Automakers unite against proposed Trump tariffs

Automakers unite against proposed Trump tariffs
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Eight auto associations have banded together in what they say is an unprecedented coalition to oppose new tariffs President TrumpDonald TrumpSanders: Reinstating SALT deduction 'sends a terrible, terrible message' GOP braces for wild week with momentous vote One quick asylum fix: How Garland can help domestic violence survivors MORE has proposed on foreign autos, saying they represent a “significant threat” to the U.S. economy.

The coalition, calling itself the Driving American Jobs Coalition, says that the proposed import taxes would raise auto prices across the board by as much as $6,900, making it harder for consumers to buy cars, lowering sales for auto dealers, and leading to job losses in the industry. 

“The impact of these proposed tariffs are especially harmful to American jobs because they would hurt U.S. employment across the supply chain,” said Matt Blunt, a former governor of Missouri and the head of the American Automotive Policy Council, one of the eight groups in the new coalition.


That group includes the major U.S. automakers Ford, Chrysler and General Motors, which employ about 250,000 people in the United States.

Two of the eight associations, in particular, include foreign automakers, some of which have factories in the United States: the Association of Global Automakers, which includes Honda, Hyundai, Toyota, Subaru, Nissan and Ferrari; and the Auto Alliance, which includes Volkswagen, Volvo, Mitsubishi, Mercedes and BMW.

Trump has imposed 25 percent tariffs on imports of steel and aluminum from most countries exporting to the United States, using a section of law that allows the president to place tariffs on products for reasons of national security. He has threatened to use the same law to impose similar tariffs on cars and auto ports exported to the United States.

“The importation of motor vehicle parts is not a risk to our national security,” said Ann Wilson, senior vice president at the Motor & Equipment Manufacturers Association, another member of the coalition.

The coalition says it will focus its efforts on educating policymakers about the issue.

In Congress, several initiatives have been proposed to rein in presidential authority on new tariffs, but none has yet advanced.