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Tariffs pose a ‘significant threat’ to US economy say global automakers

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.”

 


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