Mitsubishi is on the ropes – chiefly because of Trump’s taxes. He calls these “tariffs,” because that causes some to believe they are not in fact taxes. This is semantics. When the government forces an individual or a company to hand over money, it is taking money – and that is what defines both a tax and a tariff. The difference between the two is that a tariff-tax is levied on a company, which then raises the price of its products to recover what it was forced to pay the government – while a plain old tax is paid directly, by the individual.
Tariffs are clever taxes because people do not easily see that they are being taxed. They see the cost of the tariff’d item going up – and blame the producer or manufacturer for this. They also have the option to not buy the item, which is another important difference between most taxes and all tariffs.
There is no legal requirement to buy, say, a tariff’d new car that suddenly costs much more than it did, on account of the transferred tariff tax the vehicle’s manufacturer has folded into the sticker price. This is why Mitsubishi – already on the ropes – may soon be down for the count. It has not yet significantly increased the asking prices of its vehicles, but it is almost certainly going to have to do that in order to recover the losses it is absorbing via the tariff-taxes it is paying. The company reports Q3 profits down almost 80 percent. This is a measure of the costs Mitsubishi is being hit with, that it is having to absorb. But – just as a paper towel can only absorb so much spilled water before it cannot absorb any more water – Mitsubishi is going to have to raise prices in order to recover its losses.
But – as mentioned above – Mitsubishi is not the government, so it has no power to force anyone to cover its losses. When the company inevitably jacks up the sticker prices of new Mitsubishi vehicles, it is just as inevitable that sales of new Mitsubishi vehicles will decrease. This will inevitably make the situation even worse for Mitsubishi, which won’t be able to able to afford to continue losing money indefinitely. 
It is not just Mitsubishi, either – though Mitsubishi has been hit particularly hard by Trump’s taxes (er, tariffs) because its vehicles are made entirely outside the USA. It had been making some in the USA – until 2009 – but that plant (in Normal, IL) stopped making Mitsubishi vehicles after the latter’s partnership with Chrysler ended. You may remember “Chrysler” models such as the Dodge-branded Stealth, which was a Mitsubishi-made 3000 GT. At any rate, Mitsubishi hasn’t made a vehicle in the USA since ’09 and on account of this, is paying bigly for it. 
It is literally not just Mitsubishi, either – in that Americans who work for Mitsubishi, directly and indirectly, are going to pay for this when Mitsubishi disappears from the USA (and maybe from the world). There are about 308 Mitsubishi dealerships in the United States – as of September, 2025. How many Americans work at those stores? How many American families rely on the income earned by the people who work at those stores, as sales managers, sales staff, technicians and so on? Then there are the supply chain people – the ones involved in making sure there are parts for Mitsubishi vehicles available in the USA. It’s a lot of people. A lot of Americans.
They are the ones who will be paying for all of this. 
And so will we, when all of those people end up unemployed and collecting government benefits paid for by Americans.
Trump’s tariffs have a jingoistic appeal rooted in understandable nostalgia for the era when Americans made things for Americans, who could afford these things because there were good jobs in manufacturing that enabled them to afford them. That went away chiefly because manufacturing was exported to places outside the America.
Does anyone bother to ask why?
It is because it costs more – much more – to manufacture anything in America, on account of all the costs imposed by the government of America on manufacturing anything in America. It costs so much less to manufacture a vehicle in Thailand, for instance – which is where Mitsubishi manufactures some of its vehicles – that they can be sold more competitively in America, even though those vehicles have to be shipped across the ocean to get them to America. 
Trump hasn’t done anything to make it more affordable to manufacture vehicles in America; his idea is to make vehicles manufactured where it is more affordable to manufacture them more expensive to sell in America. He thinks this will sell – politically – because he thinks Americans are too dumb to notice they’re paying more because it’s a tariff rather than a tax.
And they ask me why I drink.
. . .
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RE ” – because he thinks Americans are too dumb to notice they’re paying more because it’s a tariff rather than a tax.”
I have been assured by many, & almost countless, articles online, that I’m Not paying more because of tariffs. Don’t you trust, ‘the experts’ by now?
…Anyway, did you catch the latest Candace Owens?
https://www.youtube.com/watch?v=9k2xrAC0H88
‘Game of Thrones’ stuff.
