Tariffs on Emira in US?

[Eagle7]

I'll be coming back to this post in 6 months and seeing if you are correct. This is an interesting (and very risky) experiment the current administration is playing with the world economy. In my limited amount of research on the history of tariffs in the US, I've yet to see an example where they resulted in a net benefit.

Obviously both sides agree government spending is out of control, it's just the methods on fixing it that are pissing people off. Folks love to say these are "emergency measures" to bring down the national debt, but never mention the $4.5 trillion in tax cuts this administration is planning, which dwarfs any amount of reduced government spending DOGE is attempting with their slash and burn total chaos approach. The deficit will go UP under the current plan as of today, just like it did in his first term.

The current administration has added and removed enough tariffs in his first 2 months that I doubt any foreign auto manufacturer is going to be interested in investing billions into domestic factories over the next 3.5 years due to these inconsistent threats. If they don't already have a significant footprint of expandable US factories already, they will most likely do what it's rumored that Lotus is doing, which is pausing imports and waiting it out, which helps no one.

I'm very glad I got my car last year, and very frustrated for the millions who will be negatively affected by these policies.

Starmer of the U.K. is currently in negotiations with Trump to work out the tariff situation which seems to be going well so far. Rolls Royce has announced they're building a plant in the U.S. Things will get worked out.

The tariffs that were added and removed were due to deals being made. This is going to continue. The U.S. is too big a market for other countries and their manufacturers to just ignore and lose business because of tariffs.

What most people don't understand is what the political establishment in D.C. means when they say "tax cuts" with regards to the budget. What they're actually doing is cutting the amount of INCREASE they were planning, so they can say they implemented tax cuts because they know what we think that means. They know when we hear that we think they're spending less, but that's not the case. They're always spending more, which is why the debt has been increasing so dramatically the last few decades. Don't judge this term by his first term. His first term was a school of hard knocks experience. This term shows he's graduated and not playing their game anymore.

 

[Lotustoronto]

Starmer of the U.K. is currently in negotiations with Trump to work out the tariff situation which seems to be going well so far. Rolls Royce has announced they're building a plant in the U.S. Things will get worked out.

The tariffs that were added and removed were due to deals being made. This is going to continue. The U.S. is too big a market for other countries and their manufacturers to just ignore and lose business because of tariffs.

What most people don't understand is what the political establishment in D.C. means when they say "tax cuts" with regards to the budget. What they're actually doing is cutting the amount of INCREASE they were planning, so they can say they implemented tax cuts because they know what we think that means. They know when we hear that we think they're spending less, but that's not the case. They're always spending more, which is why the debt has been increasing so dramatically the last few decades. Don't judge this term by his first term. His first term was a school of hard knocks experience. This term shows he's graduated and not playing their game anymore.

Rolls Royce is two companies - I think you are confusing the defense contractor / airplane engine manufacturer and the BMW owned auto manufacturer.

RR which is listed on the London stock exchange is a defense contractor which already has existing US workers. They supply airplane engines for Boeing / Airbus and the US military. They also make nuclear sub engines. Yes they are expanding US manufacturing footprint.

Rolls Royce Cars owned by BMW are not going to open a US plant.

 

[ShootingSight]

I think American cars ARE generally inferior to European or Japanese cars, because US manufacturers were soft on union negotiations back in the heyday when they were profitable. So labor and pension costs add thousands to each car. US manufacturers have to cost save (and quality shave) like crazy to be cost competitive. I remember a conversation (many years ago) with a VP from Ford, who claimed that it cost Ford $ 10,000 to make a car of the same quality that the Japanese made for $8,000, after the Japanese included the cost of shipping the car from Japan! Plus, Deming got into the Japanese auto industry a lot sooner than quality manufacturing was rolled out in the US.

However since there are LOTS of European cars that get subject to the US 25% tariff, versus relatively few US cars being exported to Europe, it would cost the Europeans a lot less to drop tariffs on US cars than to pay tariffs on cars exported to the US. It would also boost US sales in Europe slightly if the price came down by 20%, or would encourage US manufacturers to make Euro dedicated models where the 20% were plowed back into the quality or design, so they would be more competitive.

US sales in Europe are not depressed because of quality OR price OR road suitability, they are depressed because of quality AND price AND road suitability. Fixing all three would be great, but fixing any one still has a beneficial effect.

 

[daSchtick]

The net result will be, US cars will be 'cheaper' than imported alternatives but will be worse cars as the competition just won't exist that force feature and performance parity.

Exactly. Remember the 1970's Malaise era prior to foreign competition? Those cars were awful. I sort of feel the same about today's American cars, or should we say trucks, seeing as there are so few car models made. If you want a coupe, sedan or hatchback, you almost HAVE to buy foreign.

