Bloomberg reports that US automakers are making a last-ditch effort to convince US President Donald Trump to temper tariffs on the country's major trading partners. In particular, this week may see the States enact import duties on cars and their components. Experts cited by the agency warn that this move could spell disaster for the industry.
Ford Motor Co., General Motors Co. and Chrysler are actively seeking to exclude some low-cost auto parts from the list of products subject to tariffs. Executives from these companies have already met with White House and US Commerce Department officials to discuss the issue. So far, there has been little progress in securing any concessions, the publication added.
The reasoning behind the administration's decision to impose trade tariffs is to support American automakers. Still, analysts warn that these measures could backfire, potentially endangering the very industry they are meant to protect. Automakers in the United States often source components from foreign nations due to their lower costs. The proposed tariffs, which suggest a 25% charge on imported assembled vehicles, are likely to drive up production expenses and could cause consumer prices to jack up.