March 27, 2025 • 11 mins
Chris digs into Trump’s 25% tariffs on all auto imports starting April 3, 2025—no exemptions for Mexico or Canada. He warns prices will rise across all car brands, even U.S.-made ones, and hopes for global tariff cuts. Free trade’s the goal! www.watchdogonwallstreet.com
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact it we'll have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski.
Speaker 3 (00:16):
Oh it's own.
Speaker 2 (00:17):
The trumpe tariffs are on autos YEP, twenty five percent
tariffs on all all automobile imports to the United States.
Speaker 3 (00:31):
All these cars are cars that are not made in
the United States. Basically is discussion yesterday spelled any sort
of exemption for countries such as Canada or Mexico. We
get an enormous amount that is the most cars coming
(00:52):
into the United States, and we think, oh, it's Japan. No,
it's Mexico. A lot of plants south of the border
moving cars in the United States. These tariffs will start
on April third. Okay, These tariffs will cover finished automobiles
and automotive parts. It will be on top of existing
(01:18):
tariffs including two point five percent that is already imposed
by the United States, as well as the uh the
chicken the chicken tariff. This goes all the way back
to the nineteen sixties. We got into a dispute with
Europe over chicken. And that's why twenty five is already
a twenty five percent tariff on light trucks coming into
(01:41):
the United States. Okay, obviously, Canada, the Prime Minister there,
Mark Carney called the tariffs a direct attack on Canadian workers.
It's a violation European unions. Like, what are we going
to do? Let me, uh, let me kind of put
this way. Certain automobile manufacturers they make cars here in
(02:06):
the United States. I got some you know, people discussing
sending me questions emails. Well, does that mean that let's
say the BMW X five, which is made here in
the United States, is that going to make their price
is going to stay the same because it's made here. No. No,
these are global companies. These are global companies, and what
(02:31):
they're going to do is they're going to price these uh,
these tariffs, which are taxes into all of their vehicles.
So no, no, no, no, Just because let's say BMW
makes their SUVs here, I know, Mercedes makes a bunch
of their SUVs here, Hyundai makes cars here, Toyota makes
(02:51):
cars here, Volkswagen makes cars here. It doesn't matter. Okay,
it doesn't matter. Uh, these you know, they all of
a sudden can't say, Okay, we're going to make our
you know, our cars coming from Germany. We're going to
just increase their price and not increase everything else. It's
going to be spread across the entire vehicle lineup. Now
(03:14):
you're taking a look at stocks from all the automakers
basically falling here in the United States as well. People say,
why would that be the case? The same thing holds
too for our companies. We make a lot of cars
over in Europe. If you go to Europe, you'd actually
be amazed because you you will see actually more American cars, cars,
(03:41):
not SUVs. I mean you're in Italy. You're not seeing
a big American SUVs. It just doesn't you know, few
and far between over there. But you do see a
lot of small Fords that they don't see here in
the United States. They're made for European and some based
upon the fact that they're paying six seven dollars a
(04:03):
gallon and gasoline, smaller, smaller roads, a myriad of different things. Again,
they're going to get hit with tariffs even though they're
made there. If you don't think that these other countries
are going to try to do something. The big hope,
(04:24):
quite frankly here is that tariffs, tariffs are lowered across
the board. But we've seen some We've seen some movement
as of late in regards to India and lowering tariffs.
Yesterday there was an announcement from Vietnam cutting tariffs on
American cars, liquefied natural gas, approving Elon Musk's starlink services. Again,
(04:50):
all steps in the right direction. Do I know what's
going to happen or how this is going to turn out,
or how this is going to work out, and be
honest with you, I don't. I I don't. I don't know.
As I said, the hope is is that we see
(05:11):
tariffs come down everywhere. I am a you always have
been a free trader. Trade to me, business to me
is the best, best kind of foreign policy. It's the
best kind of foreign policy. Again, I'm an Adam Smith capitalist.
Two parties sitting down together, you know, both have wants, needs,
(05:34):
They do business with one another, they walk away happy.
