The entire automotive industry is united against the idea of imposing new auto tariffs on imported cars and parts—a rare move that boxes in lawmakers and the Trump administration.
Bloomberg reported Thursday that numerous auto groups that represent major automakers such as General Motors, Honda, and Volkswagen Group are aligned with support from suppliers, mechanics, and dealership groups. The resounding message is not to levy new taxes on imported vehicles and parts, which research shows could have massive implications on profits and sales.
Vice president of federal affairs for the Alliance of Automobile Manufacturers, Jennifer Thomas, said, “Nobody in the auto industry supports a 25 percent import tariff.”
DOD Photo by Navy Petty Officer 1st Class Dominique A. Pineiro
On average, research shows the average price of a new car would increase $4,400 if the 25 percent tariff is enacted. President Trump ordered a national security investigation into the possibility of new tariffs under the Trade Expansion Act, section 232. The president has until May 18th to decide how he wants to respond to the findings.
Breaking down the tariffs’ effects, imported cars would, obviously, be hit hardest with a $6,875 increase in price. U.S.-made cars would see prices rise about $2,270. On an even smaller scale, the cost of changing brakes would rise $130 as the tariff affects imported parts as well. Supporting U.S. jobs could also be slashed by 700,000 as the tariffs force automakers, suppliers, and dealers to make tough cost cuts. The figures come from the Center for Automotive Research.
The lobby groups added these figures don’t account for any sort of retaliation foreign countries may impose on U.S. exports for parts and autos shipped around the world, which could lead to even more consequences. The current steel and aluminum tariffs have already added, on average, $400 to the cost of a new car from GM, Ford, and Fiat Chrysler Automobiles.
Comments
Prices will keep rising as long as the draft dodger is playing president. The mexican factories help keep prices low for americans.
Oh, looking, left-wing extremist Sean Symkowsk back with his anti-Trump tirades/ propaganda pieces. Oh, and is that the same “Tom Schuyler” who magically seems to appear when Sean writes something about President Trump (never at any other time or talks cars, just politics) and MAGICALLY posts a message a few minutes after Sean writes??? Sean, we see through your leftist propaganda bs. The people arent fooled by your fake news anymore.
Meanwhile, President Trump keeps on winning… American economy now best in a century, top-ranked in the world… Unemployment lowest in 50 years, including lowest ever Black, Hispanic and Asian unemployment rate. Stock market has now set over 120 records since Trump became President, which is amazing for pensions and 401Ks. Labour unions not striking and at peace with the federal government. “Russian Collusion” was proven by the Mueller investigation to be a hoax perpetuated by the fake news media and sore loser leftists. Latest polls show President Trump will easily win re-election in 2020…
Wow. So threatened by me you have to steal my handle?
Go back to raping squirrels.
Tariffs is the only tool to keep European Union countries from putting tariffs on US Goods as well as forcing EU companies to build factories in the United States instead of simply importing their finished products; thus Domestic automakers, dealers and suppliers should be thanking President Trump because without the threat of tariffs.. there would be no incentive for EU companies to build factories in the United States as they would simply import their cars from some factory in Eastern Europe where labor is cheap.
screw the European union.
Poor “Tom Schuyler” thinks it is great that we auto production moved to Mexico because “prices low for Americans.” Yup, they will need to be low as more Americans lose high quality jobs as GM moves production to Mexico. Not to mention all the R&D jobs lost, taxes not paid, factory construction jobs lost, and so on…Yet I would like to know “Tom’s” position on why foreign automakers are rushing back into the U.S. and building or expanding plants and production while GM is screwing over Americans….
But “Tom” is right about one thing, old Bill “The Rapist” Clinton dodged the draft by running of to England to study with the elitist rich types at Oxford instead of going to Vietnam.
That’s absolute rubbish. There are very good reasons to manufacture products, particularly large low margin products, in or close to the end market for those products. Having more of the cost in the end market currency will reduce the impact of FX fluctuations on the margin and profitability, ensuring you can continue to supply that market. Transporting things like cars is expensive, inefficient, unnecessary and results in longer lead times, making the producer less able to react to changing demand trends. So regardless of tariffs, producers of autos will always want to produce in their large markets. BMW in US, GM in China etc.
Remember when Sean was trying to scaremonger everyone on here telling us that the U.S. economy would collapse of President Trump continued his tariffs on China for unfair trade practices and American technology theft?
NEWS FLASH: The American economy is booming and continues to grow at record rates after President Trump kept tariffs on China…Auto companies are pouring back into the U.S. along with manufacturing as a whole with thousands of Americans being hired. Meanwhile the Chinese economy is falling fast with growth no at the lowest levels in 30 years. Next 10 years expected to be very low growth. Hence why the Chinese are offering huge concessions to the U.S. in trade which now allows American farmers excellent access to the once closed off Chinese market.
That’s the sound of WINNING once again. Love our President.
Looks like Sean Symkowski’s/ Tom Schuyler Trump Derangement Syndrome (TDS) must be flaring up again. Poor guy must have forgotten his meds once again or needs to up his dosage. Alex might need to adjust the co-pays on that amazing socialist health care benefits package he offers blogger staff.
Get well soon, Sean!
And here cometh the tariff man again….