The Trump administration has until Nov. 13 to decide whether to move ahead with proposed auto tariffs on European and Japanese producers. | Image: Kyodo News via AP
- The White House has until Nov. 13 to decide whether to slap 25% tariffs on auto imports.
- Republicans, in general, are against taxing auto parts as the cost passed on to consumers would be exorbitant.
- Higher auto costs accelerate the slowdown in U.S. car sales and put a dent in consumer spending – the primary driver of the U.S. economy.
The Trump administration has less than two weeks to decide whether it will go ahead with its proposed tariffs on Asian and European auto imports – measures that were first identified in May to allay concerns about national security risks.
The decision could have far-reaching consequences on the economy, not to mention President Trump’s reelection bid.
Decision on Auto Tariffs Looming
In just 11 days, the White House must decide whether it will slap tariffs of up to 25% on automotive imports from Japan and the European Union (EU). As The Wall Street Journal reports, the proposed duty would jack up the price of imported cars by $6,875. The average price of a vehicle sold in the United States would also rise by $4,400 as even domestic producers rely on foreign supply chains.
Moving ahead with the proposed tariffs could alienate President Trump’s Republican allies within Congress. Several GOP Senators have urged the president to avoid car tariffs, as the blowback among Republican voters could be swift.
Pat Toomey, a Republican Senator from Pennsylvania, said tariffs on auto parts would instigate a full-blown trade war as European manufacturers quickly retaliate.