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The Milwaukee-based company accuses European retaliatory tariffs of having transferred part of their production abroad.
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A Toyota Camry, assembled in Georgetown, Ky., Is painted to highlight his American pieces and his assembly on the floor of the Salon of the New York auto in April 2017. [19659005] (Photo: Brent Snavely, Detroit Free Press)

Prices for new cars and trucks could rise by several thousand dollars in the United States if President Donald Trump continues its threat to increase tariffs on imports.

That would be likely even if a particular car is manufactured in the United States because the analysts believe that car manufacturers would spread the cost of tariffs among several different vehicles to avoid disadvantaging their models manufactured in foreign markets.

companies, tremble at the thought of an increase in tariffs on imported vehicles, which could go up to 25% on the basis of threats from the president.

"If you put that kind of fare on a vehicle or an industry, p prices will certainly rise on average," said Jeff Schuster, senior vice president of forecasting at LMC Automotive, which tracks vehicle manufacturing. With current prices for new vehicles averaging about $ 32,000 after discounting, a 25 per cent rate would likely raise prices from approximately $ 4,000 to $ 5,000 per vehicle, at a rate of $ 25,000. Mr. Schuster

assumes that car manufacturers spend about half of the cost on customers and absorb the rest.

Reduce sales "significantly"

These increased prices have "the potential to significantly reduce sales, "according to an analysis report from Cox Automotive." A tariff is a tax that will be paid by US consumers, which will significantly increase the cost of every new vehicle sold in America, little tax. where it is built, "Mazda, which imports 100% of its vehicles sold in the United States. , said in a statement

To find out more: Volvo CEO hopes all vehicle tariffs will be erased, a possible victory for Trump

] Trump's European tariff threat could h German car manufacturers

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To know more about it: The customs duties of the European Union enter into force in Trump: how they will hit the American products [19459021

The Alliance for Automobile Manufacturers, a Washington-based interest group that represents automobile companies on political issues, attacked the US economy. Several automakers, including Toyota and General Motors, have warned of potential job losses in the industry.

The United States has 45 automobile assembly plants, each of which typically employs thousands of workers, in 14 states. If auto sales fall because of rising prices, or if auto companies are forced to downsize because of lower profits, it could undermine these factories.

62% of Americans believe the United States should consider According to a survey conducted by the Bucknell Institute of Public Policy, US consumers "are negotiating trade agreements". About 69% said the United States should consider "the overall benefit to the US economy".

Smoothing the Rules

"While we understand that the administration is working to standardize the rules, fares are not the right approach." Tariffs on autos and auto parts raise prices vehicles for all customers, limit consumer choice and encourage business partners to retaliate, "he added.

Even the assembled Toyota Camry in Kentucky, which Cars.com named the most-manufactured vehicle in the US in 2016, would face increased costs of $ 1 Yet the arguments in favor of fares go the same way: Europe imposes currently a tariff 10% on American cars, and the United States only receives 2.5% on European cars, and this imbalance is not fair. True, the US also grants a 25% duty on light trucks coming from Europe, although most of the vehicles imported from Europe are German luxury cars such as BMW, Mercedes and Audi. A level playing field could provide more incentives for automakers to make vehicles in the United States.

Moreover, it is impossible to say conclusively how each company will manage the rates. Example: Facing the increase in rates on American motorcycles sold in Europe, the Harley-Davidson Milwaukee said in June that it would absorb the additional cost of $ 2,200 per bike instead of $ 30,000. raise prices. To offset the additional costs, the company said it would move some of the US production, potentially eliminating US jobs.

Europe could scold

In 2017, the United States imported about 1.26 million vehicles a year in Europe. . That accounted for about 7% of US vehicle sales in 2017.

Trump supporters believe the president's threats could scare Europe. There are already signs that automakers have bent back in their previous support of the fare structure.

Volvo CEO Hakan Samuelsson said in the US today in an interview that he supported a non-tariff policy on vehicles between the US and Europe. . The elimination of auto rates would be "good for the industry and good for the United States," Samuelsson said.

Later in June, BMW CEO Harald Kruger reportedly told a German newspaper that 39, he also supported the removal of all tariffs between Europe and the United States.

Automakers may also be forced to consider adding more US production to guard against tariffs.

"This could push some manufacturers into the United States when they might not have thought otherwise"

But considering the overall price increase expected due tariffs, "the net loss of jobs would be expected," he said.

The Alliance, citing data from the Peterson Institute for International Economics, established job loss at 195,000 one to three years. Car manufacturers and dealers employ about 3 million Americans, according to the Bureau of Labor Statistics.

The Trump administration is considering tariffs under the premise that auto imports threaten national security.

"Imported vehicles increase options for diverse user needs," said JAMA, adding that they have created "new demand in the market, and they have contributed to the sustainable growth of the company. 39; US auto industry, including vehicle dealers, thus strengthening the US economy. "

Made 100% in the United States

The only large automotive company that did not import any vehicles in the United States is Tesla, whose only plant is located in Fremont, California. But Tesla is expected to build a new plant in China to meet the growing demand for its electric vehicles in the coming years.

Ford, among the leading automakers, is the leader in the percentage of vehicles assembled in the United States, according to LMC Automotive.

Ford imports only 21% of the vehicles that it sells in the United States Honda is second with 37% and General Motors third with 39%

In contrast, German automakers Volkswagen Group, BMW and Daimler import 84%, respectively 70% and 58% of the vehicles that they sell in the United States

But even assembled vehicles in the United States have parts manufactured abroad, reflecting the globalization of the automotive industry in recent decades. In fact, not a single 2018 model vehicle sold in the US gets 100 percent of its US or Canadian parts, according to National Highway Traffic Safety Inc.

Follow Nathan Bomey, a US journalist TODAY, on Twitter @ NathanBomey .

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