Ford shares are trading higher Wednesday, as a group it is part of, the Automakers Alliance, has warned that any United States tariffs on imported European Union cars and vehicle parts would hurt the U.S. auto industry.
Trump told automakers at a meeting in the White House on May 11 that he was planning to impose tariffs of 20 percent or 25 percent on some imported vehicles, and sharply criticized Germany's automotive trade surplus with the U.S.
According to the administration, they feel the penalties will encourage domestic investment and automotive production and support USA... "In the end it will all even out - and it won't take very long".
The group added: "Rather than creating jobs, these tariffs would result in the loss of hundreds of thousands of American jobs producing and selling cars, SUVs, trucks and auto parts".
"Every U.S. production facility in the industry would be available in a national emergency, and every one of the 130,000 Americans who work for worldwide automakers can be counted on as well", the organization argues. Tariffs on autos and auto parts raise vehicle prices for all customers, limit consumer choice and invite retaliatory action by our trading partners.
Tariffs would substantially increase prices for consumers, and retaliation against US auto exports would be inevitable, said John Bozzella, the president of Global Automakers, whose members include manufacturers Toyota Motor Corp. and Hyundai Motor Co. and suppliers Robert Bosch GmbH and Aptiv.
"Automotive tariffs will make steel tariffs look like a company picnic", said Jackson, head of the nation's largest auto retailer.
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"We are already in the midst of an intense global race to lead on electrification and automation".
The strong, anti-tariff position taken by the two groups comes as something of an unusual attack by auto industry leaders on proposed US trade policies. "The increased costs associated with the proposed tariffs may result in diminishing the U.S.' competitiveness in developing these advanced technologies", it said.
It added that imports do not "threaten the national security of the United States, nor do we believe there is any national security or economic basis for restricting imports by applying protectionist duties".
In a separate news release, Bozzella said: "There is no national security justification for taxing imports of vehicles and parts or discriminating between global companies headquartered here or in allied countries". The deadline for public comments on the investigation is Friday.
"America does not go to war in a Ford Fiesta", the organization argued in regulatory filings, countering Trump's claims that foreign vehicle imports hurts national security. "America does not go to war in a Ford Fiesta", they added.
Reuters said, both automotive trade groups cited a study by the Peterson Institute for International Economics that the cost to United States jobs from the import duties would be 195,000 jobs and could be as high as 624,000 jobs if other countries retaliate. Indeed, Toyota operates 10 manufacturing plants in the U.S. We are an exemplar of the manufacturing might of America.
Alabama Governor Kay Ivey, a state that produced almost 1 million vehicles and 1.7 million engines built by foreign automakers past year, urged the Commerce Department not to invoke the tariffs.