Why Tariffs Could Cost Far More Than We Might Think
There are many words that can describe all of the tariffs -- potential tariffs, retaliatory tariffs -- but one word in particular strikes fear in investors: Uncertainty. That word happens to be one of the most hated words on Wall Street, a word that can throw investors into a panic. Here's the kicker: We've mostly been calculating the tariffs simply based on the 25% slapped on imported vehicles.Soon we'll have to add in the effects of a 25% tariff on key automotive parts that are imported. We just got one example involving General Motors (NYSE: GM) of another way tariffs could cause extreme disruption, but is it cause for concern just yet?What we haven't heard much about recently, at least when it comes to tariff issues, is plant shutdowns. Generally speaking, when a plant has to shut down production for strikes, or any reason, it's bad news and can cost automakers a small fortune in lost revenues and profits.Continue reading
There are many words that can describe all of the tariffs -- potential tariffs, retaliatory tariffs -- but one word in particular strikes fear in investors: Uncertainty. That word happens to be one of the most hated words on Wall Street, a word that can throw investors into a panic. Here's the kicker: We've mostly been calculating the tariffs simply based on the 25% slapped on imported vehicles.
Soon we'll have to add in the effects of a 25% tariff on key automotive parts that are imported. We just got one example involving General Motors (NYSE: GM) of another way tariffs could cause extreme disruption, but is it cause for concern just yet?
What we haven't heard much about recently, at least when it comes to tariff issues, is plant shutdowns. Generally speaking, when a plant has to shut down production for strikes, or any reason, it's bad news and can cost automakers a small fortune in lost revenues and profits.