What cars does Mitsubishi even still sell?
Lancer Evo, now that was interesting.
Which they killed off in 2017.
Mitsubishi’s auto operation has been financially shaky and its products have had a bad reputation for decades. There was talk of its leaving the US 20 years ago after a particularly stupid financing deal left it holding the bag for a bunch of repossessed year-old cars. The company has been an also-ran in the US for good reasons.
Japan might not make Yugos, but Mitsubishis come close enough. Trump’s tariffs are not the main cause of the company’s woes, but they might prove to be the final straw.
Meh. There is a 15% reciprocal tariff on Japan. Trump offered a reciprocal 0%, Japan decided it was worth it to keep their tariffs in place, though at a now uniform rate. Thailand is on a 19% reciprocal tariff. Same offer, same rejection.
Uncle Sam has been playing the sap long enough, screwing US manufacturers because they didn’t stand up for them. Trump is the first to have cared enough about US manufacturing and labor to do something about it.
I was really down on them at the start, but didn’t realize the high tariffs were just bargaining chips. What everyone else is stupidly calling TACO turned out to be a successful strategy for getting tariffs dropped around the world.
Eric, when did you get into the manufacture of automotive tools?
https://theepauto.com/
LOL
(Looks like Chinesium Junk)
Keep in mind that the proceeds from tariffs are deposited directly into the treasury without congresscritters’ grubby hands getting a hold of them.
Abolish the income tax and tariffs will work.
As an aside, tariffs should be carefully tailored to exclude products that cannot be produced in the USA, chocolate being one such product. Any product that can only be grown on foreign soil due to climate and weather conditions should also be exempt from tariffs.
Everything else is fair game…
Or Tea?
Throw a party!
I’m not sure if putting a tariff on a product or good that cannot be produced domestically is practical or desirable.
For one it leads to subjective favoritism by importer and tariff enforcer. Who gets to decide what is or isn’t possible? Having some central authority lead to centralization of corruption.
I tend to agree with you, no income tax is key. But the Constitution does allow for excise and tariffs, which seem on their face a fine way to finance a common government (if such is considered necessary indeed).
So if a tariff is levied it should be uniform and indifferent. Either everything imported gets a tariff or nothing. Otherwise the tailoring will lead to lobbyists.
You cannot abolish the income tax without dramatically reducing the size and cost of government.
In order to replace the income tax by tariffs without doing this, the average tariff on all imported goods would have to be set at such levels that imports would basically stop. And then the tariff revenue would collapse.
The only viable and sensible solution is to reduce the size of government by at least 75%, or better still, by 90%. Then the income tax could be gotten rid of, and tariffs could be set at a few percent, which would be sufficient without distorting the entire economy.
Needless to say, the massive benefits of reducing government to a tiny stump of itself would result in a boom in both the economy and living standards.
Alas, none of that will happen.
Morning, John!
Another thing that could be done but won’t be done is to cut the “defense” budget by two thirds. And then “aid” to foreign countries by 100 percent. That would immediately allow for a massive tax reduction, but it’ll never happen because Boeing and Raytheon (and Keeeeeeeeeeeeevvv and Israel) are more deserving of our money than we are.
This is grasping.
Mitsubishi has been on the slide for years and that accelerated being swept up in the alliance with Renault-Nissan.
Mitsubishi left the European markets in 2016 and India in 2020. Where those Trump’s tariffs?
Mitsubishi failed due to at least and perhaps more than a decade of epic mismanagement.
Sadly, Mitsu was failing well before that. My first car (just out of college, first job) was a Mitsubishi Tredia. Liked the car…at first. Then, issues. Clear coat finish started flaking off, had to get the car repainted (thank heavens for Earl Schieb, whatever happened to them?). Then the choke pull-off for the carburetor started giving me trouble, kinda sorta got it fixed. Then the thing started leaking oil. That was after about 8 years. I traded it in for a Nissan Stanza, had that car for 15 years, loved it. My wife and I currently have a 2004 Toyota van and 2007 RAV4. Knock wood, both those vehicles continue to do yeoman’s work and I intend to keep them. Yes, Mitsubishi, quality counts.
When Hemmingway was asked how he went broke, he said: slowly at first, then all of a sudden.