 

[Myemira2025]

Hi everyone. After exactly three years of waiting, I picked up my Emira V6 last Saturday. The dealer informed me that they are not closing new sales until they understand how tariffs will impact the MSRP. My car has parts from Canada, Japan, and the UK.

 

[VR1]

Rolls Royce is two companies - I think you are confusing the defense contractor / airplane engine manufacturer and the BMW owned auto manufacturer.

RR which is listed on the London stock exchange is a defense contractor which already has existing US workers. They supply airplane engines for Boeing / Airbus and the US military. They also make nuclear sub engines. Yes they are expanding US manufacturing footprint.

Rolls Royce Cars owned by BMW are not going to open a US plant.

You’re replying to a guy who still can’t figure out how these tariffs impact domestic automakers who produce cars in the United States - it’s a waste of your time.

It doesn’t take a rocket scientist to figure out a basic NPV calculation on tariffs vs domestic GDP contraction. short term revenues vs. long term GDP contraction due to lower consumer spending, supply chain inefficiencies and consolidation. Tariffs don’t exist in a vacuum.

 

[VR1]

What most people don't understand is what the political establishment in D.C. means when they say "tax cuts" with regards to the budget. What they're actually doing is cutting the amount of INCREASE they were planning, so they can say they implemented tax cuts because they know what we think that means. They know when we hear that we think they're spending less, but that's not the case. They're always spending more, which is why the debt has been increasing so dramatically the last few decades. Don't judge this term by his first term. His first term was a school of hard knocks experience. This term shows he's graduated and not playing their game anymore.

tell me you haven’t read the TCJA extension without telling me you haven’t read the TCJA extension.

Text of H.R. 137: TCJA Permanency Act (Introduced version) - GovTrack.us

Text of H.R. 137: TCJA Permanency Act as of Jan. 3, 2025 (Introduced version). H.R. 137: TCJA Permanency Act

www.govtrack.us

The TCJA was a real tax cut—it actually lowered tax rates for individuals and corporations, not just some imaginary reduction in a planned increase (this literally makes no sense to anyone who has a basic understanding of how our federal gov. budget is created). Meanwhile, government spending has kept climbing because, shocker, no one in D.C. wants to cut anything meaningful. The reason the deficit keeps blowing up isn’t because they tricked people into thinking taxes were cut—it’s because they cut revenue without touching spending. So yeah, if you keep spending more while bringing in less, the debt goes up. Groundbreaking stuff here!

 

[Dragoon]

Tariffs do have an impact on the Emira, and I believe we’re all capable of engaging in thoughtful, informed discussions here. It’s great to approach this with an open mind and explore policies together calmly and constructively. Digging into the facts and details ourselves—rather than relying solely on headlines—can help us better understand how this will affect us going forward. Let’s keep the conversation respectful. After all, we are fellow enthusiasts doing our best to communicate via text, which lacks in-person cues that often don't translate as intended. What's great about this forum is it's a collection of successful people worldwide. We might not be neighbors, but we are Lotus enthusiasts who want to enjoy an excellent driving machine. Looking forward to positive exchanges!

 

[GreyGhost_1776]

I had an in person meeting with Lotus of HOU on Saturday. They are certainly nervous and suggested being open to other builds located here in the states. I left the location thinking nobody really knows how this will play out. My confirmed order remains but basically now in holding pattern. I have decided to kick the can down the road and wait till I can make a more educated decision. Control the controllables! Thankfully a GT4RS sits in the garage for me to enjoy.

 

[meenboli]

I had an in person meeting with Lotus of HOU on Saturday. They are certainly nervous and suggested being open to other builds located here in the states. I left the location thinking nobody really knows how this will play out. My confirmed order remains but basically now in holding pattern. I have decided to kick the can down the road and wait till I can make a more educated decision. Control the controllables! Thankfully a GT4RS sits in the garage for me to enjoy.

"Thankfully a GT4RS sits in the garage for me to enjoy."

I think this is what we call a first world problem...

 

[Eagle7]

You’re replying to a guy who still can’t figure out how these tariffs impact domestic automakers who produce cars in the United States - it’s a waste of your time.

It doesn’t take a rocket scientist to figure out a basic NPV calculation on tariffs vs domestic GDP contraction. short term revenues vs. long term GDP contraction due to lower consumer spending, supply chain inefficiencies and consolidation. Tariffs don’t exist in a vacuum.

Lol ah yes, the ever-condescending lefty who can't read what's written because they're so focused on attacking to pretend they're superior that they launch attacks over something that was never said.

