Trump tariffs would be bad for the entire global auto industry, says Moody’s

Trump tariffs would be bad for the entire global auto industry, says Moody'sThreat of 25% tariffs on imports would disrupt the global supply chain and hurt car makers, parts makers and U.S. dealersPresident Donald Trump's threat to slap 25% tariffs on imported cars and car parts would be a credit negative, and not just for the U.S. but for every segment of the global automobile industry, from car makers to parts suppliers, dealers and transportation companies. Trump on Sunday issued new threats against America's trade partners, calling for them to remove barriers and tariffs, or face the consequences. Trump has already warned China that the U.S. will seek additional tit-for-tat tariffs on Chinese exports if China slaps retaliatory tariffs of its own on U.S. exports. Looking toward Asia, Japanese car makers would be forced to make big changes to their domestic production if tariffs are introduced. Chinese car makers will be mostly unaffected.

'It's a nightmare scenario': Trump tariffs would devastate auto industry, experts warn

As the Trump administration doubles-down on its threat to impose 25 per cent tariffs on auto imports, industry experts are warning that the move would devastate the North American auto industry and lead to job losses not only in Canada, but also in the United States. While it is yet to be seen whether the auto tariffs will come into effect, Trump seemingly reiterated his support for them in tweets over the weekend. David Adams, president of Global Automakers of Canada whose membership includes Toyota Canada Inc. and Honda Canada Inc., said the tariffs would present immediate difficulties for all auto manufacturers in Canada. You're not going to redirect current automotive production into the U.S. because of this."Many economist and auto industry experts agree that the immediate impact of the auto tariffs would be felt by American consumers. But she said the proposed 25 per cent tariffs "would be an entirely different consideration.

Bevy of Upstate auto suppliers push back on Trump administration's proposed tariffs

As it stated in Bevy of Upstate auto suppliers push back on Trump administration's proposed tariffsAnna B. Mitchell | Greenville NewsAnna B. MitchellFrom a Japanese bearings maker to a Detroit-based power-train manufacturer, BMW isn't the only global auto-industry player with Upstate ties to weigh in on the Trump administration's proposed tariffs on cars and car parts. In South Carolina alone, according to the chamber, $3 billion worth of the state's exports could be threatened. The U.S. Commerce Department will hold hearings on the proposed auto tariffs on July 19 and 20, and BMW is among a slew of manufacturers and industry groups that have requested time to speak on the matter. The sum impact on BMW of the tariffs, wrote BMW Vice President for Government Affairs Lisa Saums, could lead to "strongly reduced export volumes and negative effects on investment and employment in the United States." Auto parts manufacturers, he wrote, employ 4.26 million people — an 18 percent increase over 2012.

collected by :Catlin Logan