Pushmi-Pullyu
Well-Known Member
Several questions come to mind:
1. Can the President unilaterally declare a tariff? Isn't that one of the powers which the Constitution reserves to Congress?
Unfortunately, it seems pretty clear that Presidents have broad powers to impose tariffs, without any action by or approval from Congress. See, for example, this recent CNN Money article:
"President... can levy tariffs without Congress"
2. What countries does Tesla get its steel and aluminum from?
I'm not sure the answer to that is entirely clear. I do see that U.S. steel maker AK Steel is reported to be a major supplier to Tesla. But I also note an InsideEVs news article which claimed that Tesla had signed a deal with S. Korean steelmaker POSCO. That article was taken down, but that doesn't necessarily mean the deal was nixed.
What about aluminum? Mr. Google points to several online references to Alcoa, which is an American supplier.
3. Would a tariff affect domestic (U.S.) prices for steel and aluminum?
Logically, the answer is likely "yes". If the price for imported steel and aluminum rises, why wouldn't domestic suppliers take advantage of that by raising their own prices? Plus, the normal economic forces of supply and demand will most likely apply. Tariffs on imported steel and aluminum would naturally result in domestic manufacturers switching to domestic suppliers, increasing domestic demand for steel and aluminum. With demand increasing, we can expect prices to go up, at least in the short term.
4. Would tariffs affect the price for parts made of steel and aluminum?
That's a question which I don't feel qualified to address. I'm hoping someone knowledgeable about that subject will post a response.
5. Would tariffs force Tesla to raise the price of its cars... in particular, the Model 3?
It's hard to see why that wouldn't happen. It would be unfortunate if the Tesla bashers turn out to be correct with their incessant FUD claiming that Tesla won't ever make a $35,000 Model 3. But we can't expect Tesla to make and sell cars without making a (gross) profit margin on them!
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1. Can the President unilaterally declare a tariff? Isn't that one of the powers which the Constitution reserves to Congress?
Unfortunately, it seems pretty clear that Presidents have broad powers to impose tariffs, without any action by or approval from Congress. See, for example, this recent CNN Money article:
"President... can levy tariffs without Congress"
2. What countries does Tesla get its steel and aluminum from?
I'm not sure the answer to that is entirely clear. I do see that U.S. steel maker AK Steel is reported to be a major supplier to Tesla. But I also note an InsideEVs news article which claimed that Tesla had signed a deal with S. Korean steelmaker POSCO. That article was taken down, but that doesn't necessarily mean the deal was nixed.
What about aluminum? Mr. Google points to several online references to Alcoa, which is an American supplier.
3. Would a tariff affect domestic (U.S.) prices for steel and aluminum?
Logically, the answer is likely "yes". If the price for imported steel and aluminum rises, why wouldn't domestic suppliers take advantage of that by raising their own prices? Plus, the normal economic forces of supply and demand will most likely apply. Tariffs on imported steel and aluminum would naturally result in domestic manufacturers switching to domestic suppliers, increasing domestic demand for steel and aluminum. With demand increasing, we can expect prices to go up, at least in the short term.
4. Would tariffs affect the price for parts made of steel and aluminum?
That's a question which I don't feel qualified to address. I'm hoping someone knowledgeable about that subject will post a response.
5. Would tariffs force Tesla to raise the price of its cars... in particular, the Model 3?
It's hard to see why that wouldn't happen. It would be unfortunate if the Tesla bashers turn out to be correct with their incessant FUD claiming that Tesla won't ever make a $35,000 Model 3. But we can't expect Tesla to make and sell cars without making a (gross) profit margin on them!
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