According to Reuters, the Detroit Regional Chamber and Michiganauto appealed to Trump for the protection of the complex international supply chain of the automotive industry against the harmful fragmentation, which weakens its global competitiveness.
Clogged duties, but not for cars
According to the association’s statement, which includes the largest car manufacturers, such as General Motors, Ford, Hyundai, Stellantis and Toyotathe industry in Michigan and the supply chains and employees who maintain it will still have to deal with uncertainty and disturbances caused by customs. These groups also noticed that, apart from the cloisers, he also left Trump to cars In force, duties in the amount of 25 percent On aluminum and steel, which also affect car manufacturers.
Reuters reminds that the US president said on Wednesday that he was considering granting some American companies to be released from the obligation to use customs tariffs. However, it was not visible what companies meant and whether there are car manufacturers in this group. On Wednesday, the Governor of the Michigan State, Democrat Gretchen Whitmer appealed in Washington to release the automotive industry from customs.
The black future of the car industry
A consulting company from Detroit, which deals with the automotive industry, forecasted at the beginning of this week that This year, sales of cars in the USA and Canada may fall by 1.8 million vehicles And it will persist at a reduced level for the next decade, if the global trade war escalates.
Donald Trump introduced 25 % import duties on cars from Mexico and Canada on April 3while new duties for car parts in the amount of 25 percent They will become effective from May 3. However, car manufacturers who follow the terms of the contract between the USA, Mexico and Canada can count on Relief in the form of deducting the value of goods from the USA. It is too small for the industry to develop as dynamically as before.
According to Detroit Regional Chamber, BRanza Carowa gives the economy of Michigan about $ 300 billion a year. Over 1,000 car parts suppliers operate in this state.
Source: Reuters
