HEAVY METAL WORRIES
Automakers: Tariff will hike car cost
Automakers and U.S. allies yesterday warned that U.S. President Trump’s announced steel and aluminum tariffs would boost car prices and other goods by hiking commodities costs for manufacturers.
Honda Motor Co. Ltd. said in a statement that “imprudent tariffs imposed on imported steel and aluminum would raise prices on both domestic and imported products, thus causing an unnecessary financial burden on our customers.”
Ford Motor Co. said “despite the fact that Ford buys the vast majority of its steel and aluminum for U.S. production in the U.S., this action could result in an increase in domestic commodity prices harming the competitiveness of American manufacturers.”
Toyota Motor Corp. warned that while the “decision to impose substantial steel and aluminum tariffs will adversely impact automakers, the automotive supplier community and consumers as this would substantially raise costs and therefore prices of cars and trucks sold in America.”
Trump announced Thursday he will impose a 25 percent tariff on steel and 10 percent tariff on aluminum on national security grounds, with the goal of boosting the domestic steel industry. However, the U.S. does not currently produce enough steel to meet the needs of consumers, forcing imports that will be more costly under the president’s plan.
John Bozzella, who represent Global Automakers, a trade group representing foreign automakers, said “investments earmarked for new products and plants will instead be funneled to pay for rising steel and aluminum prices used in existing products and facilities.”
The president vehemently defended his plan in a series of tweets.
“Trade wars are good, and easy to win,” he tweeted. “We must protect our country and our workers.”
The plan was branded as “absolutely unacceptable” by Prime Minister Justin Trudeau of Canada, the United States’ biggest foreign source of steel and aluminum.
Trudeau stressed in his comments he was prepared to “defend Canadian industry” and that the tariffs would also hurt U.S. consumers and businesses because prices could rise.
Other countries also suggested they were prepared to retaliate if necessary.
The 28 countries in the European Union could respond by taxing goods that are core to the American identity such as blue jeans and Harley Davidson motorcycles, said Jean-Claude Juncker, president of the European Commission.
“I don’t like using the word trade war, but I can’t see how this isn’t part of warlike behavior,” Juncker told German media.