The U.S. auto industry on Monday urged President Donald Trump to not impose tariffs on imported cars and auto parts following a Sunday confidential report by the Commerce Department with recommendations for how to proceed, Reuters reported.
Trade organizations blasted the Commerce Department as well for keeping details of its “Section 232” national security report shrouded in secrecy, making it harder for the industry to react during the 90 days Trump has to review the information, the report said.
“Secrecy around the report only increases the uncertainty and concern across the industry created by the threat of tariffs.” – Motor and Equipment Manufacturers Association
The agency, the report said, said it was “alarmed and dismayed.”
“It is critical that our industry have the opportunity to review the recommendations and advise the White House on how proposed tariffs,” the group continued, adding “if they are recommended, (the proposed tariffs) will put jobs at risk, impact consumers, and trigger a reduction in U.S. investments that could set us back decades.”
White House and the Commerce Department representatives could not be reached immediately for comment.
Tariffs of up to 25 percent on millions of imported cars and parts, the industry has warned, would add thousands of dollars to vehicle costs and potentially devastate the U.S economy by slashing jobs, Reuters reported.
Administration officials have said the threat of tariffs on autos are a way to win concessions from Japan and the EU, the report said. Last year, Trump agreed not to impose tariffs as long as talks with the two trading partners were proceeding in a productive manner.
Former Missouri Gov. Matt Blunt, the president of the American Automotive Policy Council told Reuters: “We believe the imposition of higher import tariffs on automotive products under Section 232 and the likely retaliatory tariffs against U.S. auto exports would undermine – and not help – the economic and employment contributions that FCA, US, Ford Motor Company and General Motors make to the U.S. economy.”
Some Republican lawmakers have also expressed concerns about the tariffs.
Republican Rep. Jackie Walorski said she fears the Commerce Department’s report could “set the stage for costly tariffs on cars and auto parts,” Reuters reported
“President Trump is right to seek a level playing field for American businesses and workers, but the best way to do that is with a scalpel, not an axe,” she added.
– WN.com, Jack Durschlag
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