Washington – Japanese automakers warned the US government on Friday that tariffs of up to 25 percent on imports of cars and auto parts would lead to higher prices for domestic car buyers.
While the Japanese government did not explicitly say that it would withhold its own tariffs, it warned that "rebalancing measures" by other countries could affect US production and agriculture. And Fiat Chrysler Automobiles has begun to forge its own plans to adapt its production worldwide as President Donald Trump escalates threats against levies.
Robert Lee, head of the Fiat Chrysler US Powertrain Coordination and member of the Group Executive Council of the automaker in an interview with Bloomberg News, said that the Italian-American automaker is developing contingency plans to change its manufacturing strategy when tariffs cost the company Increasing vehicle construction in the US
"It's large-scale contingency planning – supply-based planning, logistics planning, vehicle location planning," Lee said in an interview on Thursday. "That's not trivial, and it takes a while."
U.S. Pat. Ministry of Commerce conducts an investigation into national safety impacts by allowing imported cars to be brought to the US at Trump's request. When filing the application, Trump named a section of the federal law that allows the president to impose tariffs if he finds a security threat.
In comments to the Commerce Department, Toyota warned that tariffs were under 25 percent Trump administration's consideration would increase the cost of a Toyota Camry by $ 1,800.
"A potential duty on automobiles and parts would adversely affect all manufacturers, and the cost of imported vehicles, as well as domestically produced vehicles, will increase on imported parts," Toyota wrote. "To give a Toyota example, the Camry is built in Kentucky, and was the bestselling car in America for 19 of the last 20 years, and one of the best American cars you can buy, but the Camry also has about 30 percent. This means that the Camry would see a $ 1,800 cost increase (based on a price of $ 23,645), which is likely to be passed on to consumers in the form of higher prices. "
Mazda warned on Friday that a 25 percent duty on its products would force a revaluation of its US production plans and the ability to maintain a robust native dealer
"If the maximum 25 percent duty would apply to imported automobiles, as with other automakers, Mazda would bear a significant financial burden, "the company wrote. "It could also lead to changes in the company's plans to invest in its dealer network and new plant in Alabama and jeopardize the company's US business, which employs more than 30,000 workers."
"In addition, an increase in the company's car tariff due to the tariff and a resulting decline in revenue would negatively impact the company's ability to maintain its dealer network, which is more than 1.5 million Mazda owners. Vehicles in the US would cause inconvenience "Mazda continued.
The Japan Automobile Manufacturers Association, which represents Japanese automakers such as Honda, Toyota, Nissan, Subaru and Mitsubishi, warned Friday that tariffs on automobiles and imported parts to the United States "would have a serious negative impact on US consumers and workers, the US auto sector and the US economy. "
The group also questioned the imported idea Cars suggest a threat to national security that would justify tariffs. "Imported vehicles do not threaten the national security of the United States," JAMA wrote. "Rather, they increase the opportunities for users' diverse needs in terms of vehicle coverage, while creating new market demand, and have contributed to the sustained growth of the US auto industry, including car dealers."
The Japanese government said Friday, on which tariffs on cars and car parts threatened, would "put the global free trade system at great risk". Although Japan did not explicitly suggest retaliatory measures, "countervailing measures" by other countries could harm US manufacturing and agriculture. "
Japan emphasized its carmakers' contributions to the US economy, stating that Japanese automakers in the US produce" as many as 3.8 million cars, many of which are later exported. "Any US trade restriction" could have serious implications for more than 1.5 million jobs created by Japanese car companies in the US, "it said
The tariff investigation procedure, known as the Section 232 investigation into a commercial law passed in 1962, was recently approved by The Trump administration used to propose tariffs on imported aluminum and steel The Trump administration has argued that auto imports pose a similar threat. "Nuclear industries such as automobiles and auto parts are critical to our nation's strength," the White House said on 23 May in a statement announcing the start of the investigation.
The investigation and implementation may te last up to a year, when the example of the metal tariff is any indication
"The average price of an imported car is $ 23,200," said US Senator Orrin Hatch, R-Utah, last week in a hearing of the committee. "If the Department of Commerce would recommend a 25 percent fare for cars, it would recommend increasing the cost of an average imported car to $ 5,800 for an American family." To put this in perspective, the median household income is in the United States at just over $ 59,000, which means that about 10 percent of median household income could be erased solely by the extra cost of a single car. "
Bloomberg News contributed.
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