The subject of tariffs has been a hot one in many industries since President Donald Trump began imposing them months ago, and that’s certainly true of the automotive industry. In some regards, domestic automakers welcome such levies as they have the potential to give them a competitive advantage versus foreign-based entities, but on the flip side, those same automakers build vehicles in other counties that are sold in the U.S. and obtain at least some parts and materials that are subjected to tariffs as well. Now, a Ford backed lobby group is speaking out on those levies for a different reason.
According to Automotive News, the American Automotive Policy Council – which represents Ford, General Motors, and Stellantis – was among more than 40 trade groups and associations that penned a letter to the U.S. Commerce Department recently criticizing “unpredictable expansions” of tariffs, including some pertaining to aluminum and steel that occurred roughly one month ago. The letters states that those tariff expansions were “implemented without adequate notice,” increasing costs for U.S.-based businesses.
“At a time when many are dealing with fragile supply chains, global competition and inflationary pressures, this process creates additional uncertainty that risks slowing growth and deterring investment in the United States,” the letter reads. Importers “need reasonable time to implement changes and clear guidance on how to comply,” it added, arguing that tariff expansions undermine the predictability companies count on to make investments.
As Ford Authority reported earlier this week, the Commerce Department is mulling the idea of imposing tariffs on additional imported auto parts amid national security concerns expressed by some within the American automotive industry. It seems as if some domestic automakers have asked the administration to add tariffs to additional parts on these grounds via a separate letter from automotive trade associations representing U.S. and foreign automakers and auto parts firms.
It is worth noting that the U.S. Court of Appeals for the Federal Circuit ruled early this month that President Donald Trump has no legal right to impose sweeping tariffs on a variety of nations without additional approval, but for now at least, those levies remain in effect.
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Well, isn’t that a BFO!
(Blinding Flash Of The Obvious)
Finance/Market/Investment analysts the world over have said this ever since the glorious, tardious Smoot-Hawley Act disaster of the past century. History is already being brutally honest and just as unkind. I’d say how interesting it would be to hear what our great-grandchildren will have to say about these tariffs, but AI will tell us, instead.
All American cars should be made in the US.