Jul 12, 2018
Tariff Troubles: Ford and GM Say Tariffs Will Harm Their Industry
Post by Freedom Partners
Some say Tariffs and quotas have the capacity to protect and bolster American industry. In reality, the opposite is true. Keeping a tally of industries impacted by tariffs — dairy, soy, planes and trains — automobiles have now joined the list, as Detroit-based automakers like Ford and GM have insisted that tariffs will bring them immense harm.
Tariffs rarely protect American businesses. In fact, the unintended consequences cause significant, long-lasting damage to the economy. In the case of several more-than-century-old automakers, manufacturers warn that tariffs on steel, aluminum, autos and auto parts, as well as on imports from China, could cost the U.S. automobile industry $90 billion annually.
Tariffs will cost more jobs than they save, particularly in automobile manufacturing.
Nearly no American car or truck is made solely in America, with most manufacturers using foreign-made parts in production. Automakers will have to pay billions more in taxes just to assemble their vehicles. Consumers will be left paying the price.
“Nobody wins in this tariff scenario. Nobody’s jobs are saved,” said Rebecca Lindland, an analyst with Cox Automotive. “Everything is going to get more expensive.”
For more information on how tariffs are hurting America’s auto industry, read more here and here. Also, be sure to check out our tariff tracker, where we keep tabs on the self-destructive effects of tariffs.