According to the Automotive News Network, industry officials said on Friday that global automakers and vehicle suppliers are urging the Trump administration and the U.S. Congress to use the EU and other allies as exempt targets for imported steel and aluminum products. Understand that this latest U.S. tariff policy will take effect at the end of this month.
The new US tariff policy sparked hot debates or a list of specific products and countries that Trump signed on Thursday that allows importers to file exemptions from taxation. The Trump administration has now made it clear that Canada and Mexico can exempt imports. tariff.
This policy has a greater impact on American automakers because the Trump administration will have to make decisions on matters such as the North American Free Trade Agreement currently under negotiation, and it will also determine the performance standards of auto fuel economy for 2025.
Analysts believe that, like Trump’s tough demand for North American free trade agreements, this tariff policy may have a drastic effect on the global automotive industry.
U.S. government officials and others have stated that the impact of the increase in the prices of imported steel and aluminum products is modest.
In an unpublished letter to the Trump administration on February 27 this year, the American Automotive Policy Council warned that imposing tariffs on these metals could increase the annual cost of the American auto industry. The committee represents the American Automotive Policy Council of General Motors, Ford Motor and Fiat Chrysler Automotive.
Reuters quoted the author’s letter and reported that the tight supply may lead to further increase in prices. This will eventually be reflected in the price of the car. The increase in selling price will inevitably reduce car sales, ultimately affecting the production of steel and aluminum products. Business.
According to U.S. industry officials, the biggest panic is that if Trump implements an import tariff policy on Europe, then Europe as a counterattack will inevitably impose tariffs on European products such as American cars, bourbon whiskeys and cow pants.
If so, then Trump will certainly impose tax on cars made in Europe. But in the end, the substantial increase in costs caused by the trade war may squeeze the profitability of American-made auto products and force automakers to relocate their origins to other regions.
John Bozzella, head of Global Automakers representing Toyota Motors, Hyundai Motor, Honda Motors and other automakers, said that the group has advised US policymakers that import tariff policies are not meaningful.
John Bozzella said that the American market exports 2 million cars each year, of which 250,000 are exported to Europe each year.
John Bozzella stated on Friday: 'This policy will make the U.S. build cars uncompetitive. If Europe is to counterattack, it will inevitably affect the exports of U.S. car companies, and the auto industry will eventually only face a double lose.'
Ann Wilson, senior vice president of government affairs at the Motor & Equipment Manufacturers Association, told Reuters that hundreds of car suppliers are expected to propose exemptions, but this must wait until the policy is implemented.
The group representing 100 auto suppliers called on tariff policies to be dangerous, urging the Trump administration to remove more products before implementing the policy.
Hakan Samuelsson, CEO of Volvo, said: “Everyone will be defeated. Since our entire system is based on free trade, Volvo is no exception. Consumers will also be victims, because these products will be more expensive. High, including cars. '
Didier Leroy, president of Toyota Motor Europe, warned: 'If there is taxation, it will push up the price of the product, and the ultimate buyer will be the consumer. No one will be the winner.'
PSA Peugeot Citroën CEO Carlos Tavares stated that if so, his plans for a 10-year return to the US market are facing a great deal of risk. He said: 'Taxation is an important part of our decision to enter the market. The reference factor, because we are taking a gradual approach. Our original plan was that we could consider outsourcing the production of cars to markets outside the United States if sales were not high at the very beginning, but if we implement a tariff policy, We may reevaluate this strategy.'
In an interview with Automotive News, Volkswagen’s CEO Hinrich Woebcken stated: “The tariff policy may have an impact on Volkswagen’s plan to build a pure electric vehicle factory in Chattanooga. Because the public will import steel and aluminum products, the tariff policy will Increase our costs. Of course, this plan has not yet been finalized and we have some other options.
Hyundai Motor also warned that the Trump administration is best to think about how many cars the United States will produce before making a decision. Hyundai Motors spokesman Jim Trainor said: 'Changing the existing tariff structure may have implications for the current US automobile production and further expansion. Negative effects. The imposition of tariffs on imported steel may increase production costs, burden US consumers with high prices, and inevitably affect market demand.
U.S. Treasury Secretary Steve Mnuchin said in an interview with CNBC radio on Friday that the US Department of Commerce may soon announce specific regulatory measures regarding how the exemption assessment process operates.
The US Congress plans to hold a hearing on this matter. Some Republicans plan to establish a legislative process for this tariff policy. Some enterprise groups hope to make adjustments in legislation, but experts say that since Trump cited the 1962 trade expansion The content of the law, which allows him to have great power in the collection of tariffs, that is, the import of products can be taxed for national security considerations.
One problem that needs to be solved now is if the origin of steel products imported from Canada and Mexico is from other countries, then whether there is a need for taxation. Automobile manufacturers believe that finished products produced with foreign steels should not be used in this policy.
