Analysis: Trump's Proposed Auto Tariffs Would Reduce U.S. Auto Jobs - BodyShop Business

Analysis: Trump’s Proposed Auto Tariffs Would Reduce U.S. Auto Jobs

A new analysis by the Peterson Institute for International Economics concluded that if Trump raises U.S. duties to 25 percent on all automobiles and auto parts, there could be a loss of 195,000 U.S. auto industry jobs in a one- to three-year period.

President Trump has reportedly been considering raising U.S. duties to 25 percent on all automobiles and auto parts because of national security. A new analysis by the Peterson Institute for International Economics concluded that if Trump did carry out the duties, there could be a loss of 195,000 U.S. auto industry jobs in a one- to three-year period.

This analysis assumes that there would be no exemptions for any country (even NAFTA) and shows that the action could affect more than $200 billion in U.S. imports.

In addition, the report showed that if other countries retaliated with tariffs on the same products, a total of 624,000 U.S. jobs would be lost, and 5 percent of the auto and parts industries’ workforce would be displaced. This second scenario would hurt U.S. exports more, but total impact on the U.S economy in either scenario would be small.

The Trump administration and the Department of Commerce initiated a national security investigation on auto and parts products on May 23.  According to the release, the results and recommendations are needed by mid-February 2019 but could be filed sooner.

Automobile imports alone that would be covered by the proposed raise in duties total $208 billion, and that’s not including auto parts. In 2017, the U.S. imported more than $143 billion in automotive parts, according to the International Trade Administration.

Table courtesy of Peterson Institute for International Economics

The report concluded that because the U.S. is reliant on imported parts and other inputs that aren’t produced in the country, and don’t have an easily made domestic substitute, these proposed tariffs would raise the cost of these parts and other domestic production costs. This would result in more expensive products for consumers and, in turn, create a lower demand for them. To read the full report, click here.

In response to this investigation, the Auto Care Association is seeking input and data on how imports of automobiles and automotive parts impact your business and your customers. Contact Aaron Lowe and Paul Fiore if you wish to provide information for the association’s submission.

The Federal Register notice outlines a comment and hearing process for interested parties to submit/present information pertinent to the investigation.

The Department of Commerce will recommend actions if it is determined that automobiles and/or automotive parts are being imported into the U.S. in quantities that threaten to impair national security.

Important dates:

  • June 22 – Due date for written comments, requests to appear at the hearing and a summary of expected testimony
  • July 6 – Due date for rebuttal comments
  • July 19 – 20 – Public hearing at the Department of Commerce (Washington, D.C.)

You May Also Like

Corby’s Collision Center: Since 1942

Bentley (Bud) and Evelyn Corby started Corby’s in a little gas station in Honeoye Falls, N.Y.

Corby’s Collision, Inc. has been repairing vehicles since 1942 when Bentley (Bud) and Evelyn Corby started their automotive venture in Honeoye Falls, N.Y., in a little gas station on North Main Street. In 1954, the business moved to its present location at 1212 Rochester St., where they continued repairing vehicles and selling Arctic Cat and Ski Doo snowmobiles. In 1985, Larry and Bonnie Corby purchased the family business, expanding in 1996 when they opened a second location in the Canandaigua area as Corby’s Precision Collision at Ontario Imports in the Ontario Mazda building. In 1999, the Canandaigua business was moved to its present location at 2460 State Route 332. Now, as the third generation, Leslie (Corby) and Kelly Craft continue to carry on the family tradition.

CIF Announces Enterprise as Repeat Annual Donor

Enterprise has donated for the fourth consecutive time at the Urgent Care (second highest) tier.

NABC Donates Recycled Ride to Central Georgia Mom

The NAB), GEICO and Five Star Collision Center-Wimbish recently donated a refurbished vehicle to a deserving mother of four.

NABC Donates Recycled Rides at NORTHEAST Show

The NABC, GEICO, Mountain View Auto and Collision Center of New Jersey donated two refurbished vehicles at the recent NORTHEAST Show.

Crash Champions Expands in Idaho

Crash Champions has announced the acquisition of Addison Collision Repair in Twin Falls, Idaho.

Other Posts

Auto Care Association Welcomes GAO Report on Vehicle Repair Restrictions

The Auto Care Association is renewing its call for Congress to advance federal Right to Repair legislation that protects independent business owners and consumers.

ProColor Collision Welcomes First Shop in Montana

ProColor Collision Gallatin Valley is operated by Robert Rinta and Simon Gratch, who both served honorably in the Montana National Guard.

Association News

The latest association news appearing on bodyshopbusiness.com.

Podcasts of the Week

A review of some of the latest podcasts from BodyShop Business.