Opposing Proposed Auto Tariffs


In May, the Trump Administration announced the Department of Commerce would begin what’s called a Section 232 investigation on imported automobiles and motor vehicle parts, which under the Trade Expansion Act of 1962, gives the administration broad legal authority to impose tariffs on goods in the interest of national security.

While we understand the president’s focus on protecting manufacturing and other jobs and ensuring a level playing field with our international trading partners, we believe these tariffs will do the opposite. A twenty five percent tariff would have a devastating impact on the automotive and parts industry, because the industry is truly global. Many international nameplate vehicles are built in the U.S. while a number of U.S. nameplates are assembled outside our borders. And both assembly and repair parts for cars come from all over the world.

By the numbers: A 25% tariff on imported automobiles and auto parts would result in:

  • The loss of more than 700,000 jobs
  • A nearly $60 billion decline in U.S. gross domestic product
  • A rise in the price of an average vehicle by nearly $7,000
  • A decline in annual sales of as many as 2 million vehicles
  • Up to 10% increase in the cost of repairs and replacement parts