 

[Eagle7]

tell me you haven’t read the TCJA extension without telling me you haven’t read the TCJA extension.

Text of H.R. 137: TCJA Permanency Act (Introduced version) - GovTrack.us

Text of H.R. 137: TCJA Permanency Act as of Jan. 3, 2025 (Introduced version). H.R. 137: TCJA Permanency Act

www.govtrack.us

The TCJA was a real tax cut—it actually lowered tax rates for individuals and corporations, not just some imaginary reduction in a planned increase (this literally makes no sense to anyone who has a basic understanding of how our federal gov. budget is created). Meanwhile, government spending has kept climbing because, shocker, no one in D.C. wants to cut anything meaningful. The reason the deficit keeps blowing up isn’t because they tricked people into thinking taxes were cut—it’s because they cut revenue without touching spending. So yeah, if you keep spending more while bringing in less, the debt goes up. Groundbreaking stuff here!

Perhaps if you paid attention to what was ACTUALLY said instead of seeing things through the "I'm so superior that I'm going to crush and humiliate this person for something I think they said", you'd not demonstrate who you really are.

If you read what I actually said, I was talking about the FEDERAL budget which means all the money THEY'RE spending, not individuals or the private sector.

 

[Eagle7]

Rolls Royce is two companies - I think you are confusing the defense contractor / airplane engine manufacturer and the BMW owned auto manufacturer.

RR which is listed on the London stock exchange is a defense contractor which already has existing US workers. They supply airplane engines for Boeing / Airbus and the US military. They also make nuclear sub engines. Yes they are expanding US manufacturing footprint.

Rolls Royce Cars owned by BMW are not going to open a US plant.

I appreciate your post, but also take note that I did not say Rolls Royce automobiles, I simply said Rolls Royce. I merely posted the current news about the U.K. and what's happening with the tariffs, and that their prime minister is working with Trump right now to work out a deal.

 

[VR1]

Lol ah yes, the ever-condescending lefty who can't read what's written because they're so focused on attacking to pretend they're superior that they launch attacks over something that was never said.

You literally said:

What Trump's administration is doing right now is making trade balance corrections, as well as reducing the insane bloat and over-spending of our own government to reduce inflation and prevent the collapse of our currency. It's not about politics.

These tariffs don’t correct trade imbalances the way you’re suggesting. While they might reduce imports in the short term, they also dramatically increase costs for domestic manufacturers that rely on imported parts (if you think GM is going to open a manufacturing facility to start casting their own transmissions and turbochargers I have a bridge to sell you as no domestic automaker has the balance sheet to suddenly build out their own supply chain). These tariffs will lead to higher vehicle prices, lower profit margins, and ultimately, reduced consumer demand. This isn’t speculation—it’s what we saw with the DJT’s 2018-2019 tariffs, which increased costs for automakers and did nothing to reduce the trade deficit, which actually grew during that period.

These tariffs are not a tool for reducing government spending nor inflation. Federal deficits are projected to exceed $2 trillion annually starting in 2027, and while tariffs bring in some revenue, it’s a tiny fraction of that—completely negligible in terms of balancing the budget. Meanwhile, tariffs are inherently inflationary because they function as an indirect tax on businesses and consumers. Short-term tariff revenue is easily outweighed by the long-term GDP contraction caused by reduced consumer spending, supply chain inefficiencies, and industry consolidation.
If the goal is to strengthen U.S. manufacturing, targeted supply chain incentives and investment in domestic production capacity would be far more effective than broad tariffs which do nothing to address the core reasons as to why manufacturing has left the US.

 

[VR1]

Perhaps if you paid attention to what was ACTUALLY said instead of seeing things through the "I'm so superior that I'm going to crush and humiliate this person for something I think they said", you'd not demonstrate who you really are.

If you read what I actually said, I was talking about the FEDERAL budget which means all the money THEY'RE spending, not individuals or the private sector.

TCJA has zero mechanism to offset future increases in spending or address the long-term cost of government programs. The idea that lawmakers could pass tax legislation today and it will automatically result in cuts to future federal spending is completely unrealistic. The federal budget isn’t a simple ledger where tax cuts today translate into equivalent reductions in spending down the road like Monopoly - this is not how economics works.

Federal spending is driven by mandatory programs (Social Security, Medicare, Medicaid), defense, and interest payments on the national debt. These costs don’t magically shrink just because tax revenue is reduced. The TCJA didn’t come with any mechanism to slow down the growth of entitlement programs or defense spending, which are the real drivers of future deficits. There’s no ‘cut’ on spending built into the tax cuts as you are trying to imply. There are zero provisions in TCJA that mandate or even hint at any reductions in federal spending

On top of that, predicting the future federal budget isn’t straightforward. There are too many variables—economic growth, inflation, unforeseen global events. You can’t pass a tax law today and expect the budget to align exactly as planned 5 or 10 years down the road. And even if you could predict everything, the law doesn’t address the core issue, which is spending.

