According to Bloomberg News, if US President Trump imposes a 25% tariff on imported vehicles, US annual new car sales will be reduced by at least 1 million. Jeff Schuster, senior vice president of global forecasting at LMC Automotive, a consultancy, said that according to the company’s forecast, automakers will bear at least half of the tariffs on imported cars. If manufacturers pass 25% of their tariffs to consumers, then the annual sales of new cars in the United States may drop by 2 million vehicles.
On May 23, local time, US President Trump asked the U.S. Department of Commerce to investigate the impact of imported vehicles on national security. He will then decide whether to increase U.S. auto import tariffs to 25%. According to Article 232 of the U.S. Trade Development Act of 1962, the U.S. government will investigate whether imported vehicles and components threaten the health of the U.S. auto industry and develop high-end technologies. When this decision was made, it shocked the global automotive industry. Car manufacturers, distributors and Republican lawmakers criticized the decision.
Schuster believes that Trump's statement may only be "flattering," but after the United States officially announced tariffs on steel and aluminum imports from Canada and Mexico, Trump's comments on increasing tariffs on imported cars should be taken seriously.
Schuster said that if Trump really imposes tariffs on imported vehicles, then U.S. consumers may adopt three methods. Some will consider buying used cars, especially for less-expensive vehicles that are leased; others will buy cheaper vehicles made in the United States; and some consumers will postpone buying vehicles, thinking that tariffs It was only the result of a momentary political friction.
On June 12, GM chief executive Mary Bora said that General Motors will pay close attention to trade negotiations, but when asked about how the 25% import tariff will affect the company, Bola did not directly answer. “We only want to ensure the profitability of the company’s automotive business, because it is very important to support the entire industry and support employment.†According to LMC’s forecast, GM’s domestic imported car sales this year are about 1.16 million, or 39% of the total general sales. %about.
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