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General Motors
Co.
warned the Trump administration that tariffs on vehicle imports would hurt its competitiveness, cost jobs in the United States and would result in "a smaller GM."
In comments submitted to the US Department of Commerce on Friday, the administration suggested that auto imports would increase its costs and eventually result in higher prices for consumers. In turn, this could hurt the demand for cars, which could result in job losses at automakers and parts suppliers, GM said
.
Toyota Motor
Co.
which warned that automobile rates "would have a negative impact on all manufacturers", increasing the cost not only of imported vehicles, but also of cars Built in the United States In 1965, the White House asked the Commerce Department to consider whether tariffs of up to 25 percent on imported vehicles could be used for reasons of national security, citing a 1962 law authorizing emergency trade sanctions. in case of threat. The administration used the same rationale to impose duties on imports of steel and aluminum in the spring.
Donald Trump
Time and time again, it has pushed American and foreign automakers to build more vehicles in America, which would create jobs in the rust belt states that helped elect it. He also complained of an uneven playing field. The EU applies a 10% tariff on vehicles imported from the United States. China imposes a 25% duty on US cars.
GM's comment on the proposed rates is one of the biggest impacts yet on the pricing proposals of the major auto companies, all of which face the potential for significant tolls on imported vehicles or components.
"We directly support the economic strength of the nation" and "the United States security posture," GM said in his statement of about 1,000 words. The company said US trade barriers on vehicles and auto parts would increase business costs and hurt its competitiveness against foreign automakers, especially against declining automakers. immigration country. Last year, about 36% of GM sales in the United States were imported, or about 1.1 million vehicles, according to the LMC Automotive research firm. More than 400,000 of these trucks were large pickup trucks built in Mexico, such as the Chevrolet Silverado, GM's biggest seller and the biggest contributor to its bottom line.
GM also highlighted his record of creating jobs, a key goal of Trump's trade. policy. GM said it employs about 110,000 workers in the United States and has invested more than $ 22 billion in 47 plants since its collapse of the government in 2009.
GM and Toyota have warned that US consumers would wear the weight of the fee increase. Toyota said its Kentucky-built Camry sedan is made with about 30 percent foreign parts. Toyota said in its comments to the Commerce Department that the base fare would be in the order of $ 1,800, a base price of about $ 23,600. "In the end, this cost will likely be passed on to consumers in the form of According to the Japanese automotive giant, Toyota imported about 54% of its vehicles sold in the United States last year, either about 1.3 million units, according to the CML.
The Alliance of Automobile Manufacturers, the main lobby of the industry A group from Washington said this week that it has a right to 25% import would increase the average price of an imported vehicle by $ 5,800, or "a tax of nearly $ 45 billion" for US consumers.
About 7.9 million states United States were imported last year, according to LMC.
Trump repeatedly threatened tariffs on European car imports due to escalating trade tensions with the Union "Build them here!" said the president in a tweet last week first, promising a 20% customs duty on all vehicles coming from Europe.
In a statement to the Commerce Department on Friday,
BMW
AG
Reporters Without Borders says it has helped the US trade position by producing more than four million vehicles since 1994 at its plant in Spartanburg, South Carolina. More than 70% of the vehicles are exported, added the company. a "net exporter" because it ships more vehicles built in South Carolina to foreign markets than the number of cars that it imports for sale in the United States
"BMW has reduced the US trade deficit of more than one billion dollars "thanks to exports,
The United Auto Workers' union was a group that supported the administration's investigation into the Impact of auto imports on national security, the appellant "for a long time". The union did not approve tariffs, preferring instead a "targeted" approach in its statement to the Department of Commerce. For example, the UAW said that the massive influx of investment from the auto industry in Mexico siphoned off US jobs and "weakened our national economy," while the trade imbalance with Canada, a high-wage country like the United States, is modest. 19659003] In a statement, Secretary of Commerce
Wilbur Ross
He said his department had sent about 2,500 comments on the tariff investigation, with public hearings scheduled for July 19 and 20. The contribution "will allow us to make our recommendation the best informed to the president," he said.
Write to Mike Colias at [email protected]
Appeared in the print edition of June 30, 2018 as "automatic rates could increase costs, hitting the jobs of USA, GM says. & # 39;
