The MeidasTouch Podcast Summary

Episode Title: Trump TANKS US AUTO with Plan as SHARES PLUMET
Release Date: November 28, 2024

Hosts: Ben, Brett, and Jordy Meiselas
Podcast Description: The Meiselas brothers blend humor, brotherly banter, and unwavering support for democracy to deliver insightful and engaging news coverage. Their unique approach has garnered millions of followers, making them influential voices in political commentary.

1. Introduction to Trump's Tariff Plans and Market Impact

Timestamp: [02:54]
Speaker: Brett (B)

The episode opens with Brett discussing the immediate impact of President Donald Trump's proposed tariffs on the U.S. auto industry. Trump announced a 25% tariff on imports from Mexico and Canada, with an additional 10% tariff on imports from China, set to be imposed on day one. These tariffs have led to significant declines in major auto manufacturers' shares:

• General Motors: Shares down approximately 7.9%.
• Stellantis and Ford: Both experiencing notable declines.

Notable Quote:
Brett: “Trump is tanking the US auto industry shares and the big auto manufacturers are down significantly on the threat of the Trump tariffs.” [02:54]

2. Sequence of Events Leading to the Current Situation

Timestamp: [02:54]
Speaker: Brett (B)

Brett outlines a sequence impacting white autoworkers who voted for Trump:

1. Promises Made: Trump promised tariffs to protect jobs.
2. Broken Promises: Claimed tariffs would target foreign nations, not recognizing the interdependence of the North American auto industry.
3. Consequences: Job losses and declines in historic pension benefits as tariffs negatively affect U.S. companies with manufacturing plants in Mexico and other countries.

Notable Quote:
Brett: “You vote for Trump, you get promised Trump tariffs, which he lies to you and claim is a tax on the foreign country, which it's not. You lose your job and historic pension benefits.” [02:54]

3. International Retaliation and Its Implications

Timestamp: [02:54]
Speaker: Brett (B)

The discussion shifts to international reactions, particularly from Mexico. Claudia Sheinbaum, the President of Mexico, has threatened retaliatory tariffs in her letter to Trump, emphasizing the detrimental impact on shared enterprises:

• Major U.S. Auto Manufacturers in Mexico: General Motors, Stellantis, and Ford have significant operations in Mexico. Tariffs would jeopardize these establishments, leading to economic strain in both countries.

Notable Quote:
Brett: “Claudia Sheinbaum, the president of Mexico, threatened retaliatory tariffs... 'for every tariff, there will be a response in kind until we put at risk our shared enterprise.'” [13:32]

4. Broader Economic Impacts: Oil Industry and Electric Vehicles (EVs)

Timestamp: [02:54]
Speaker: Brett (B)

Brett addresses how the oil industry, historically supportive of Trump’s “drill, baby, drill” stance, is now undermining the future of electric vehicles (EVs):

• Overproduction of Oil: Oil supply exceeds demand, leading to pressures on prices.
• Threat to EV Industry: Oil companies aim to hinder the growth of EVs to maintain oil demand and profits.
• Impact on EV Tax Credits: Trump’s push to repeal the $7,500 EV tax credit could result in a 27% drop in EV sales, severely disrupting the auto industry’s shift toward electric vehicles.

Notable Quote:
Brett: “They want to make sure that Donald Trump kills the electric vehicle industry... because you can then artificially inflate the demand for oil to match the supply.” [02:54]

5. Impact on Auto Insurance Rates

Timestamp: [02:54]
Speaker: Brett (B)

The proposed tariffs would also indirectly increase auto insurance rates:

• Higher Replacement Part Costs: Approximately 60% of auto parts are imported from Mexico, China, and Canada. Tariffs would raise the cost of these parts.
• Insurance Premiums: Increased costs for parts translate to higher insurance claims, driving up premiums. The Insurance Information Institute reports an average premium jump of 20% in 2023, with expectations for further increases.

Notable Quote:
Brett: “Auto insurance is poised to become even more expensive under Donald Trump's plan to impose new tariffs on top US trading partners.” [02:54]

6. Union Response and Criticism of Trump

Timestamp: [18:55]
Speaker: Sean Fain, President of the United Auto Workers (UAW)

The episode highlights strong opposition from labor unions regarding Trump’s policies:

• Sean Fain’s Statement:
  “Every time Donald Trump gets a chance, he trashes our union and he trashes the working class. He comes to Michigan, he talks about he's going to bring back the auto industry. Let me tell you something. Donald Trump doesn't know shit about the auto industry.” [18:55]

Notable Quote:
Sean Fain: “Donald Trump doesn't know shit about the auto industry.” [18:55]

7. Counterarguments and Defense of the EV Industry

Timestamp: [14:53]
Speaker: Brett (B)

Brett defends the EV industry against MAGA Republicans’ attacks, emphasizing the lies used to undermine progress:

• False Claims: Assertions that federal funds for EV infrastructure are mismanaged or ineffective.
• Reality of EV Expansion: Under the Biden administration, significant investments have been made toward building out the national EV charging network, with the NEVI program’s $7.5 billion budget aimed at expanding chargers across states by 2030.

Notable Quote:
Brett: “You're ultimately attacking America's because you're attacking workers at EV plants by lying.” [14:53]

8. Conclusion and Call to Action

Timestamp: [19:24]
Speaker: Brett (B)

Brett concludes by reflecting on the irony of autoworkers voting against their own economic interests to support Trump, leading to the current downturn in the auto sector. He urges listeners to stay informed and engaged.

Notable Quote:
Brett: “It's wild to me that people would literally vote against their jobs. But you know, we're super. We're seeing it now.” [19:24]

Key Takeaways:

• Trump’s Tariff Plans: Proposed tariffs on Mexico, Canada, and China are severely impacting U.S. auto manufacturers, leading to significant stock declines.

• International Retaliation: Mexico’s threat of retaliatory tariffs threatens shared North American auto enterprises, exacerbating economic tensions.

• Oil Industry’s Agenda: Oil companies are actively working to undermine the EV market to sustain oil demand and profits, including efforts to repeal EV tax credits.

• Rising Auto Insurance Costs: Increased tariffs on auto parts are leading to higher insurance premiums, affecting consumers financially.

• Labor Union Opposition: UAW leadership is vocally opposing Trump’s policies, criticizing his lack of understanding of the auto industry and his detrimental impact on workers.

• Defense of EV Progress: The MeidasTouch hosts emphasize the importance of supporting the EV industry and counteracting misinformation spread by MAGA Republicans.

This episode provides a comprehensive analysis of the detrimental effects of Trump’s tariff policies on the U.S. auto industry, the increasing tension with international partners, and the broader economic repercussions, including the oil sector’s attempts to hinder EV advancements. The hosts underscore the importance of informed voting and support for policies that genuinely benefit American workers and industries.