Trump Tariffs On Auto Parts Is Going To Be HUGE
Nearly half the vehicles sold in the U.S. are imported coming from plants in Canada and Mexico. The current administration does not like this fact and said that the imports of automobiles and auto parts are a threat to the national security. They have taken action about this and have launched an investigation into whether tariffs are needed on the imports. Trump says that “core industries such as automobiles and automotive parts are critical to our strength as a nation”.
During a meeting with top American automaker executives, Trump said he is going to push for an increase in the production of vehicles produced in the US. In addition to that Trump also criticized the European Union auto imports and threatened a tax on these imports. Trump is seeking a new tariff of 20 to 25 percent of these imports. Critics of this move fear that countries will strike back and impose trade sanctions of their on for a threat to their national security.
If Trump is able to follow through with his plans it will be huge for US automakers. Ford, General Motors, and Chrysler have been struggling lately. Ford Stock had been plummeting lately and in February hit an all-time low at 10.24 a share. General Motors revenue has been falling in the past year and Chrysler American made cars have been reporting low sales numbers. Many plant employees of these companies have been laid off and some plants have been shutting down completely. With a boost that Trump is promising this might put light back into struggling companies. This would also lower unemployment in the U.S. especially in Detroit where the unemployment is 7.8%. In addition, this will boost GDP with more products being built in the US. Overall this tariff would be a good thing for the United States. https://www.msn.com/en-us/news/politics/trump-administration-explores-tariffs-on-autos-auto-parts/ar-AAxISpK