You know that that's a good thing. And you know,
I think that would solve many problems in the world.
Quite frankly, with the more business that's being done again
being an insular economy is not the way to go.
And you know, I don't think that we're heading in
that direction. I don't. As far as making the United
(05:58):
States this massive manufacturing powerhouse again, I just don't see it. Okay,
I don't see it. We'd like to see more plants
being built here in the United states'd like to see more.
It happens, naturally. One of the reasons why you've seen
(06:19):
recently Hyundai and their plant just opened up that was
announced back in twenty nineteen. Reason why you saw BMW,
seen these other companies open up plants here in the
United States is because we provided an environment for them
that is better than the alternative which is back there
in Germany. Our energy costs are cheaper again, you know,
(06:41):
the cars that they're making quite frankly for the American market.
For the most Americans like their big cars, they like
their SUVs. The free market will find a way. I
don't know. I don't know the ins and outs of
the tariffs from each individual country when it comes to
(07:01):
our cars that are going in there. Again, I understand reciprocal.
I understand it being even when tariffs turn into economic engineering,
that's that's when I have a bit of a problem.
Now again, do I believe Do I believe that we
(07:26):
should be doing trade in business where people have indentured
servitude and essentially slavery. No, no, I don't. But cheaper
labor has always always played a part in the movement
of jobs, and it's also helped to lift countries up,
(07:48):
even here where you know, the United States, the colonies
you think we were, the colonies of the UK, we
were cheaper labor over here for many products in certain
industries that used to be you know, we're huge and
great Britain moved over here, then they move elsewhere. It's
it's part of what happens. It's part of the the
(08:09):
ebb and flow of things. And that's that quite frankly,
is not going to change. What I have a again,
always had a problem with is when people in you
get people in Washington, d C. Or people in Beijing,
or people in Brussels, whatever it may be, think that
they can tinker around and think that they can manage
(08:30):
an economy. You can't manage an economy. It's unmanageable. It's
like trying to manage mother nature. Can't do it. I
can't manage mother nature. You deal with it. The terrain
is what the terrain is. You know, for example, today
you get these useful idiots Jared Bernstein, Oh my god. Yeah,
Jared Bernstein was the one didn't understand how the US
(08:52):
bond market worked, and he was Biden's economic advisor. He
and Dean Baker took to the page of the Wall
Street Journal today tariffs will bring a boom to American manufacturing.
He writes this whole thing, you know, going against tariffs
and how they're going to work. You know what his
suggestion was, I'm not making this up. He said, what
will really help America is more subsidized loans, tax credits,
(09:16):
and grants for green shit. Yeah, he actually put this.
And again, you know, honestly, Wall Street Journal, I mean,
come on, this is just stupid. You don't need to
print something this moronic for crying out loud, just because
it's from Jared Bernstein actually suggesting that's what we need
to do. What the country needs to do is to
(09:38):
subsidize more green jobs, more windmills, more solar panels. Really,
he really can't get much dumber than that. Anyway, Anyway,
we're going to see what the fall it's going to
be next week again, big week, Big week. When it
comes to tariffs, we are, without it, without a doubt,
(10:01):
we are in a better better position than these countries,
and we are putting tariffs on. Trump also laid down
the law said, hey, if Canada and the European Union
you're going to start getting together here to work together
to hurt the United States, Well, he's going to push
(10:21):
back even further than that. We don't want. We don't
need to see that again. Do I do? I think
that everything's on the table. Do I think that the
lawfair that takes place in the European Union against our
technology companies, is that going to be a part of
this as well? Yeah? I do, Yeah, I do, and
(10:45):
quite Franklin, I'm hopeful. I'm hopeful within the next several
weeks there'll be a bit of a meeting of the
minds and everyone can walk away happy because and essentially,
that's what you want. That's what the best deals that
are made. It's not when you get over on someone
(11:07):
now because guess that that comes back to bite you
later on mens it causes bad bloyd that that that
hurts business. It's short term gratification rather than long term
gain gain the best. The best deals that are done
are the deals that are done. We're both both sides
are happy. Watchdog on Wall street dot Com h
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact it we'll have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski.
