Car dealers have a stern warning about the risks from Trump’s tariffs

business news

  • US car dealers warn President Donald Trump’s proposed tax on imported European vehicles would raise prices for consumers. 
  • “More tariffs won’t help American businesses or families,” says Cody Lusk, president of the American International Automobile Dealers Association.
  • Trump has vowed not to back down despite opposition from his own party and members of his cabinet. 

US consumers stand to lose big from President Donald Trump’s proposed tariffs on selected imported goods, the American International Automobile Dealers Association (AIADA) said, arguing “the result will be more expensive vehicles” for Americans.

In particular, the group is concerned about Trump’s threat to place a tax on imported vehicles from Europe, which goes beyond a broader threat to impose sharp tariffs on steel and aluminum imports.

AIADA says a tax like this “already exists from a trade war fought in the 1950s.” The association said consumers effectively pay a 2.5% tariff on cars and a 25% tariff on light trucks imported into the US.

“More tariffs won’t help American businesses or families,” AIADA President and CEO Cody Lusk said in a statement.  “Tariffs are taxes, and the result will be more expensive vehicles — effectively erasing any positive change Americans saw from the 2018 tax reform bill. Auto sales, which are already slowing, will be hamstrung by these tariffs. 

The resulting trade war will undoubtedly spread to include other industries, including American agriculture. No one wins a trade war.”

Stocks, which took a hit on Trump’s announcement last week, rallied Monday as investors hoped his trade threats would prove more bluster than action. Wall Street is praying the president might somehow be talked out of implementing the tariffs given intense opposition from all quarters, including Fed officials, members of his own party and even from inside the cabinet.

US automaker stocks were hit particularly hard on the news, and at least two major firms, GM and Toyota put out statements saying they already purchase most of their steel in the United States. 

Trump maintains he is not backing down. He has said the steel and aluminum tariffs will apply broadly and not exempt any countries.

“People have no idea how badly our country has been treated by other countries,” he said. “By people representing us who didn’t have a clue.”

SEE ALSO: Trump’s own pick for Fed chair said ‘the tariff approach is not the best approach’ — and it highlights the dangers of a trade war

Join the conversation about this story »

NOW WATCH: The science of why human breasts are so big

Комментариев нет

Добавить комментарий

business news
Bitcoin’s rough patch looks like the Nasdaq during the tech bubble — except it’s moving 15 times faster

Bitcoin fell as much as 70% from its mid-December high through its recent early-February low. The cryptocurrency’s price chart mirrors that of the Nasdaq Composite Index during the dotcom bubble era, but there’s a catch. Historical fluctuations in the Nasdaq should provide a template for how bitcoin will trade going …

business news
‘China is not afraid’: China strikes back at Trump with new tariffs as trade fight escalates

President Donald Trump announced new tariffs on $50 billion worth of Chinese goods on Thursday. Chinese officials strongly condemned the move. “China does not want a trade war with anyone,” said the Chinese Embassy in Washington, DC. “But China is not afraid of and will not recoil from a trade …

business news
Bill Ackman reportedly cashes out of his Nike investment after making about $100 million

Pershing Square CEO Bill Ackman has cashed out his stake in Nike after making about $100 million, according to Dow Jones.  Ackman recently exited a years-long bet in Herbalife that reportedly cost him hundreds of millions of dollars.  The apparel maker is set to report earnings after the market close …