I would have some sympathy for Mitsu if tariffs were the only cause. However, they kissed the EV tar-baby just like GM and Ford. That has a major factor in their loses. Leaving the US in manufacturing might have been avoided if they continued to make their small pickups in America from the 90’s on. They also make today a nice-looking Triton (aka L200/Strada) midsize pickup sold in Australia, Asia and middle East. It would be interesting to see a review of the Triton to see what we are missing here in America.
How Trump Killed
MitsubishiArizona Cotton Farmers‘Arizona cotton growers say they are paying the price of the ongoing trade war, with exports plunging nearly 90% this year and many family farms facing uncertain futures.
‘Despite being eligible for President Donald Trump’s multi-billion-dollar farm aid package, local growers and the Arizona Cotton Growers Association say one-time payments will not immediately repair widespread losses.
“We have growers that are considering maybe not growing at all,” said Arizona Cotton Growers Association Executive Director Jadee Rohner, describing producers as largely small, family-run operations that have been passed down through generations. “A lot of them are saying, ‘Go to school and find something else to do.’”
‘The association says nearly all Arizona cotton historically has been exported to major customers such as China. But as tariffs and trade disputes have taken hold, exports dropped this year from several million to a few thousand barrels, officials said. At the same time, cotton prices have fallen to about 20 cents below the level at which growers say is profitable.’
https://www.azfamily.com/2025/12/15/trade-war-slashes-cotton-exports-arizona-growers-say-aid-wont-fix-losses-easily/
Thanks for nothin’, pal.
If we must be taxed, I would prefer a use tax or tariffs rather than stealing directly from my paycheck. At least with those, one could theoretically abstain from taxation. My only choice right now if I want to stop paying taxes is to become homeless.
Yep, but here’s the problem with that solution: as in all Communist countries, homelessness is technically illegal in most U.S. states.
Orange Oaf sued for demolishing the east wing of the White House:
‘The National Trust for Historic Preservation filed a lawsuit against President Donald Trump and federal agencies on Dec. 12 over the ballroom construction project at the White House. The ballroom project violates several federal statutes, including the Administrative Procedure Act (APA) and the National Environmental Policy Act (NEPA), the complaint argues.
‘According to a list provided by the White House, donors include Amazon, Apple, Google, Caterpillar Inc., HP Inc., Lockheed Martin, Meta Platforms, Microsoft, Palantir Technologies, and the Union Pacific Railroad.
‘National Trust is also asking for an injunction to halt work on the project “until the necessary federal commissions have reviewed and approved the project’s plans; adequate environmental review has been conducted; and Congress has authorized the ballroom’s construction.’
https://www.zerohedge.com/political/national-trust-sues-trump-admin-over-white-house-ballroom-project
Little people have to apply for building permits and undergo time-consuming inspections. The US fedgov exempts itself from such trifling rules. But even the fedgov has to follow the constitution and federal statutes such as APA and NEPA.
It looks like the motion for an injunction has a decent chance of succeeding. It would be fitting punishment for Donnie Dickhead to spend the rest of his presidency in a partially demolished White House, as his vulgar Danse macabre ballroom molders in the rain and DC humidity. Black mold for the Orange Oaf! 🙂
I would especially like to see the chiseling corporate leeches who funded this misbegotten project smacked down good. Plunder the Tech Lords.
Tariffs are the only reason I voted for the obese, orange bloviating madman. No one is required to pay a tariff if they buy American. That said, this fucktard messed that up, too.
I hope this administration goes up in flames, frankly.
Eric wrote: It costs so much less to manufacture a vehicle in Thailand, for instance – which is where Mitsubishi manufactures some of its vehicles – that they can be sold more competitively in America, even though those vehicles have to be shipped across the ocean to get them to America.
For a few more years that will be the case. But then the next generation of Thais will start working. The ones who benefitted from their parent’s hard work building the factories and putting in the long hours. The next generation won’t put up with that, especially since they’re educated. They’ll have to get paid more to do the same work, while the still working first generation tops out their pay scales just before retirement.
So where to next? China and India are past this stage and well into the generational decline. Middle East? Nope, too unstable and subject to the whims of the oil sheiks.
