Auto Parts Suppliers Fear Trump Tariffs may Crush Jobs
A trade group for auto parts suppliers says President Trump’s new tariffs on steel and aluminum will raise cost of materials, especially some only made outside U.S., may drive some companies out of business, force job cuts and cause price hikes for consumers.
A group representing auto parts suppliers says President Trump’s new tariffs on steel and aluminum could destroy jobs in Michigan.
The President says foreign countries are unfairly sending huge amounts of steel to the U.S.
He says that’s eroding the U.S. steel industry and posing a threat to national security.
But a lobbiest for the U.S. Motor and Equipment Manufacturers Association, Ann Wilson, says the tariffs will hurt auto suppliers.
“A trade war is going to cost our industry jobs and money. It’s also going to end up costing the American consumer.” – Ann Wilson, U.S. Motor and Equipment Manufacturers Association
She says the tariffs will make steel that’s not easily found in the U.S. far more expensive.
“We should be very concerned about the impact that the tariffs are going to have on smaller suppliers. If you’re a metal stamper, a wire manufacturer, you’re going to be very dependent on the ability to both import this and on the price of these raw materials,” Wilson says.
She also recoils at the President’s comment that a trade war “could be good” for the U.S.
Wilson says likely retaliatory measures taken by other nations could easily create an economic crisis.
“A trade war is going to cost our industry jobs and money,” Wilson says. “It’s also going to end up costing the American consumer. They’re gonna be less able to buy a new car or buy the parts that they’re gonna need to repair or replace on a car they already own…or even to buy other consumer goods that go on trucks throughout the country.”
Wilson says the problem could grow worse if the U.S. pulls out of the North American Free Trade Agreement with Canada and Mexico.
Trump says he will exempt those countries from the new metal tariffs, depending on how talks to renegotiate NAFTA progress.
