It’s price controls by mandate. Dust off those WIN buttons.
It’s one bad policy decision after another says the Wall Street Journal in Trump to Auto CEOs: No Price Increases.
One bad policy decision inevitably leads to another to compensate for the damage, and that’s already true of President Trump’s new 25% tariffs on auto imports. The Journal’s news pages reported late Thursday that Mr. Trump threatened auto executives on a call this month not to raise prices if he went ahead with his tariffs.
At least he recognizes in private that his tariffs aren’t cost-free for business or consumers, which wasn’t previously clear. But like his Democratic predecessors, he apparently thinks he can browbeat CEOs to cover up for them.
Readers may recall how Joe Biden demanded that oil and gas companies reduce gasoline prices even as his policies discouraged investment in new production that could lead to more supply and lower prices. His regulators then targeted oil and gas executives, such as Pioneer Natural Resources founder Scott Sheffield, who criticized his anti-fossil fuel policies.
During last year’s campaign, Kamala Harris proposed letting the Federal Trade Commission dun food companies that raise prices too much. Mr. Trump responded by noting that “after causing catastrophic inflation, Comrade Kamala announced that she wants to institute socialist price controls.”
Well, now Mr. Trump seems to be imitating Comrade Kamala to prevent catastrophic price increases from his auto tariffs. It’s hard to predict the magnitude of the price impact, though Ford Motor CEO Jim Farley warned last month that “long term, a 25% tariff across the Mexico and Canada borders would blow a hole in the US industry that we’ve never seen.”
Lower-priced sedans, which are mostly imported from Mexico, South Korea and Japan, will be hit hardest by the tariffs. But auto makers may spread the tariff costs across other vehicles, including popular pick-ups and SUVs made in the U.S. If higher prices reduce demand, the companies may lay off workers. Will Mr. Trump threaten those that do?
Businesses were optimistic when Mr. Trump returned to the Oval Office because they thought he understood how markets work. They may have been mistaken.
Get Out the WIN Buttons
Anyone who though Trump understood anything about markets or trade was badly mistaken.
It will be amazing to watch the hypocrites excuse these price controls while blasting Harris for the same thing.
US Debt Will Grow to a Staggering 156 Percent of GDP by 2055
On March 27, 2025 I commented US Debt Will Grow to a Staggering 156 Percent of GDP by 2055
If Congress extends the TCJA tax cuts with no offsetting savings, the deficits will surge.
On March 29, 2025 I noted Fed Chair Jerome Powell Revives the Words “Transitory Inflation”
Please note Powell revived from the dead, the word “Transitory”.
Are Powell and Trump on the same? If so, are price controls and massive deficits transitory to Trumpian Nirvana?