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  • U.S. tariffs could raise auto prices by $83 billion: trade group

    WASHINGTON (Reuters) - A group representing major automakers will tell the U.S. Commerc

    e  Department  on  Thursday  that  imposing  tariffs of 25 percent on imported cars and parts 

    would raise the price of U.S. vehicles by $83 billion annually and cost hundreds of thousands 

    of jobs. 


    The  Alliance  of  Automobile  Manufacturers, whose members include General Motors Co 

    (GM.N),  Volkswagen  AG  (VOWG_p.DE)  and  Toyota Motor Corp (7203.T), said it plans

    to issue the warning at a public hearing on Thursday. 


    “Higher auto tariffs will harm American families and workers, along with the economy” and 

    “would raise the price of an imported car nearly $6,000 and the price of a U.S.-built car 

    $2,000,” the group said in its testimony released on Wednesday. 


    The European Union, Japan, Canada, Mexico, along with many automotive trade groups, 

    Volkswagen, and the United Auto Workers union are among those scheduled to testify at 

    the hearing. 


    The Trump administration in May launched an investigation into whether imported vehicles 

    and parts pose a national security threat and U.S. President Donald Trump has repeatedly 

    said he would quickly impose tariffs of 20 or 25 percent. The Commerce Department said 

    Wednesday it had made no decisions and aims to complete the investigation “within a couple 

    months.” 


    The auto industry has banded together in a full-scale campaign to oppose the tariffs, with 

    companies warning of slower auto sales due to higher prices, lost jobs as well as reduced 

    spending on self-driving cars. 


    Toyota North America Chief Executive Jim Lentz told company dealers in an email seen by 

    Reuters that “Toyota and the entire auto industry is facing a very dangerous public policy 

    threat – a potential 25% tariff on all imported autos and auto parts – and we need YOU to 

    help us win this battle!” 


    GM warned last month that higher tariffs could cost jobs and lead to a “a smaller GM” while 

    isolating U.S. businesses from the global market. 

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