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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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