What about Africa? The continent of the next hundred years (and always will be). I’ve read that many of the Somali brought into the US have a sub-average IQ. Like way below average. Like around 60. Can’t get someone with a 60 IQ to show up consistently, let alone understand why ALL the lug nuts need to be torqued to 100 FtLbs. Can’t really get them to understand a foot pound. Or much of anything other than eating and shooting someone who makes them do something they don’t want to do (as we learned with McNamara’s Morons).
Maybe Elon’s AI robotic doppelgängers will make America great again by shifting labor to a capital expense. Not only do you get loyal workers who never stop working, you get to deduct them from your taxes! When they age out, just dump ’em in the landfill, no pensions, no health benefits, no maternity leave, no hangovers. Margins will skyrocket, eventually. Oh the first generation will be absurdly expensive, but as long as they’re a few bucks cheaper than hiring people, they’ll payback quickly. Then you wait for everyone to start undercutting each other and the “best price” Asians come in and take out everyone. Or just program the first generation to make the second. It becomes a self-replicating machine.
Maybe Klaus Schwab is right: We’ll own nothing and be happy. Because there won’t be anything worth owning.
Hi Ready.
Some Science fiction story I read decades ago did have a solution about the robot problem. Only individual humans would be allowed to own them but they could lease them to a corporation. People who upgraded their robot for more complex tasks could get more money for it’s labor and those who didn’t would have it only earn the equivalent of minimum wage because it could only perform simple tasks.
Not mentioned but probably needed would be robot “health care” where the factory owner is required to repair and service the robots they “employ” at his own expense.
As for Klaus maybe he needs to be locked in with a group of feral hogs that haven’t been fed lately. Just saying.
That’s letting Klaus off easy, but I’ll take it.
According to the “studies” every sub saharan African nation has IQ in that range: “However, black Africans turned out to be, on average, substantially below black Americans in intelligence test scores. The Bell Curve cited Richard Lynn’s (1991) review of 11 studies from East, West, and Southern Africa reporting an average IQ of 70 (median = 75), 15 points (1 SD) lower than the mean of 85 typically found for black Americans and 30 points (2 SD) lower than the mean of 100 typically found for Whites… Lynn (1997) reviewed five additional studies of African IQ scores published between 1985 and 1996. Mean IQs were in the range of 60 ± 74. One study reported the results from a random sample of 1,639 adolescents in Ghana drawn from the entire country (Glewwe & Jacoby, 1992). Their mean age was 15.2 and their mean score on the CPM (the simpler version of the SPM) was 12.5, equivalent in British samples to an IQ of 60…as providing vitamin and mineral supplements to enhance cognitive functioning, should be examined. (There is evidence that vitamin ±mineral supplements can add necessary trace elements to the brain in those who may have been deprived of them and so improve test scores; Eysenck & Schoenthaler, 1997.) Examining these questions will tell us a lot, not just about group differences, but about the nature and nurture of intelligence as well”
https://www.charlesdarwinresearch.org/wp-content/pdf/Intell00Ravens.pdf
Somali iq tests to children in refugee camps suffering from trauma by people who don’t speak their language.
https://www.researchgate.net/profile/Salaheldin-Bakhiet/publication/321527992_A_Study_of_Sex_Differences_in_Intelligence_of_Somali_Refugees_in_Kenya/links/5a29692faca2728e05dabb2c/A-Study-of-Sex-Differences-in-Intelligence-of-Somali-Refugees-in-Kenya.pdf
One reason US children are now given vitamins and school food programs (also “head start” lack of stimulus in developmental years) is that malnutrition and vitamin deficiency cause brain issues including “low IQ” (vide Appalachia McNamara Morons) (but trauma such as civil war/weather events can also cause brain injury like PTSD). Bariatric surgery is now causing dementia and psychosis due to malabsorption of vitamins/nutrients not in generations but in days/months: “Many psychiatric complications after gastric bypass surgery, such as severe psychotic disorders, Wernicke’s encephalopathy, and Korsakoff’s syndrome, have been reported in the medical literature.”
