Adding a hefty tax on materials and equipment will make US products more expensive both here in the USA and abroad.

If that is "helping", then I want as little help as possible.

Mike C.

Could you provide a verifiable example of these other tariffs?

Mike C.

Maybe. But in the meantime, nobody wants to make a billion dollar investment and have the rug yanked out from under them at the last minute.

Example - there is a multi billion dollar EV battery plant about 3 miles from my office. It is literally in its finishing stages as we speak. Right or wrong, the policy changes on EV's have largely gutted the ROI of that massive investment.

Nobody wants to be the next chapter in "Wasted investments because policy changed on a political whim". So companies are sitting on the sidelines with their cash and NOT making capital investments because of the uncertainty.

Could you provide a verifiable example of these other tariffs?

Mike C.

Maybe. But in the meantime, nobody wants to make a billion dollar investment and have the rug yanked out from under them at the last minute.

Example - there is a multi billion dollar EV battery plant about 3 miles from my office. It is literally in its finishing stages as we speak. Right or wrong, the policy changes on EV's have largely gutted the ROI of that massive investment.

Nobody wants to be the next chapter in "Wasted investments because policy changed on a political whim". So companies are sitting on the sidelines with their cash and NOT making capital investments because of the uncertainty.

The effect of this won't be fully felt for years so everything will seem to be going okay in the short term, but the negative impact is festering and will show up at some point.

Uncertainty is far more damaging than any policy choice. Uncertainty freezes business decisions.

The real impact is that the USA is the wrong place to start, move, or expand a business right now. Crossing the USA border, in or out, is toxic to commerce.

Mike C.

I've adjusted to the reality that the EV I own is the best car I ever had.

Mike C.

Such a blanket statement is ignorant and motivated by… your politics.

As to subject of thread, and tariffs and labor, Mike C already covered it pretty well.

Having to depreciate real property prevented me from investing in several properties I was considering. Paying large amounts of cash and being able to recognize 5% of the expense each year is brutal.

Bonus is a dumb name for “bonus depreciation.” Having the option is good though. Many businesses will finance purchases. Probably good practice to match depreciation with payment length.

Per the USMCA, Chapter 4, Annex 4-B, HTS 4012.20.1010 Aircraft, importing Canadian aircraft to the USA has no tariff. The imported parts they use are not subject to US tariffs, either, since those parts are imported to Canada.

Meanwhile, a US aircraft maker is importing parts from many places with tariffs, driving up their costs, and when they sell, they may also be subject to reciprocal tariffs depending on where the planes goes. Thus the buyers are paying for the part tariffs and the finished good tariff, driving up the cost.

Advantage: Canada. They can make the plane cheaper than the US maker can due to US tariffs.

Tariffs penalize US makers by increasing the cost of their products. The rest of the world is now in a favorable position to take more business from US makers.

Mike C.

That is not true. Just because you don’t know doesn’t mean no one knows. The economic effects of tariffs are well studied and consistent through history. Economists know the broad effects. They are a net economic negative and are essentially a big sales tax on US consumers.

You are absolutely certain about many things which are incorrect.

EVs work very well here in Northern Virginia, where there is a huge charging network. Driving through WV can be a chore sometimes but the Tesla Supercharger network helps and beats the crap out of Level 1 or Level 2 charging!

Granted, when I take my trusty steeds to WV, I am certainly going to take the 5-7 minute gas and potty break versus a 30-60 minute break.

The Rivian R1S 7-row SUV with Max battery certainly looks tempting. I enjoy the Toyota and Lexus products but would certainly be interested in the newer Rivians. By the time I finished filling out the deposit for the Electric Hummer Black, the positions had all been filled.

...and this isn't political. IF Tesla had a halfway decent 3-row SUV that could comfortably fit 6' 2" adults and their tall teens, I probably would have bought one and tried to put 250K miles on it over the next decade and a quarter. For now, SWMBO's Rx 450h does the trick and has 170k miles on it and still gets great gas mileage.

...but that Green Rivian and Canyon Red Rivian R1S 3rd row SUV looks gorgeous!

Yes it does!

(But, MSRP = $108,000)

Whether the tariffs help or hurt any particular manufacturer is specific to their business.

e.g. SpaceX imports Brazilian stainless steel for Starship. Boeing uses US-made aluminum for SLS. SpaceX's costs have gone up in this case whereas Boeing's haven't. Not that either of them care what that costs, and they don't export, so maybe that's a bad example,

If you import things that become more expensive because of tariffs, and then export them into a market where your product is now more expensive, it seems axiomatic that that's going to hurt your sales.

Such a blanket statement is ignorant and motivated by… your politics.

As to subject of thread, and tariffs and labor, Mike C already covered it pretty well.

Having to depreciate real property prevented me from investing in several properties I was considering. Paying large amounts of cash and being able to recognize 5% of the expense each year is brutal.

Bonus is a dumb name for “bonus depreciation.” Having the option is good though. Many businesses will finance purchases. Probably good practice to match depreciation with payment length.