New Tariffs Threaten to Boost Prices of Cars and Parts
February 18 2019 - 02:38AM
Dow Jones News
By WSJ City
American car buyers are facing sticker shock as President Trump
weighs new tariffs on imported vehicles and auto parts. The
Commerce Department had until Sunday to submit an investigation
into whether imported cars and parts pose a national-security
threat under Section 232 of US trade law.
KEY FACTS
-- Trump has already voiced support for levies of 20%.
-- If the tariffs are imposed, then prices of cars from Japan, Germany and
South Korea would rise sharply.
-- That's assuming those countries don't receive exemptions.
-- But buyers of domestically produced cars could be shelling out more too
if tariffs are imposed on components.
-- The Commerce Department declined to comment on the report.
-- It gives Trump 90 days to announce tariffs or other barriers.
WHY THIS MATTERS
Detroit auto makers, foreign brands operating in the US and
auto-parts suppliers worry any duties would disrupt their
increasingly international supply chains or lead to retaliatory
tariffs on their exports. Car assemblers and part makers are
already paying more for steel and aluminum due to tariffs. Dealers
are worried about declining sales. Industry officials are not
expecting the report to be made public initially, and the
department will likely recommend several possible tools for the
president, including big tariffs on imported cars and potential
trade barriers on parts used in autonomous and electric vehicles,
they said.
A fuller story is available on WSJ.com
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(END) Dow Jones Newswires
February 18, 2019 02:23 ET (07:23 GMT)
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