https://psychiatryonline.org/doi/10.1176/appi.ajp.163.1.15
[also colon resections] FOLLOW UP IN LARGE BOWEL RESECTIONS: WERNICKE-KORSAKOFF’S SYNDROME
https://www.pagepressjournals.org/jsas/article/view/jsas.2009.76
PS: I never heard of “McNamara’s Morons” before, but people learn different lessons. You may say they lacked the “want to” and shot other people, this guy says “Mostly blacks and redneck whites, hailing from the mean big city ghettos and the remote Appalachian valleys. By drafting them, the Pentagon would not have to draft an equal number of middle-class and elite college boys whose mothers could and would raise hell with their representatives in Washington…The cold, hard statistics say that these almost helpless young men DIED in action in the jungles AT A RATE THREE TIMES HIGHER than the average draftee. The Good Book says we must forgive those who trespass against us—but what about those who trespass against the most helpless among us; those willing to conscript the mentally handicapped, the most innocent, and turn them into cannon fodder (or slaves)? What can we learn from McNamara’s Folly? The overriding lesson is that low-aptitude individuals should never be used in a war zone or in dangerous areas. Putting their lives at risk is cruel and immoral. On a sheer practical level, Project 100,000 degraded the effectiveness of the war effort.”
https://vvaveteran.org/36-3/36-3_morons.html
PPS: Even if it was “worth” owning, do you think it would make you happy? There’s a certain measure of satisfaction, pride, security, pleasure but don’t believe “happiness” resides in ownership or lack thereof. For instance, I cannot think what Trump/Musk/Schwab could possibly own that would make them shut up and/or stop stealing/exploiting/killing (this last retard, stupid, leftist, capitalist) to make themselves richer, more powerful, wanting another thing like the nobel peace prize, or to conquer one more nation to make US/israel/themselves “greater.” St. Paul indicates contentment is a LEARNED habit.
I guess this is a companion piece to your article on cognitive dissonance.
When my Trump hating acquaintance started screaming about these tariffs I pointed out to him it’s no different than the taxes on corporations that he so loves. Needless to say he has yet to address the comparison.
Yes. I love how liberals scream about tariffs but advocate corporate taxes. The tariff can be avoided if people buy domestically sourced products and services.
Except if the domestically sourced product is fabricated from internationally sourced materials subject to tariffs.
I also resent the idea that I need to pick only domestic things so as to avoid the tax. Such presumes that the domestic thing is well made, desirable, or more suitable for its task or my needs than the international counterpart. Why can’t competition drive innovation and quality, as opposed to government picking winners and losers via tax policy?
Well, domestically produced made with foreign sourced components should get a break on the tariffs. The raw materials and components shouldn’t be taxed then. Just the finished product to start.
I’m not against favorable treatment for domestically produced products.
You should still be able to get the foreign made stuff, but if it is made in countries with a significantly lower standard of living, it’s only fair.
‘Trump’s taxes he calls “tariffs.”‘ — eric
Trump’s tariffs may be the largest tax increase in US history, already having mulcted hundreds of billions. Does any MAGA lost soul still regard the R-party as tax cutters? Yeah, the Gipper cut taxes 44 years ago. That was then; this is now. The genial Reagan was never an intellectual — after all, his metier was acting. But the uninformed, illiterate Trump makes Reagan look like freaking Einstein by comparison.
On November 5, the Supreme Court held oral arguments on V.O.S. Selections v Trump. Forty (40) days have passed, as the august ‘justices’ exchange opinion drafts through the brass pneumatic tubes that link their offices. The little people who run little businesses such as V.O.S. Selections and Learning Resources and Mitsubishi will just have to cool their heels as they bleed out.
Article 1, Section 8 is perfectly damned clear that all taxes, including tariffs, are the responsibility of Congress. But those clowns are nowhere to be seen. Under Speaker Mike “Israel” Johnson, the House went on strike against the American people for 54 days, collecting pay while refusing to work. Every one of them should be prosecuted and stripped of their ill-gotten loot.
If the ‘justices’ rule in favor of the plaintiffs — how can they not? — the Tariff King is going to get his feet chopped off at the ankles. I, too, will donate to the fund to buy him a set of crutches. One envisions Donnie making the best of it, riding in an open car like ol’ Frank Roosevelt, a cigarette holder clamped between his teeth at a rakish angle. If Donnie ever had read Ayn Rand, he’d get those special cigarettes with the gold $ sign on them. But he don’t know … 🙁
From somewhere outside
I hear Donnie Fubar cry Filé gumbo
From my window I see him
Going down the street
And he don’t know
That she fell right to sleep
In the damp tangled sheets so soon
After love in the hot afternoon
— Gene Watson, Love in the Hot Afternoon (1975)
Also hope the Supremes rule in favor of Costco et al and require that all the money stolen via Trumpy’s tariffs gets refunded to those that paid it. What a clusterf*ck it will be untangling that ball of string.
