Two business groups, the Detroit Regional Chamber and Michauto, say that The introduction of duties on imported cars and parts will lead to a drastic increase in prices, disruptions in the supply chain And problems for the state of Michigan, which is focused on automotive.
“An increase in costs would cause significant disruption in the entire supply chain and, perhaps the most important,, would lead to a significant increase in vehicle prices for American consumers” – they stated in a letter cited by the Reuters agency, the Detroit Regional Chamber and Michauto, the Automotive and Mobility Association.
Duties is a blow to Michigan
According to organizations, in Michigan, the pain felt by working class citizens will be deep, because one in five jobs in this state is associated with motoring. There are over 1000 car parts suppliers in Michigan.
In the assessment of both groups, the duties will also harm the state economy. According to Detroit Regional Chamber, The car industry gives the economy of Michigan about $ 300 billion a year.
The automotive industry employees will suffer
From fragments of the letter to the president to which Reuters cites it, it appears that the proposed Ptariff olicita will increase prices, a decrease in consumer demandand in effect The profitability of car producers will decrease, And this, as the letter signatories notice, It will bounce directly on hardly working Americanswho deal with the assembly of these vehicles.
In addition, higher prices of new vehicles can lead owners to longer use of old cars, which will increase the prices of used cars. “These higher vehicle costs will be disproportionately incurred by the families of the and middle class workers’ class,” it was written in a letter.
The White House sees it differently
Meanwhile, Trump’s administration sees it differently. According to the White House, customs duties are to remove production to the USA. The spokesman for the White House Kush Desai noticed that car manufacturers, such as Hyundai, have announced new investments in the United States and argued that Trump’s investments and Appeal for a new tax relief on car loans “will continue to drive the historical increase in production and employment”.
Source: Reuters
