tariffs may result in long-term consequences that worsen US conditions.