US tariffs could raise domestic auto prices by billions - Reuters
|As reported by Reuters, a group representing US automobile manufacturers will be telling the US Commerce Department on Thursday that imposing tariffs on foreign vehicles coming into the US could raise prices for domestic vehicles by $83 billion annually, which could threaten hundreds of thousands of jobs.
Key quotes
"The Alliance of Automobile Manufacturers, whose members include General Motors Co, Volkswagen AG and Toyota Motor Corp, said it plans to issue the warning at a public hearing on Thursday. “Higher auto tariffs will harm American families and workers, along with the economy” and “would raise the price of an imported car nearly $6,000 and the price of a U.S.-built car $2,000,” the group said in its testimony released on Wednesday. The European Union, Japan, Canada, Mexico, along with many automotive trade groups, Volkswagen, and the United Auto Workers union are among those scheduled to testify at the hearing.
The Trump administration in May launched an investigation into whether imported vehicles and parts pose a national security threat and U.S. President Donald Trump has repeatedly said he would quickly impose tariffs of 20 or 25 percent. The Commerce Department said Wednesday it had made no decisions and aims to complete the investigation “within a couple months.”
GM warned last month that higher tariffs could cost jobs and lead to “a smaller GM” while isolating U.S. businesses from the global market. Many automakers opted not to testify at the hearing because they believe Trump cannot be swayed from his decision to impose the tariffs. Some administration officials have suggested that his threats are a tactic to win concessions in trade talks, including North American Free Trade Agreement renegotiations.
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