Experts say auto tariffs would raise prices, cost jobs
DETROIT (AP) – If President Donald Trump delivers on threats to slap 25 percent tariffs on imported automobiles and parts, experts say it will cut auto sales and cost jobs in the U.S., Canada and Mexico.
Trump has asked the Commerce Department to study the tariffs on national security grounds, hoping to bring back jobs. But industry experts and analysts say the increased costs will raise prices, hurt sales and bring layoffs. Already the U.S. has imposed tariffs on some Chinese-made autos and parts, but extending them to Canada and Mexico would hurt the industry more.
LMC Automotive Senior Vice President Jeff Schuster predicts new-vehicle sales would fall by 1 million to 2 million per year. He says some people won’t pay the higher prices and will keep their current cars or buy used ones.