Quote:
Originally Posted by Clocker
We get 16% of our imported steel from Canada, and 2% from China. Do you really think that steel users like Ford Motors are buying cheap, poor grade steel?
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The short answer is yes.
In part, because of strict CAFE standards forced on US car makers to produce lighter cars for better fuel economy.
But let's say Ford, et al, use the highest grade steel imaginable, which I do not believe they do but I'll play along.
In a typical car, there is roughly between $500-700 worth of steel. What is the typical price range of 'family' and 'economy' type of models ... $15,000 up to $25,000?? Honestly, I am not exactly sure but I believe it's a range we can agree on.
So, a 15 per cent increase in imported steel costs to Ford, et al, should increase that sticker price by only $75 to $105.
The increases due to this tariff are pennies and nickels when compared to the final price of the car.