 

[Johnson]

…. His first term was a school of hard knocks experience. This term shows he's graduated and not playing their game anymore.

Desperately trying not to pick on you @Eagle7, but you should be aware that Trump isn’t playing nicely (or rationally) at all. Australia has zero tariffs on US imports, but Trump has implemented a 25% tariff on our aluminium and steel exports to the US. And he’s looking to add other tariffs to the mix.

Australia has always been a friend and ally, as has Canada and Mexico. This aggressive protectionism is absolutely a slap in the face. It’s going to take a lot to mend the relationship once Trump leaves office.

 

[Jump_Ace]

Desperately trying not to pick on you @Eagle7, but you should be aware that Trump isn’t playing nicely (or rationally) at all. Australia has zero tariffs on US imports, but Trump has implemented a 25% tariff on our aluminium and steel exports to the US. And he’s looking to add other tariffs to the mix.

Australia has always been a friend and ally, as has Canada and Mexico. This aggressive protectionism is absolutely a slap in the face. It’s going to take a lot to mend the relationship once Trump leaves office.

1,000%. Please don't hate all of us 'Muricans in four years. I know who is to blame, but I won't say anything (hint, the party you are thinking of, plus the oppositions lazy voters who didn't show up).


Jerome

 

[Lotus64]

Lol ah yes, the ever-condescending lefty who can't read what's written because they're so focused on attacking to pretend they're superior that they launch attacks over something that was never said.

Your posts have been eye opening! Thank you for sharing!

 

[Eagle7]

TCJA has zero mechanism to offset future increases in spending or address the long-term cost of government programs. The idea that lawmakers could pass tax legislation today and it will automatically result in cuts to future federal spending is completely unrealistic. The federal budget isn’t a simple ledger where tax cuts today translate into equivalent reductions in spending down the road like Monopoly - this is not how economics works.

Federal spending is driven by mandatory programs (Social Security, Medicare, Medicaid), defense, and interest payments on the national debt. These costs don’t magically shrink just because tax revenue is reduced. The TCJA didn’t come with any mechanism to slow down the growth of entitlement programs or defense spending, which are the real drivers of future deficits. There’s no ‘cut’ on spending built into the tax cuts as you are trying to imply. There are zero provisions in TCJA that mandate or even hint at any reductions in federal spending

On top of that, predicting the future federal budget isn’t straightforward. There are too many variables—economic growth, inflation, unforeseen global events. You can’t pass a tax law today and expect the budget to align exactly as planned 5 or 10 years down the road. And even if you could predict everything, the law doesn’t address the core issue, which is spending.

You don't say.... tell us more. And since you like to pull what I say out of context and quote it to pretend I'm saying something I'm not and didn't, how about these:

If you read what I actually wrote in context, you'd see that I was in fact talking about the Federal budget and Federal spending. The Congress has been using the term "tax cuts" as a deceptive slight-of-hand because they know that's what the public wants to hear, but in fact they're referring to the Federal Budget INCREASE they're proposing compared to what the budget was the prior year. Both parties do this. They propose increases, knowing that they're going to haggle the increase down to less than what was proposed, but it will STILL BE AN INCREASE IN SPENDING compared to the budget the year before. They call that reduction in spending increase from the proposed increase, a "tax cut" to manipulate public opinion because that's where the money comes from.

 

[Jimblob]

Whilst I understand Trumps America first ideology (not saying I like it but I broadly get it). I don’t get why you make such decisions without what looks to be much consultation or thought (remember the ban on flights for some countries during his last term?). It feels callous and more like bullying esp when dealing with lots of your long term allies.

No-one knows if they should start trying to build more manufacture plants (which would take years) or wait as the rules will change again in a few years (or maybe even weeks).

Who would staff all of this new production and at what cost? Who pays… Americans do… Labor in the states isn’t cheap and the USA has one of the lowest unemployments rates in world but surely Trump won’t want workers coming from other countries…

Heaven forbid welcoming in all of the now out of work & highly skilled Mexican car makers!

The UK and the USA actually have very similar goods exports to and from each other (within 4% of total goods - not services). So why slap a load of tariffs on the UK that damage trade and our long term “special” relationship?

It just makes no sense to me… and sadly I haven’t even got a GT4RS in my garage to cheer myself up with!