American Consumer Market Just Too Valuable – India Agrees to Align with Trump Tariff and Trade Terms


Posted originally on CTH on May 5, 2025 | Sundance 

India was under pressure by both sides, the USA and China.  Part of the Trump Indo-pacific plan was a geopolitical trade strategy aligning the United States with India.  However, Beijing was pressuring India to reject alignment with the USA and form a mutually beneficial trade block with China.

India has rejected the Chinese plan and chosen to follow the USA model because access to the U.S. consumer base is the stronger economic influence.

The result? Once again, sad Panda.

INDIA – India has sided with the United States (US) President Donald Trump on the trade war with Xi Jinping of China. Reports indicate that Indian Prime Minister Narendra Modi is ready to accept all conditions of the US in a trade deal.

Trump raised tariffs on most Chinese imports to 145%, citing the need to reduce the trade deficit and encourage domestic manufacturing.

In retaliation, China has imposed 125% tariffs on US goods and implemented non-tariff barriers, including export controls on critical rare-earth elements.

Indian Prime Minister Narendra Modi visited Trump in the White House in February 2025.

After the meeting, the leaders announced they would pursue a “framework” for greater cooperation.

“ Prime Minister Modi and I have agreed that we will be in negotiations to address the long-running disparities,” Trump said.

“But really, we want a certain level of playing field, which we really think we’re entitled to.”

On the other hand, Modi said India and the US will have a MEGA partnership for prosperity.

He said India is working towards a Viksit Bharat, which in the American context translates into MIGA.

“An excellent meeting with Trump at the White House. Our talks will add significant momentum to the India-USA friendship,” Modi said.

[…] Modi’s move is despite persuasion by Yu Jing, spokesperson for the Chinese embassy in India, for Modi to join forces with the Asian country.

Jing said India and China should stand together against US tariff actions as the two largest developing nations. (more)

German Automaker Smartly Shifts Business Plan in Response to Tariffs – Mercedes Will Make More Vehicles in USA


Posted originally on CTH on May 5, 2025 | Sundance

In a decision to position for long-term tariff avoidance, Mercedes Benz will shift production of their GLC (compact SUV) to Tuscaloosa, Alabama, away from Bremen, Germany.

Previously, the German automaker had shifted manufacturing of large SUV lines to the USA to avoid the pre-existing 25% ‘chicken tax.’  However, the smaller and less expensive crossover types were still made in Germany and shipped to the USA.  As the shipping vessels returned to Germany, they would take some of the SUV inventory back with them.  It was the most cost-effective solution, given the nature of the tariff situation.

Now, with larger import tariffs against all vehicles, Mercedes has shifted their business model to essentially an outcome where all USA marketed/sold vehicles will be manufactured in the USA, and all EU marketed/sold vehicles will be manufactured in Germany.

(Via Daily Mail) – Mercedes-Benz will shift production of one of its vehicles to Tuscaloosa, Alabama by 2027. The German luxury carmaker’s move is the latest response from an industry caught in the expensive crosshairs of President Donald Trump’s 25 percent tariffs.

The decision marks a potential win for Trump’s protectionist trade agenda, which aims to boost US manufacturing by slapping steep tariffs on foreign-made goods. But there are many complicating factors.

The company didn’t say which model would move to America. Instead, it said the production of a ‘core segment vehicle’ will move stateside.

Many experts predict the move will impact the production of the GLC, the company’s best-selling car in the US.

The compact SUV is built in Bremen, Germany.

Mercedes reported selling 64,163 units in the US in 2024, up 58 percent from the year before. (read more)

On the other hand, BMW is still screwed because it made the prior decision to build all their new fancy auto plants in Mexico.

Within the U.S. market, Mercedes Benz now has a strategic advantage over their German rival, BMW.

Happy Cinco de Mayo


Posted originally on CTH onMay 5, 2025 | Sundance

[BACKGROUND STORY]

“In the November election, 7 in 10 Hispanic voters in Florida said they favored reducing the number of immigrants who were allowed to seek asylum in the U.S. when they arrived at the U.S. border, according to AP VoteCast. That was in line with Florida voters overall.

In 2024, Trump won not just Miami-Dade County but the central Florida counties of Seminole and Osceola, where many Venezuelans have immigrated, and made inroads in heavily Puerto Rican areas of Pennsylvania. He also flipped several South Texas border counties that were Democratic bastions for decades.

What initially catapulted Trump’s popularity in South Florida was his stance on the socialist governments that many exiles and their families fled, along with his focus on boosting growth and reducing prices. But at a rally in Miami days before announcing his third White House bid in November 2022, Trump said that, contrary to the belief of some, Hispanics liked his vows to crack down on illegal immigration.” (more)

What happens to the wages of legal Latino Americans when the illegal Latinos are removed from the supply/demand labor equation?

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