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INDUSTRY INSIGHT

Ross says it's 'Too Early' to say if U.S. will

Impose Auto Tariffs

By David Shepardson

Commerce Secretary Wilbur Ross said by $83 billion annually and cost hundreds to near-record sales in recent years.
Thursday it was "too early" to say if the of thousands of jobs.
United States would impose tariffs of up Jennifer Kelly, the UAW's research director,
to 25 percent on imported cars and parts, Automakers say there is "no evidence" that noted that U.S. auto production has fallen
a suggestion that has been met with harsh auto imports pose a national security risk, from 12.8 million vehicles in 2000 to 11.2
criticism from the industry. and that the tariffs could actually harm U.S. million in 2017 as the sector has shed about
economic security. 400,000 jobs over that period, with many
The department opened an investigation jobs moving to Mexico or other low-wage
in May into whether imported autos and They are also facing higher prices after tariffs countries.
parts pose a national security risk and were imposed on aluminum and steel.
was holding a hearing on the probe on "We caution that any rash actions could
Thursday, taking testimony from auto trade General Motors said in a submission have unforeseen consequences, including
groups, foreign governments and others. that it would face a stark choice if Trump mass layoffs for American workers, but that
goes ahead with tariffs: increase prices for does not mean we should do nothing," she
“President Tump does consumers and hurt sales, or swallow the said, suggesting "targeted measures."
understand how indispensable tariff cost and move plants. Either way, it
would mean job cuts and lower wages for Many firms that sell vintage vehicles also
the U.S. automobile industry employees, and “a smaller GM” with “a warned that the tariffs could devastate the
is,” Ross said. “This industry reduced presence at home and abroad,” the industry because many older cars need
has been a major driver of biggest U.S. automaker said. parts that are only made outside the United
States. Polaris Industries Inc warned that
innovation. It provides the The Alliance of Automobile Manufacturers, off-road vehicles could also be inadvertently
backbone for our industrial whose members include GM, Volkswagen covered by the tariffs.
economy that supports AG and Toyota Motor Corp., warned on A study released by a U.S. auto dealer group
the impact of the tariffs.
millions of Americans with warned that the tariffs could cut U.S. auto
high paying jobs.” "Higher auto tariffs will sales by 2 million vehicles annually and
harm American families cost more than 117,000 auto dealer jobs, or
The secretary, however, hinted that the and workers, along with the about 10 percent of the workforce.
administration might use technology as the
national security rationale for protecting economy" and "would raise President Donald Trump has repeatedly
domestic producers. the price of an imported car suggested he would move quickly to
impose tariffs, even before the government
nearly $6,000 and the price launched its probe.
“The industry is central to the advancement
of new technologies such as autonomous of a U.S.-built car $2,000,"
vehicles, fuel cells, electronic motors, said Jennifer Thomas, a vice "We said if we don't negotiate something
battery storage, composites and other new president for the group. fair, then we have tremendous retribution,
materials and advanced manufacturing which we don't want to use, but we have
processes,” Ross said. tremendous powers," Trump said on
She noted that the U.S. exports more than Wednesday. "We have to -- including cars.
Ross's remarks came at the start of the $100 billion of autos and parts annually to Cars is the big one. And you know what
public hearing on the proposed auto tariffs. other countries, while "there is a long list of we're talking about with respect to cars and
products that are largely no longer made in tariffs on cars."
A group representing major automakers the U.S., including TVs, laptops, cellphones,
told Commerce on Thursday that imposing baseballs, and commercial ships." The Commerce Department said earlier this
tariffs of 25 percent on imported cars and week it aimed to complete the investigation
parts would raise the price of U.S. vehicles No automaker or parts company has "within a couple months." n
endorsed the tariffs, and they have pointed

GIADA Independent Auto Dealer AUGUST 2018 | 21