I think for most the significant inflation of prices of necessities or "halfneccesities" won't let much of a disposable income left for travelling. Already now for some time I hear on earnings calls of auto parts sellers, that spending went down not up. In theory people should spend more on parts and repair if they aren't buying new cars. But auto parts retailers say that many people are postponing even change of potentially very dangerous things like break pads....
Thats already from those haphazard Mexico tariffs earlier this year I assume?
Also as I understand it, semi's, pharmaceuticals, energy and critical minerals are exempt. And products that comply with USMCA are also exempt.
That means manufactured goods with a regional value content of 50-75% are exempt. I asked ChatGPT and it gave this list:
Automobiles: 75% RVC
Auto parts: Generally range between 60%–75%
Machinery and Equipment: Approximately 50%–60%
Consumer Electronics and Appliances: Around 50%–55%
Plastics and Chemical Products: Usually around 50%–60%
Will be interesting to watch which companies are close to this threshold already. Hard to figure this out probably unless they explicitly talk about it in upcoming conference calls.
I think for most the significant inflation of prices of necessities or "halfneccesities" won't let much of a disposable income left for travelling. Already now for some time I hear on earnings calls of auto parts sellers, that spending went down not up. In theory people should spend more on parts and repair if they aren't buying new cars. But auto parts retailers say that many people are postponing even change of potentially very dangerous things like break pads....
Thats already from those haphazard Mexico tariffs earlier this year I assume?
Also as I understand it, semi's, pharmaceuticals, energy and critical minerals are exempt. And products that comply with USMCA are also exempt.
That means manufactured goods with a regional value content of 50-75% are exempt. I asked ChatGPT and it gave this list:
Automobiles: 75% RVC
Auto parts: Generally range between 60%–75%
Machinery and Equipment: Approximately 50%–60%
Consumer Electronics and Appliances: Around 50%–55%
Plastics and Chemical Products: Usually around 50%–60%
Will be interesting to watch which companies are close to this threshold already. Hard to figure this out probably unless they explicitly talk about it in upcoming conference calls.