The Lincoln Nautilus is made in Chyna, which made it a target for Trump’s taxes on things made outside the U.S. – where it costs less to make things because regulatory compliance costs are lower. Trump applied punitive taxes – they are called “tariffs” to make the rubes think they’re not paying them – to the tune of 52.5 percent, which has made the Nautilus cost more to sell here. Which makes it harder for Lincoln to sell it and make money on it. So it will no longer be made in Chyna, according to news stories.
It will be made here.
Ford CEO Jim Farley says “Lincoln is a quintessentially American brand, and Ford is America’s automaker. This wasn’t necessarily the easiest path. In fact, it’s a path most of our competitors aren’t choosing to take. But Ford builds in America because we believe in America, and we’re betting on that belief again.”
Cue the Lee Greenwood song?
Maybe not.
Has anything been done to reduce regulatory compliance costs in the United States? How about – and this is perhaps becoming even more important than regulatory compliance costs – energy costs? It takes energy to make things. Thanks to Trump’s catastrophic decision to start (and lose) a war with Iran, energy costs in American are higher and thanks to data centers and their draw on the grid, electricity costs are higher, too. All forms of energy cost more here in the land of Freedumb. In Chyna, they were smart enough to increase the amount of energy available to – as the Pakleds on Star Trek put it – make things go.
The Pakleds were presented as Space Tards – but the Chinese are not Pakleds.
Trump seems to be, if you go by what he says and does.
Punishing Americans – by raising the cost of things – doesn’t help Americans. This is what the taxes styled “tariffs” do. At least, it is what they do when nothing is done to lower the cost of making things here. If nothing is done about that, all that happens is the cost of everything goes up. This business with the Nautilus can be used to make the point. The tariffs force Ford – Lincoln’s parent – to stop making the vehicle in Chyna, where it costs so much less to make it that Ford can still make a tidy profit selling it here after factoring in the cost of shipping it all the way from Chyna. Instead, they’ll make it here – where it will cost more to sell because it costs more to make – and the price has to reflect that. The pro-tariff argument is that Americans will be able to afford to pay more because they will be earning more at “good paying” jobs, such as those at the plant (in the U.S.) that makes (will make) the Nautilus here rather than in Chyna.
This makes no sense at all. More specifically, it doesn’t take into account the higher manufacturing costs (due to regulatory compliance costs) that can’t just be absorbed by the manufacturer. To believe this is possible is to believe in something as dumb as the Free Lunch. Here is a story about the manufacturing jobs not being created in this country.
There is also another, more silent aspect worth examining. It is that by eliminating the lower-cost things made outside the U.S., the lower-cost competition is eliminated. Put another way, the availability of imported thing “a” that costs less than domestically manufactured thing “b” acts as an incentive to reduce the cost of domestically manufactured thing “b.” Once that incentive is taken away, there is no incentive at all for the manufacturer of thing “b” to reduce costs. If anything, there is an incentive to raise costs, because that’s what generally happens you take away the less expensive alternative. What happened to the cost of health insurance after the government eliminated lower-cost alternatives such as catastrophic care coverage?
What are people (who need whatever the thing is) going to do when the less expensive made-in-Chyna (or Korea and all the other places where it costs less to make things) aren’t available anymore? Their choice is to pay what it costs – or not. Of course, if the price is higher than they can afford to pay, they won’t buy.
To be clear, this is not say it’s a good thing that Ford or any other vehicle manufacturer is making vehicles in Chyna rather than here – nor is it an argument for continuing to make them there. Obviously, it would be better for America if such things were made here – assuming they can be made at a cost Americans can afford. That is not likely to happen unless Trump – or whoever comes after him – addresses the problem of manufacturing costs, which are a function of regulatory compliance costs.
If Trump were as focused on dealing with that as he is on his social media meme’ing we might actually get more affordable things that are made in America again.
. . .
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Why would anyone even slightly concerned about electronic surveillance or ALPRs or anything like that have even the slightest interest in a car built in China? Why wouldn’t he want those off the road, so he does not have to worry about the Clovers running spy-mobiles?
