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Author Topic: GM Falls Victim To Trump’s Trade War As Metal Prices Sink Profit  (Read 1187 times)

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Offline edpc

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GM Falls Victim To Trump’s Trade War As Metal Prices Sink Profit
« on: July 25, 2018, 06:54:13 pm »
General Motors Co. has become the highest-profile American company to fall victim to Donald Trump’s trade wars by cutting its profit forecast for this year on surging prices for steel and aluminum.

Adjusted earnings will drop to about $6 a share, down from a previous projection for as much as $6.50 a share, the Detroit-based company said Wednesday. Raw material costs probably will be a $1 billion headwind -- roughly double GM’s previous expectation. The carmaker’s shares are on course for their steepest one-day plunge in more than seven years.

The hit to GM’s profit underscores the risk that Donald Trump’s policies pose to automakers. While the U.S. president is moving to weaken fuel economy mandates, his tariffs on steel and aluminum -- and potentially on imported cars -- is undercutting what was shaping up to be a near-record year for an iconic American company that weeks ago was riding high on a $2.25 billion investment in its autonomous-driving unit.

https://www.bloomberg.com/amp/news/articles/2018-07-25/gm-cuts-profit-forecast-as-surging-metals-prices-boosts-costs
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Online Weird Tolkienish Figure

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Re: GM Falls Victim To Trump’s Trade War As Metal Prices Sink Profit
« Reply #1 on: July 25, 2018, 07:33:48 pm »
Winning!
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Offline Bigun

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Re: GM Falls Victim To Trump’s Trade War As Metal Prices Sink Profit
« Reply #2 on: July 25, 2018, 07:39:08 pm »
I'm sorry but I find it very difficult to conjure up any sympathy for GM after all the crap they got away with during the Obama years.
« Last Edit: July 25, 2018, 07:39:50 pm by Bigun »
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Offline thackney

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Re: GM Falls Victim To Trump’s Trade War As Metal Prices Sink Profit
« Reply #3 on: July 25, 2018, 07:41:25 pm »
Quote from: Bigun on July 25, 2018, 07:39:08 pm
I'm sorry but I find it very difficult to conjure up any sympathy for GM after all the crap they got away with during the Obama years.

It is not just GM.

Trump's steel, auto tariffs damage GM, Fiat Chrysler, Ford
https://www.usatoday.com/story/money/cars/2018/07/25/gm-ford-fiat-chrysler-trump-tariffs/827983002/

...German automakers are also at serious risk of losses, while Japanese automakers, including Toyota, have warned of the impact, as well....
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Offline Bigun

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Re: GM Falls Victim To Trump’s Trade War As Metal Prices Sink Profit
« Reply #4 on: July 25, 2018, 07:44:50 pm »
Quote from: thackney on July 25, 2018, 07:41:25 pm
It is not just GM.

Trump's steel, auto tariffs damage GM, Fiat Chrysler, Ford
https://www.usatoday.com/story/money/cars/2018/07/25/gm-ford-fiat-chrysler-trump-tariffs/827983002/

...German automakers are also at serious risk of losses, while Japanese automakers, including Toyota, have warned of the impact, as well....

And perhaps the president is using the tool he has at hand to actually achieve something.   https://www.reuters.com/article/us-usa-trade-eu-tariffs/eu-commissioner-suggests-broad-cuts-to-tariffs-with-u-s-idUSKBN1KF0JI
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"I wish it need not have happened in my time," said Frodo.

"So do I," said Gandalf, "and so do all who live to see such times. But that is not for them to decide. All we have to decide is what to do with the time that is given us."
- J. R. R. Tolkien

Offline thackney

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Re: GM Falls Victim To Trump’s Trade War As Metal Prices Sink Profit
« Reply #5 on: July 25, 2018, 07:46:17 pm »
Quote from: Bigun on July 25, 2018, 07:44:50 pm
And perhaps the president is using the tool he has at hand to actually achieve something.   https://www.reuters.com/article/us-usa-trade-eu-tariffs/eu-commissioner-suggests-broad-cuts-to-tariffs-with-u-s-idUSKBN1KF0JI

The European Union’s budget commissioner suggested on Wednesday the bloc would be ready to discuss mutual tariff cuts with the United States across a range of products, provided Washington lifts recent punitive tariffs first.

- - - - - -

So they won't even discuss the possibility until the US tariff is gone?
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Offline Bigun

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Re: GM Falls Victim To Trump’s Trade War As Metal Prices Sink Profit
« Reply #6 on: July 25, 2018, 07:58:56 pm »
Quote from: thackney on July 25, 2018, 07:46:17 pm
The European Union’s budget commissioner suggested on Wednesday the bloc would be ready to discuss mutual tariff cuts with the United States across a range of products, provided Washington lifts recent punitive tariffs first.

- - - - - -

So they won't even discuss the possibility until the US tariff is gone?

That's their opening position.   I suspect that it will rapidly change.
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"I wish it need not have happened in my time," said Frodo.

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- J. R. R. Tolkien

Offline Wingnut

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Re: GM Falls Victim To Trump’s Trade War As Metal Prices Sink Profit
« Reply #7 on: July 25, 2018, 08:59:02 pm »
Cool.  That makes the used cars on my lot worth more!

Winning!
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Offline GrouchoTex

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Re: GM Falls Victim To Trump’s Trade War As Metal Prices Sink Profit
« Reply #8 on: July 25, 2018, 09:37:48 pm »
It sounds like The US and it's EU trade partners are talking about free trade now.
That's a start.
Tariffs may make some winners and some losers, but it's the consumers who absorb the price in the end.
Government(s) shouldn't pick winners and losers in a capitalist society, which, we all are now.
Some countries more than others, of course.
Hopefully, this was all a ploy to bring everyone to the table.
The stock market doesn't like the tariffs, either.
News of negotiations going on sent the market upward today.
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Offline IsailedawayfromFR

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Re: GM Falls Victim To Trump’s Trade War As Metal Prices Sink Profit
« Reply #9 on: July 28, 2018, 03:17:34 pm »
Quote from: thackney on July 25, 2018, 07:46:17 pm
The European Union’s budget commissioner suggested on Wednesday the bloc would be ready to discuss mutual tariff cuts with the United States across a range of products, provided Washington lifts recent punitive tariffs first.

- - - - - -

So they won't even discuss the possibility until the US tariff is gone?
that is a non-starter
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Online DCPatriot

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Re: GM Falls Victim To Trump’s Trade War As Metal Prices Sink Profit
« Reply #10 on: July 28, 2018, 03:26:45 pm »
Quote from: The Ghost on July 25, 2018, 08:59:02 pm
Cool.  That makes the used cars on my lot worth more!

Winning!

Good for you!  You should ride that wave not to the shore, but all the way to where they rent the beach umbrellas!

U.S. steel furnaces are starting up as we type.

Offer prices that are significantly LOWER than the higher priced Chinese.  And they're off...
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