All these tariffs might have worked if there had been encouragement to actually manufacture items here but they have not so it won’t work.
Part of the reasons manufacturers are not rushing to return is they know that with a change of administration it will all change again. The Chinese do planning on a very long time line and we just look at the next quarter or two. Even if you had a CEO that wanted to build items here just one look at a potential workforce made up of hood rats and tick tok stars would be enough to not build that plant.
Amen, Landru –
Particularly given Trump is likely to be rendered politically impotent when the Democrats retake both houses in 2026, which seems a very good bet at this point. He may even be removed from office. It isn’t unlikely the 80-year-old spray tan’d evil clown will just croak. No manufacturer is going to malinvest millions in Trump’s rhetoric. They need stability – not chaos – in order to intelligently plan fore the future.
It is highly unlikely that the Senate will overturn. Only 1/3 of the Senate is up for grabs in 2026. Democrats are defending 13 seats and Republicans 20. You may have a surprise in Maine where Collins is defending her seat, but they tell us that every time her seat comes into contention so I am not quite sure I believe them this go around either. Thom Tillis’s seat may switch in NC. The Dems are defending in MI and GA. The rest aren’t even close. Even with Mitch McConnell leaving I don’t see KY putting a Dem in .
Maybe, RG –
But I sense Orange Fatigue setting in. Observe that in our state Spanberger destroyed Sears and that creep got elected AG. Orange Man is a millstone around our necks. In re this, did you see this? https://variety.com/2025/film/news/donald-trump-rob-reiner-dead-trump-derangement-syndrome-1236608923/
What a vulgar, low-class clown he (Trump) is.
Hi Eric,
No doubt, Orange Fatigue has set in, but very few states will oust their Congress people, especially Senators. The House will be decimated, but I expect the Senate to remain pretty much intact.
None of us should be shocked that Trump is a lunatic. Nobody voted for him believing he was going a shoo in for calm, serenity, and upstanding moral values. I believe most were just looking for a repeat of 2017-2019 where the economy was pretty decent. I don’t know what we call this (whatever the hell we are going through now).
Trump is mentally ill. He exhibits congenital poor taste, filtered through lifelong Narcissistic Personality Disorder and now, escalating paranoia.
Americans expect their president to be a decent human being. Trump dismally fails this test.
Two words: Amendment XXV.
Nixon-era bathroom stall graffiti: ‘Flush twice — it’s a long way to Washington.
Hi Jim,
The problem with the 25th amendment is that it has to be voted on by his Cabinet, and there isn’t a bigger collection of ass kissing bootlickers this side of North Korea; first time I saw one of his televised “cabinet meetings” I almost gagged.
That was highly inappropriate.
I was not in agreement with his politics, but who cares? He shouldn’t have had to die the way he did (which unfortunately lends itself to “dead from the neck up” jokes). His movies were great. He wrote the snappiest dialogue. Why not remember him for the good stuff?
The Dems got Miami Dade for the first time in 30 years.
Unless the economy is performing far better by summer, the Repukes are toast.
I enthusiastically endorse this comment.
Even if companies want to re-shore, it will take years to restore the long abandoned factories. And that’s just restarting the buildings that exist. Too bad there’s no way anyone will try to settle in Detroit or Pittsburgh, because the first thing that will happen is the locals will present them with a bill for all the back taxes the property owes. Then the unions will squawk about closed shops rules. Pretty soon they’re right back to what caused this to begin with. The federal government is only one part of the problem. The states and locals were every bit as much of the reason for the downfall as the rise of the overseas manufacturing base.
If you do want to build in the US, you’re going to the south and starting with a blank page. That means new roads, new power lines, new rail spurs. That means greasing palms all over the state and county. That means finding capable people. And that’s before you even break ground.
True dat: Witness how German, Japanese, and Korean car companies locate their American factories nowhere near Detroit.
Any factories that do open in the USA are
likely to be significantly automated and built in locales with low taxes and lenient regulations, be non-union, and not pay six figure salaries for putting bolts in body panels.