Hi Steve,
The problem is the cars made here by Ford and GM spy on us, too. I wouldn’t buy any of them. But if I were in the market, I’d be wanting the best deal I could get – and if that means one made somewhere else, even China, I’m all in. No one is looking out for us. That goes particularly for Trump, an ignoramus and an oaf who understands nothing and cares for nothing other than his own aggrandizement (a big word I would bet you the title to my TA he could not define or spell). It behooves us to look out for ourselves.
Lincolns are manufactured in China because vindictive heebs wants you crackers broke. Look at your towns with your corporate goyslop shitholes, tattoo parlors and pawn shops…is that sustainable with a 40 trillion jew bar tab on your head? You are being seduced into an abatoir. They already stole everything, now they want the wee bit you got.
Am I the only one noticing the high price of the most inane things?
No, SCW – you aren’t!
I just got back from the grocery store; the “cheap” shaving gel is now $4 a can. Same stuff was $1.50 just a couple months ago.”Downer” cow steaks at Food Lion are $12. These used to be about $8.
I dont even remember what it was, but I know a few years ago it would have been about 50 cents and if I remember right it was seven dollars, it was so non descript the only thing I remember was the outrageous price for what it was.
Hi Eric and SCW,
Do you guys have an Ollie’s in your area? They are pretty affordable for toiletries, clean products, auto stuff (think Armor All and car sponges), and household things like extension cords and light bulbs. Twice a year they have an additional 15% off sale (usually in July and December), but I find their prices better than the grocery stores.
Old fashion shaving soap and a brush is the answer. And of course, a safety razor. A pack of 100 blades is dirt cheap and will last over a year.
Food Lion would raise prices on the Salmonella.
Food Lion and Walmart steaks have a strange texture and flavor. Since they already said they were putting that MRNA shit in cows long ago, steak that tastes even the slightest bit off is a no-go for me. For steak, Wegmans and Fresh Market seem to be the options for avoiding frankenfood steak for now. Publix steak tastes okay too, but it is so expensive you might as well go to Wegmans or fresh Market. I do not trust Wegmans though, because it is a new company made to look like an old brand and suddenly appeared everywhere at once, like Five Below and Ollies, meaning it is likely a private equity creation with no particular commitment to quality. But for now its cool. Ultimately, I want to buy only from local farmers. I have been using Kiehl’s products for the skin for two decades, ever since Johnny Drama name-dropped it on Entourage. Can’t skimp on what goes in or on mi cuerpo. Just being healthy is rebellious these days. Because we don’t drink, eat junk food or eat out, and both work, this is still affordable.
You are not alone. It’s insulting. If you operate with cash and use a budget you will be closely in tune on how fast things go up in cost. Watch most zombies in the check out line. They don’t really follow the prices, don’t hear the cashier when they say the total. They just grunt and swipe, grunt and swipe. Then they have the nerve to get antsy when I’m whipping out coupons and counting out the Monopoly money. If it bugs them so I’d be happy to have them pay for my haul to move things along.
-anon
Oh, a fellow couponer! I love it! I wish more people did this. The savings is pretty extensive. Over the years most of the store cards will allow you to “clip” the manufacturer coupons and store it on your savings card until they are ready to use. I base the coupons I use from the sale items in the weekly circular.
Not just you. This is what mild inflation looks like. Everything goes up, but non-uniformly, it goes in fits and spurts. I lived to 1000%+ annual inflation as a kid, and that kind of inflation destroys society.
We’re being made poorer by the day, but not fast enough to revolt.
Chinese cars are putting serious pressure on EU car companies; VW, JLR, etc, are all in a dire situations today. We don’t see this (yet) in the US because Chinese cars are banned here.
In Europe, Chinese cars have more features and cost less than European cars. China takes the software model to building cars; ship now, fix it later, so lots of them are glitchy and require a multitude of software updates to work correctly, so the main motivation to buy them is price.
I worked with some Chinese auto companies in the past, so I know that China, today, has among the most free market economies you can imagine. The west, with its central planners, can’t compete with that. People make stuff in China not just because of lower cost, but today, they have the worlds best supply chains. When you build something, you need material, fasteners, chemicals, etc. For example, the US no longer has a source of machine screws. You need to buy those from China even if you make stuff in the US.