Speaker 3 (00:16):
Oh it's own.
Speaker 2 (00:17):
The trumpe tariffs are on autos YEP, twenty five percent
tariffs on all all automobile imports to the United States.
Speaker 3 (00:31):
All these cars are cars that are not made in
the United States. Basically is discussion yesterday spelled any sort
of exemption for countries such as Canada or Mexico. We
get an enormous amount that is the most cars coming
(00:52):
into the United States, and we think, oh, it's Japan. No,
it's Mexico. A lot of plants south of the border
moving cars in the United States. These tariffs will start
on April third. Okay, These tariffs will cover finished automobiles
and automotive parts. It will be on top of existing
(01:18):
tariffs including two point five percent that is already imposed
by the United States, as well as the uh the
chicken the chicken tariff. This goes all the way back
to the nineteen sixties. We got into a dispute with
Europe over chicken. And that's why twenty five is already
a twenty five percent tariff on light trucks coming into
(01:41):
the United States. Okay, obviously, Canada, the Prime Minister there,
Mark Carney called the tariffs a direct attack on Canadian workers.
It's a violation European unions. Like, what are we going
to do? Let me, uh, let me kind of put
this way. Certain automobile manufacturers they make cars here in
(02:06):
the United States. I got some you know, people discussing
sending me questions emails. Well, does that mean that let's
say the BMW X five, which is made here in
the United States, is that going to make their price
is going to stay the same because it's made here. No. No,
these are global companies. These are global companies, and what
(02:31):
they're going to do is they're going to price these uh,
these tariffs, which are taxes into all of their vehicles.
So no, no, no, no, Just because let's say BMW
makes their SUVs here, I know, Mercedes makes a bunch
of their SUVs here, Hyundai makes cars here, Toyota makes
(02:51):
cars here, Volkswagen makes cars here. It doesn't matter. Okay,
it doesn't matter. Uh, these you know, they all of
a sudden can't say, Okay, we're going to make our
you know, our cars coming from Germany. We're going to
just increase their price and not increase everything else. It's
going to be spread across the entire vehicle lineup. Now
(03:14):
you're taking a look at stocks from all the automakers
basically falling here in the United States as well. People say,
why would that be the case? The same thing holds
too for our companies. We make a lot of cars
over in Europe. If you go to Europe, you'd actually
be amazed because you you will see actually more American cars, cars,
(03:41):
not SUVs. I mean you're in Italy. You're not seeing
a big American SUVs. It just doesn't you know, few
and far between over there. But you do see a
lot of small Fords that they don't see here in
the United States. They're made for European and some based
upon the fact that they're paying six seven dollars a
(04:03):
gallon and gasoline, smaller, smaller roads, a myriad of different things. Again,
they're going to get hit with tariffs even though they're
made there. If you don't think that these other countries
are going to try to do something. The big hope,
(04:24):
quite frankly here is that tariffs, tariffs are lowered across
the board. But we've seen some We've seen some movement
as of late in regards to India and lowering tariffs.
Yesterday there was an announcement from Vietnam cutting tariffs on
American cars, liquefied natural gas, approving Elon Musk's starlink services. Again,
(04:50):
all steps in the right direction. Do I know what's
going to happen or how this is going to turn out,
or how this is going to work out, and be
honest with you, I don't. I I don't. I don't know.
As I said, the hope is is that we see
(05:11):
tariffs come down everywhere. I am a you always have
been a free trader. Trade to me, business to me
is the best, best kind of foreign policy. It's the
best kind of foreign policy. Again, I'm an Adam Smith capitalist.
Two parties sitting down together, you know, both have wants, needs,
(05:34):
They do business with one another, they walk away happy.
You know that that's a good thing. And you know,
I think that would solve many problems in the world.
Quite frankly, with the more business that's being done again
being an insular economy is not the way to go.
