President Trump’s trade war is hitting consumers’ wallets, according to the Association of Global Automakers CEO John Bozzella, who said that the new NAFTA deal with Mexico and Canada is already increasing the cost to produce cars in the U.S.
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Bozella said vehicles will only get more expensive.
“Some people estimate that number to be as much as $400 per vehicle,” he told FOX Business’ Connell McShane on “Cavuto: Coast-to-Coast” on Monday. “On every vehicle.”
In March Trump imposed a tariff of 25 percent on steel and 10 percent on aluminum. The new trilateral trade deal, named the United States-Mexico-Canada Agreement, implements stricter rules-of-origin requirements on raw materials, which Bozzella says will result in higher U.S. auto prices.
“It’s the price of U.S. milled steel that’s going up,” he said. “In other words, the U.S. companies have protection in the form of these tariffs against a foreign steel and they’re raising prices. This is affecting everybody.”
According to Bozzella, the U.S. exported 2 million cars and truck last year and in his opinion exports will drive the auto industry.
“We need more trade and more trade talks, not barriers to trade. Our future in the U.S. auto industry is in exports,” he said. “We are at 17 million units of annual sales — that’s probably a peak. We don’t really know what the other side of that peak looks like.”