The west, with its central planners, can’t compete with China’s free economy. Sure, in China, if you say the wrong thing, the government takes your company, but that doesn’t matter to us here, feeling the consequences of our idiot leaders, and their growth-loving leaders.
I’m curious, Eric. What is the point you’re trying to make by calling China Chyna? Usually such deliberate malformations of a foreign country’s name or people is intended to denigrate them, for example ‘Ayrabs.’
It’s not clear why you would want to do that, since you acknowledge that ‘it costs less to make things because regulatory compliance costs are lower’ there, which is one of the long-standing complaints you (and I and most everyone) have about the Unyted States regime.
Hi cobbles,
I did it because Trump loves to say it that way and the article is basically about Trump’s tariffs, etc.
I’m sick and tired of looking at this fat blowhard, who is always looking down his nose at people. As if he truly had an answer. He’s racing to the bottom as the worst POTUS ever.
What do you expect from an entity that has assumed authority to kill you if you disobey? And as of late, if you disagree.
If you think stuff is expensive now, just wait until tomorrow. On August 19th Demented Donnie’s 50% tariffs(sic) kick on on stuff imported from Canada; he exempted oil imports but Canada, deciding they’re tired of his ranting, is imposing its own 50% export TAX on everything else they sell to the USSA. That includes oil and lumber, so I guess a 50% increase in the cost of lumber is going to fix housing affordability.
If people really want Chinese junk wearing a Lincoln badge, they could always buy a Lynk & Co. No prizes for guessing what inspired that name, and the name itself should have been enough of a warning for Ford to stay the hell away from manufacturing anything in China. Instead we have Jim Farley praising two-bit appliance manufacturer Xiaomi and actually importing one of their junk vehicles for personal use and gushing about it in public, which really does beg the question who he’s working for (or who Ford is working for).
Morning, Stufo!
True story: Last week, I rolled into the parking lot outside my gym – Crunch Fitness in Roanoke – and saw a BYD EeeeeeeeeeVeeeeee. It wore plates issued by some central/south American country. How did it get to SW Va?
I thought it was illegal to drive Chyna EeeeeeeeVeeeeeeeeees here in the Homeland?
“I thought it was illegal to drive Chyna EeeeeeeeVeeeeeeeeees here in the Homeland?”
Look up how an ATA Carnet works
And for what it’s worth the Ford Edge and Lincoln Nautilus have never been made in USA.
Foreigners can drive pretty much anything they want into the USA so long as they don’t sell it here or don’t become permanent residents.
“The Lincoln Aviator is made in Chyna”
Eric, I think you meant that the Lincoln Nautilus is the model produced in China.
Production Location: Ford’s factory in Hangzhou, China
Thanks for the catch, Euro – fixed just now.
Not enough sleep and too much coffee….
Trumps joo war caused gas to go up $.35 yesterday. Thats the “cheap” 87 octane. I can’t imagine buying anything new whether it’s made in the US or not.
Since the late 1930s, US law provided for a ‘de minimis’ exception to Customs duties for small shipments. As of last year, it had been raised to $800.
Owing to the cost of hiring a Customs broker, it facilitates commerce to waive duties on small items. Try living in Latin America, without such exceptions, and find out what a costly hassle it is to import items such as books and electronic parts that aren’t available locally. Until now, a sensible approach to duties is what gave the US a better material living standard than the tariff-obsessed Third World.
No more, though. Last year, in the One Big Butt-Ugly Bill, Clowngress voted to end the de minimis exception in July 2027. Then, adding insult to injury, Donnie Fubar signed an executive order ending it immediately, despite clear-cut direction from Clowngress.
An auto parts supplier, Detroit Axle, challenged Trump’s executive order. Incredibly, this month Detroit Axle lost at the Court for International Trade. The court held that the de minimis exception was a ‘privilege’ which can be ended by executive order. And though this results in new tariffs, it’s somehow not the same as dictating … new tariffs.
