John Bozzella, head of Alliance for Automotive Innovation, believes that the effects of tariffs imposed on Canada and Mexico by the administration of Donald Trump will feel the entire automotive industry. Bozzella represents all main car manufacturers in the USA, except for Tesla. The members of the Association are: General Motors, Ford, Toyota, Volkswagen, Hyundai and Stellantis.
In the opinion of Bozzelli and most car manufacturers The price of some vehicle models will increase by up to 25 percent, And the negative impact on vehicle prices and their availability will be felt almost immediately.
The automotive industry beats the alarm
Reuters reminds that car manufacturers have already beat the alarm before. According to them, Trump’s duties will disturb the integrated supply chain in North America, which has been operating for over 25 years. Some car parts may cross the border several times before they are finally installed in the car.
“You can’t simply move automotive production and supply chain overnight – said Bozzella, adding that customs in North America can ultimately increase the costs for consumers before the workplace returns to the country.
Duties will be destroyed by the car industry in the USA
“Since the industry is strongly integrated in North America, the duties will put the flagship brands of the company Stellantis, such as Chrysler, Dodge, Jeep and RAM, In an adverse competitive situation in relation to Korean, Japanese and European importers, “said the car manufacturer Stellantis in an e-mail, to which the Reuters agency reached.
The agency also reminds that last month CEO of Ford Jim Farley warned that 25 percent Carmage and Canada will “destroy” the car industry in the USA in Mexico and Canada.
Trade unionists talk about the end of “free trade disaster”
Meanwhile, the United Auto Workers trade union praises Donald Trump’s actions.
Reuters quotes the position of trade unionists who are happy that the American president is taking up Definitely actions “in order to end the free trade disaster, which fell like a bomb on the working class“” We are looking forward to working with the White House to shape car tariffs in April to bring benefits to the working class, “said the trade union.
