Seems that the ‘hurt’ Trump doesn’t care about could have a drastic effect on American Business and Jobs…
The American Auto Industry DOES…
President Trump’s early tariff moves have one thing in common: No matter the target, they all threaten to “blow a hole” in the auto industry, Ford CEO Jim Farley said Tuesday.
Why it matters: Whether the tariffs are national (Canada, Mexico) or material (steel, aluminum), the industry fears the same effect — millions of cars a year coming in from Asia and Europe with a sudden cost advantage.
The big picture: Thus far, no matter what Trump does with trade, it seems to hurt the auto industry more often than anyone else.
- Tariffs on Mexico and Canada? Most U.S. automakers sell cars with parts that cross those borders a half-dozen times or more during the assembly process, each time potentially incurring a levy.
- Tariffs on steel and aluminum? It’s literally what the cars are made of.
What they’re saying: “So far what we’re seeing is a lot of costs and a lot of chaos,” Farley said at a Wolfe Research conference on Tuesday.
- “Let’s be real honest long-term: a 25% tariff across the Mexico and Canadian border will blow a hole in the U.S. industry that we have never seen,” Farley said.
- “And frankly it gives free rein to South Korean and Japanese and European companies that are bringing one-and-a-half to two million vehicles into the U.S. that wouldn’t be subject to those Mexican and Canadian tariffs.”
- Farley also said he was headed to D.C. Wednesday to make his case.
- “It’s the second time I’ve been there in three weeks. They need to understand that there’s a lot of policy uncertainty here, but in the meantime, we’re scrambling to manage the company as professionals and we’re in a global race.”…
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