Economy

Trump threatens 25-percent tariff on imported cars

Trump threatens 25-percent tariff on imported cars”

The rule had been operating in U.S. since 1960s and it has been boosting the United States vehicle production.

American International Automobile Dealers Association CEO Cody Lusk told FOX Business' Susan Li that GM failed to include in their restructuring announcement whether China's unfair trade practices affected GM's decision to cut 14,000 jobs over the next two years.

In a pair of tweets, Trump cited a long-standing 25-percent tariff on trucks as the reason trucks sell do so well for American automakers.

United States trade representative Robert Lighthizer has indicated that he was exploring the possibility of raising United States tariffs to match those imposed by China. Trump said Monday that he expected to move ahead with raising tariffs on $200 billion in Chinese imports to 25 percent from the current 10 percent, and repeated his threat to slap tariffs on all remaining imports from China. Regardless of whether suppliers and OEMs continue to import steel from overseas or buy it domestically, they are paying more for steel to build their auto bodies.

Trump's tweet comes as his administration is mulling whether to apply fresh tariffs on imported autos under national security grounds, as it did on steel and aluminum imports.

A similar tariff on auto imports would mean "many more cars would be built here" and "GM would not be closing their plants in Ohio, Michigan & Maryland", he tweeted.

"As the President has repeatedly noted, China's aggressive, State-directed industrial policies are causing severe harm to USA workers and manufacturers", Lighthizer said. The company has no plans to shift production of those vehicles to other markets.

Contradicting President Donald Trump's November 29 claim that it has announced a new plant in the USA, the automaker said it is only considering opening a second facility.

Trump has also harshly criticized GM for building cars in China.

China now imposes a 40 percent tariff on U.S. automobiles, while the United States has a 27.5 percent tariff on Chinese vehicles.

Volvo recently announced a reduction to its hiring plans and scaling back on the auto company's new assembly plant near Charleston, South Carolina, as a result of the impending higher auto tariffs. However, for Chinese manufactured cars this figure rises to 25 per cent.

The White House in recent weeks has reached out to the chief executives of German automakers including Daimler AG, BMW AG and Volkswagen AG about meeting to discuss the status of auto trade.



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