- The Trump administration believes that executives can be seduced by cars using tariffs as a payment cover through their huge prices Without risking the competitiveness of their vehicles that were built in the United States. This will be an effective way to balance sales loss from the definitions placed on their foreign imports. One of the executives said to Wall Street Journal. “So who pays for that?”
The White House fears that car manufacturers may benefit from a tariff next month to arrange the high prices on the plane on Americans looking to buy a new car.
ComeApril 3All new vehicles that were built abroad will be slapped with an import service of 25 %, which is likely to be transferred to American consumers. Since this affects nearly half of the cars sold in the country, companies like General Motors Increased customs tariffs can be used as a cover for Increase their prices On locally built vehicles as well.
To alleviate the threat of the comprehensive increase in car prices, President Donald Trump made a phone call to the administration from the best car manufacturer in the country, and warned them against using customs tariffs as an excuse to raise prices on local cars.
In that, Trump told CEOs that the White House will search inadequity in such a step, leaving some of them shaking and worried that they would face punishment if the prices of posters increase, according to what he said. Wall Street Journal a report Quoting people with knowledge of the call.
One of the newspaper executives told the newspaper: “Mathematics will tell you that we will cost us several million dollars.” “So who pays for that?”
The Trump administration did not respond to the journalism time to ask luck To comment.
The high prices of cars are a major factor behind the inflation of the epidemic
In the aftermath of the Kofid era The semi -conductors are a crisis This started in early 2021, when the non -provision of new cars sent prices by approximately 20 %, and even more for used cars, and to this day they remain high in the long run.
Together, they were a major driver behind the inflation attack after the birth that the Americans’ scars, helped to return to Trump to the Oval Office. The main promise of Trump’s campaign was a pledge to reduce the cost of living for ordinary Americans.
The White House pulled the department by claiming definitions is a tax on foreign countries, which is a type of tax authority only in this case that pays the rest of the world.
However, many of the economics profession have given up this claim, and American consumers will discover soon if they are right.
Once cars and cutting stocks are exhausted, the Trump tariff can add $ 4,711 to the cost of the car under the new bases, according to what he said appreciation The economist on the offer side, Arthur Lafer, is preferred by republican supporters.
Using these mathematics, car makers will be in a position to increase the price of a car created in the United States by $ 4000 and remain less than direct competition. Additional profit can help compensate for a possible sales loss for Mexican cars for companies such as General Motors and Stelantis.
Trump: The production of stagnant American cars is a threat to security
How did Trump impose such a sharp tariff from one side? The administration benefited from a legal loophole.
The White House said: “Cars and some auto parts are imported to the United States in such quantities and under such conditions to threaten the weakening of the national security of the United States,” adding that the American share of global cars production has stagnated over the past six years.
The saying that foreign cars that cross the border pose a threat to the richest country in the world and the most powerful is not a clear argument for many. Without this, Trump will need Congress to implement definitions, because the constitution puts the responsibility of definitions and trade within the framework of the government’s legislative branch.
The only exception to Al Qaeda is section 232, which allows the executive authority to strictly restrict imports when there is aft of national security.
Trump’s solution is to say that countries like Australia, which imports all their cars after closing the last local production site inLate 2017It is at risk strategically due to the loss of part of its heavy manufacturing.
The White House said: “About half of the vehicles sold in the United States are manufactured locally, a decrease that puts our local industrial base and national security at risk,” the White House said.
This story was originally shown on Fortune.com
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