Why Hitting the Gas on Car Tariffs Could Stall Everyone
MIN READAug 13, 2018 | 08:00 GMT
If the United States provides no exemptions when imposing a 25 percent tariff on auto sector imports, it could cost over a million U.S. jobs and even plunge the country into a recession, especially amid China's retaliation against previous U.S. tariffs.
Today, much of the Western world is holding its collective breath, wondering what comes next as U.S. President Donald Trump threatens to pummel the global auto industry with tariffs on imports. In 2017, the United States imported $350 billion worth of vehicles and parts, most of which came from Canada, Mexico, the European Union, Japan and South Korea – all U.S. allies. But just as he did with steel and aluminum, Trump is threatening to levy tariffs totaling as much as 25 percent on the vehicles and parts of his country's closest allies as part of a Section 232 national security investigation. In doing so, Trump is threatening to upend seven decades of consistent integration in the global automotive industry – something that could have grave ramifications for all....