For years, Americans have been sidestepping the absurd cost of US pharmaceuticals by ordering generics from India. Thanks to Trump and Clowngress, such shipments are now tariffed. It is just another example of viciously anti-populist Republicanism, as Tariff Man systematically closes every workaround and obliges America’s dying middle class to pony up new taxes on the basics of life.
It’s Israel’s Repuke party, but it’s our misfortune.
‘Trump Kills a Lincoln’ — just like John Wilkes Booth did. Sly!
I thought is was not possible to hate a political party than I hated the Dims for their actions during Event COVID but lo and behold, the Repukes have well and truly outdone them with being the Genocide, Endless War, and Israel Party. I HATE HATE HATE them with every fiber of my being (and I have despised the Repukes my whole life) and while I have no intention of voting for either, I want to see their asses get handed to them to such an extreme that the go the way of the Whigs before 2028.
That an abomination like the Big (not) Beautiful BOHICA Bill can be passed in “law” by just a few votes beholden to Party Uber Alles mean this country is BEYOND DEAD. It needs to be put out of its misery.
Ah, Mental Queen, don’t you know your hate will only make (((them))) grow stronger???
Their entire game of Dim vs. Rebuke is meant to distract you and everyone from the fact they entire political process in the US, and the West, is rigged and controlled.
Our (((government))) is really just like professional wrasslin’ on Super steroids.
To know who to really get angry towards takes a cool, non-emotional head…ask yourself….who controls your money? CONgress or the (((Federal reserve)))???
Who controls your (((politicians)))???
Who are you not allowed to criticize???
And the answer is the same for all….the Khazarian Mafia, or the jews….
YMMV….Oy Vey!!!
Colon cancer sucks a lot worse than your daily hate.
From a national security perspective most of what we consume should be made here. Currently if you have any income at all a good chunk of what you purchase is made elsewhere whether it’s made in China or Mexico matters little as the jobs building the product pay better than stacking in on a shelf at Wallyworld (adjusted for cost of living) and a strong manufacturing industry spins out related supporting industries. Of course with the regulatory behemoth we have I’d be surprised if we could produce toothpicks affordably.
I really could not give a shit about any “national security” perspective anymore. “National Security” is the last refuge of scoundrels and nothing more than a whip to keep the little people in their place.
The way I look at it Metal Queen is the guy or gal making stuff here is working so that means they are paying taxes and probably not collecting welfare, smoking crack and breaking into my house or car. If everything you buy or use is made outside your country you are in no position to assert yourself from outside coercion.
Just ask yourself, for example: as most medicines are made from imported precursors what would happen if China chose to ban export of these products to us or say India that also produces lots of medicines?
Example 2: Apparently lots of motor oil uses additives only produced in the middle east and all these plants, so what happens when your $100K pickup needs an oil change and you can’t get oil for it? (apparently this is starting to happen)
National security means more than the ability to defeat an enemy as it also includes the ability to still have a functioning economy in the event of a blockade or foreign aggression.
In 2007 you and I were suddenly too stupid to check tire pressure. By 2013 mass acceptance of that lie led to mandated nanny devices.
Dont buy anything built after 2012. You’ve been warned here for years.
Sadly, the only way this regulatory leviathan will be destroyed is by a total collapse of The System. That is, the Empire must die. With such a massive percentage of the population being employed by The State there will be much wailing and gnashing of teeth.
Unlike the Soviets the U.S. thinks itself a fine piece of work. The entirety of Soviet society knew it was all BS… not the U.S., however. You can hear it in the chants of USA USA USA and that Lee Greewood song which is blasphemous at best.
Oh, how I hope our collapse will be as peaceful at that of the Soviets but, I’m not holding my breath.
You’re absolutely right, Mark –
There will be much wailing and gnashing of teeth; this is what comes of getting at least half of the population dependent on government.
Yes unfortunately the “best case” scenario of a Soviet type collapse is no longer on the table. The “best case” now is probably French Revolution 2.0 complete with its own period of “the Terror” and its own rise of a Napoleon. France did recover for a period once that was over. The “worst case” is looking more and more like incineration in a nuclear fireball followed by Mad Max on steroids.
I likes me some Mel Gipson…