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Trump: Car Tariff Threat Is Best Way to Win Trade Concessions
President Donald Trump describes his threat to tax imported cars 20%-25% as “the big one” to force more favorable trade deals with other countries.
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President Donald Trump describes his threat to tax imported cars 20%-25% as “the big one” to force more favorable trade deals with other countries.
“We can talk steel (tariffs),” he tells Fox News, but says, “The big thing is cars.” The imbalance between imported and exported cars accounts for more than 20% of the U.S.’s annual $500 billion trade deficit.
Trump tells Fox News he is confident that his tactic ultimately will convince foreign carmakers to make more vehicles in the U.S. About 44% of new passenger vehicles sold in the U.S. are built elsewhere—about half of them in Canada and Mexico, according to the Center for Automotive Research in Ann Arbor, Mich.
Domestic and foreign carmakers alike are warning that hefty U.S. tariffs on imports will raise prices on all vehicles, cut rather that add jobs, and make the U.S. auto industry less competitive in global markets. That’s because even the most American-made vehicles, such as the Jeep Wrangler and Toyota Camry, contain at least 25% imported parts.
But Trump appears to be ignoring their comments. On Saturday, White House trade aide Peter Navarro told CNN cable new that a dire forecast of a shrinking General Motors Co. by CEO Mary Barra was deceiving the public with “smoke and mirrors.”
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