Many major automobile manufacturing and parts
associations have banded together forming a coalition to oppose tariffs on the
imports of vehicles and parts to the United States.
The Driving American Jobs Coalition, which consists of
eight trade associations with members across the United States and abroad warns
that the tariffs pose a ‘significant threat’ to the U.S. economy. It adds that a
25 percent tariff on imported automobiles and auto parts would result in the
loss of more than 700,000 American jobs; a nearly $60 billion decline in U.S.
gross domestic product; a nearly $7,000 increase in average vehicle prices; a 2
million vehicle decline in annual sales; and as much as a 10 percent increase
in the cost of repairs and replacement parts.
The Coalition says on its website that it understands
the President’s focus but “we believe these tariffs will do the opposite”
saying that the industry is truly global.
Mitch Bainwol, president and CEO of the Alliance of
Automobile Manufacturers, a group that represents U.S. manufacturers like Ford
and General Motors, as well as foreign companies like BMW, Fiat Chrysler,
Jaguar Land Rover, Mazda, Mercedes-Benz USA, Mitsubishi Motors, Porsche,
Toyota, Volkswagen Group of America and Volvo Car USA, said in a statement,
“All of the groups participating in this coalition understand the
administration’s desire to level the playing field and make better trade deals
for American workers and families. But we also agree that raising auto tariffs
is the wrong approach to achieving these goals.
“Higher tariffs will significantly raise the
price of all new cars and trigger a drop in sales and production — ultimately
resulting in job losses,” he said. “There is a much better way to accomplish
our shared objectives.”
Matt Blunt, president of the American
Automotive Policy Council and a former governor of Missouri, said “The impact
of these proposed tariffs is especially harmful to American jobs because they
would hurt U.S. employment across the supply chain.”