US Automotive Import Tariffs Will Destroy New USMCA Deal

Several automotive groups have warned that the introduction of tariffs on auto and parts is likely to undermine the new US-Mexico-Canada Agreement (USMCA). This is in line with the testimony of the auto trade groups at the hearing on the new deal, which should replace the NAFTA deal.

The implementation of steel and aluminum tariffs has already generated billions of dollars for the industry, they said. Manufacturing costs for US automakers were boosted by import tariffs on steel and aluminum. Section 301 tariffs on goods imported from China have also caused problems for the auto industry. The Trump administration's proposals for up to 25% tariffs on auto and auto parts, if implemented, could lead to industrial shocks. In addition, it is likely to affect the economy of the country, as well as lead to the loss of about 700,000 jobs in the United States.

John Bosella, president of the Association of Global Automobile Manufacturers, noted that the industry is under threat from additional tariffs on auto and auto parts under Section 232 issued by the Department of Commerce. Auto imports never threaten national security, he added. Recently, international automakers have been expanding their footprints in the US and throughout the North American region.

By the way, the Trump administration is threatening to impose tariffs, put pressure on the European Union and Japan to provide trade concessions to the United States.