Feb 18, 2019

Trump Administration Should Avoid New Auto Tariffs, Freedom Partners Says

Post by Freedom Partners

Arlington, VA – Freedom Partners Chamber of Commerce renewed its opposition today to a tariff of up to 25 percent on imported vehicles, in light of news reports of a new Department of Commerce report on the subject.

Freedom Partners Executive Vice President Nathan Nascimento issued the following statement:

“A 25 percent tariff on imported autos would put American consumers and businesses on the express lane into a ditch. Tax reform and reducing regulatory barriers have helped fuel a strong economy. But piling on even more tariffs puts it all at risk and invites retaliation from our trading partners.

“Making cars pricier when auto loan delinquencies are already surging seems particularly tone deaf to working Americans. We urge the administration to abandon the auto tariffs, go back to the European Union, and agree to eliminate all car tariffs on U.S.-EU trade. Moreover, Europe’s cars are about as dangerous to our national security as Wisconsin cheese is to theirs. Abusing the pretext of national security is all the more reason Congress should vote on any proposed tariffs before they can harm American consumers and producers.”

Background

Trade principles

  • The United States should eliminate all trade barriers, regardless of other countries’ trade policies, in order to provide Americans lower prices, more jobs and bigger paychecks, and to drive innovation through competition.
  • Individuals and businesses in a competitive market, not government bureaucrats or politicians, should guide trade decisions.
  • Punitive measures such as tariffs and quotas are an unjust government intrusion into the lives of hardworking Americans. They violate the property and associational rights of individuals and should all be eliminated.
  • Subsidies and other forms of government supports for powerful and politically connected businesses and industries do not create value. They punish consumers, burden taxpayers, insulate businesses from market competition, and should be eliminated.
  • Trade disputes should be resolved through existing international trade agreements and organizations.
  • While national security interests may be a consideration in trade policy, they should be used to restrict trade only when there is truly a narrow national security interest at stake, not as a workaround to impose tariffs.