Car industry concerned about import tariffs

Car industry concerned about import tariffs

The car industry is concerned about import duties on steel and aluminum that US President Trump has announced. Because of these levies, the prices of cars in the United States can rise because the raw materials costs increase, car companies and interest groups warn.

For example, Japanese Toyota Motor reported that import duties will have adverse effects on the car sector due to the increasing costs. The steel that Toyota uses to make cars in the US, incidentally, is 90 percent from the US. Toyota is currently working with Mazda to build a new factory in Alabama worth 1.6 billion dollars.

Car industry concerned about import tariffs

Earlier this week, it became known that car sales in the US fell sharply in February, partly due to the higher costs for car loans. Last year, American car sales fell for the first time since the financial crisis. The trade association of American car dealers therefore believes that the levies are coming at a bad time and states that car manufacturers are not prepared for sharply rising costs for the production of cars in the US.

In a first reaction, the Chinese government stated that international trade could be affected if other countries followed the example of the US and would also impose import duties. Incidentally, the main economic adviser to the Chinese president Xi Jinping would have held constructive negotiations on economic issues with the Americans on Thursday.