Trump car tariff would be ‘terrible day’ for consumers

If the Trump administration moves forward with its proposed tariff on imported vehicles and automotive parts, there could be serious consequences for the American consumer, according to the Association of Global Automakers.“Do you think our trading partners will stand idly by and just take this?” John Bozella, CEO of the trade group, asked during a FOX Business interview with Neil Cavuto on Friday. “We will face retaliation, which will increase the cost of producing and selling those 2 million cars we’re exporting around the world. It’s a very, very challenging environment here for automakers in the United States.”

In a statement, President Donald Trump said he instructed Commerce Secretary Wilbur Ross to consider an investigation under Section 232 of the Trade Expansion Act of imported cars, trucks and parts to determine their effects on America’s national security. According to The Wall Street Journal, the White House is weighing auto tariffs of up to 25%. The president has been a frequent critic of vehicle imports, lambasting automakers for building vehicles outside the U.S. and then shipping them home.

Industry groups including Association of Global Automakers say the tariff would hurt the U.S. consumer the most.

“If the government imposes these tariffs on imported cars, we’re going to have higher prices and fewer vehicle choices,” Bozella said. “It’s a terrible day for consumers if that in fact moves forward.”