Trump’s Import Tariffs On Iron And Steel Will Be Counterproductive
According to foreign media reports, all major auto trade organizations in the United States have said that the Trump administration’s import of steel and aluminum tariffs from the EU, Canada, and Mexico will not only make cars more expensive and threaten employment, but also delay the application of new technologies for safety and energy conservation.
Gloria Bergquist, a spokesman for the carmaker alliance, said: “These tariffs will lead to a rise in domestic steel prices, threatening the global competitiveness of the industry and increasing the cost of buying cars for users. Allowing vehicles to maintain civilian prices means increasing sales, creating more jobs in the car industry, speeding up fleet turnover, and improving fuel economy and safety. GM, TOYOTA, and Volkswagen are all members of the carmaker alliance.
International automakers, such as Korea’s Hyundai and Japanese Honda, say that President Trump’s decision to impose import tariffs on steel is disappointing and will go against it.
“Tariffs are also a tax, which will increase vehicle prices and damage the interests of American automakers and consumers. Any return of our trading partners will exacerbate the damage.” John Bozzella, the global automaker president, said in an email statement.
Although automakers buy most of the steel and aluminum from domestic suppliers, the alliance says that whether the metal is made in the United States or imports, the rise in tariffs will raise metal prices. GM and Ford both said the increase in raw material costs would reduce the company’s profits this year.
The May 31st tariff announcement marked a strong trade attack on the Trump administration’s closest allies in the United States, which had been trying to seek permanent tariff immunity.