And you know, I don't think that we're heading in
that direction. I don't. As far as making the United
(05:58):
States this massive manufacturing powerhouse again, I just don't see it. Okay,
I don't see it. We'd like to see more plants
being built here in the United states'd like to see more.
It happens, naturally. One of the reasons why you've seen
(06:19):
recently Hyundai and their plant just opened up that was
announced back in twenty nineteen. Reason why you saw BMW,
seen these other companies open up plants here in the
United States is because we provided an environment for them
that is better than the alternative which is back there
in Germany. Our energy costs are cheaper again, you know,
(06:41):
the cars that they're making quite frankly for the American market.
For the most Americans like their big cars, they like
their SUVs. The free market will find a way. I
don't know. I don't know the ins and outs of
the tariffs from each individual country when it comes to
(07:01):
our cars that are going in there. Again, I understand reciprocal.
I understand it being even when tariffs turn into economic engineering,
that's that's when I have a bit of a problem.
Now again, do I believe Do I believe that we
(07:26):
should be doing trade in business where people have indentured
servitude and essentially slavery. No, no, I don't. But cheaper
labor has always always played a part in the movement
of jobs, and it's also helped to lift countries up,
(07:48):
even here where you know, the United States, the colonies
you think we were, the colonies of the UK, we
were cheaper labor over here for many products in certain
industries that used to be you know, we're huge and
great Britain moved over here, then they move elsewhere. It's
it's part of what happens. It's part of the the
(08:09):
ebb and flow of things. And that's that quite frankly,
is not going to change. What I have a again,
always had a problem with is when people in you
get people in Washington, d C. Or people in Beijing,
or people in Brussels, whatever it may be, think that
they can tinker around and think that they can manage
(08:30):
an economy. You can't manage an economy. It's unmanageable. It's
like trying to manage mother nature. Can't do it. I
can't manage mother nature. You deal with it. The terrain
is what the terrain is. You know, for example, today
you get these useful idiots Jared Bernstein, Oh my god. Yeah,
Jared Bernstein was the one didn't understand how the US
(08:52):
bond market worked, and he was Biden's economic advisor. He
and Dean Baker took to the page of the Wall
Street Journal today tariffs will bring a boom to American manufacturing.
He writes this whole thing, you know, going against tariffs
and how they're going to work. You know what his
suggestion was, I'm not making this up. He said, what
will really help America is more subsidized loans, tax credits,
(09:16):
and grants for green shit. Yeah, he actually put this.
And again, you know, honestly, Wall Street Journal, I mean,
come on, this is just stupid. You don't need to
print something this moronic for crying out loud, just because
it's from Jared Bernstein actually suggesting that's what we need
to do. What the country needs to do is to
(09:38):
subsidize more green jobs, more windmills, more solar panels. Really,
he really can't get much dumber than that. Anyway, Anyway,
we're going to see what the fall it's going to
be next week again, big week, Big week. When it
comes to tariffs, we are, without it, without a doubt,
(10:01):
we are in a better better position than these countries,
and we are putting tariffs on. Trump also laid down
the law said, hey, if Canada and the European Union
you're going to start getting together here to work together
to hurt the United States, Well, he's going to push
(10:21):
back even further than that. We don't want. We don't
need to see that again. Do I do? I think
that everything's on the table. Do I think that the
lawfair that takes place in the European Union against our
technology companies, is that going to be a part of
this as well? Yeah? I do, Yeah, I do, and
(10:45):
quite Franklin, I'm hopeful. I'm hopeful within the next several
weeks there'll be a bit of a meeting of the
minds and everyone can walk away happy because and essentially,
that's what you want. That's what the best deals that
are made. It's not when you get over on someone
(11:07):
now because guess that that comes back to bite you
later on mens it causes bad bloyd that that that
hurts business. It's short term gratification rather than long term
gain gain the best. The best deals that are done
are the deals that are done. We're both both sides
are happy. Watchdog on Wall street dot Com h
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