The Automotive Industry is Too Global for Tariffs

The 1960s through 1980s are far in the past and we need to allow them to stay in the past. While it’s certainly admirable to want to protect domestic employment and make sure automakers don’t outsource their work just because of the ability to pay lower wages, tariffs are certainly not the right way to address the automotive industry. As it currently stands, there are vehicles made by Buick in China that are imported to the US, vehicles made by Toyota in the US that wouldn’t be subject to a tariff, and parts that come from all over the world.

The World is a Smaller Place

While the current President has threatened to implement tariffs on vehicles that are built outside the US, the fact that many of the items we use every day are not made in the US at all. Look at the smartphone you use, consider the computer on your desk, take a look at the countertops in your home, and think about the clothes you wear. Many times, these items are built in other countries and imported to the US. The same is the case for vehicles and vehicle parts.

No Car Completely Built in America

Even if you’re an advocate for the American Made products, you’re not going to find any vehicle that’s 100 percent built in the US. Whether is some of the electronics, the airbags, the seats, or even the engine, no vehicle on the road today is completely built in mass numbers in the US. Imposing a tariff on vehicles and on vehicle parts that are imported would have a negative impact on the automotive industry, which has been experiencing higher sales numbers for the past few years than ever before.

The Tariff Impact

Currently, the proposed tariff is to add a twenty percent tax on vehicles coming from Japan, Europe and elsewhere while vehicles made in Canada and Mexico would be subjected to a 25 percent tariff. In addition to these increases in price, parts that are made in other countries could also receive a twenty percent import tax, which would cause the price of vehicles to increase significantly right away. With this tariff in place, the Chevrolet Equinox could cost you as much as $8,500 more just because of this additional fee, which has nothing to do with the actual vehicle itself.

This Has to be Stopped

The automotive industry and the American public won’t be able to absorb these higher prices that are simply based in a tariff that the current President chooses to implement simply because parts or vehicles are built outside the country. This won’t cause companies to bring their manufacturing back into the US; in fact, it could have the exact opposite effect. If you want to see how these new tariffs could have an impact on you for the future, take a look at the article in the Experian Link below. The increase in prices and costs will give you a great idea of why we don’t want or need the tariffs imposed.