Carmakers Urge Trump To Spare Auto Parts, Imported Cars From High Tariffs
The US auto industry has urged President Trump to not introduce new tariffs on cars imported into the country or on automobile parts after a confidential report was given by US Commerce Department to the White House with recommendations about proceeding ahead. Some local trade organization protested against the Commerce Department’s decision to keep the details of “Section 232” shrouded in mystery that will make it tough for industry to react to it until it is reviewed by President Trump. Motor and Equipment Manufacturers Association has stated that secrecy about it creates uncertainty.
It expressed alarm and dismay that they were not able to review the recommendations of the department clearly and how they were proposing tariffs. The body insisted that more tariffs will put jobs at risk and impact customers negatively while also triggering reduction in US investments. US auto industry has warned that if tariffs of around 25 % are introduced on imported cars and spare parts it could add thousands of dollars to cost of vehicles thereby devastating US economy by leading to job cuts. Admin officials have declared that threats of tariffs on automobiles are a way of winning concessions from both EU and Japan.
President of American Automotive Policy Council Matt Blunt has stated that if tariffs are imposed under Section 232 than retaliatory tariffs will be imposed by all nations that import US automobiles affecting all large firms like Ford, General Motors etc. and will undermine the benefits that they bring to the US economy. Congresswoman Jackie Walorski stated that almost everyone expects that the Commerce Department has recommended raising costly tariffs on both imported cars and automobile parts. She emphasized that though the inherent idea behind protecting American industry and jobs while ensuring level playing field for other business firms is understandable it should be done finely like a surgeon’s scalpel instead of managing the problem like striking down a tree with an axe.