TaxTMI 
TaxTMI 
Global automakers say Trump's tariffs will be painful for them, US consumers
X X X X Extracts X X X X
X X X X Extracts X X X X
....lobal automakers say Trump's tariffs will be painful for them, US consumers<BR>PTI News<BR>Dated:- 28-3-2025<BR>PTI<BR>Frankfurt, Mar 28 (AP) Whatever domestic economic gain comes from US President Donald Trump's new 25 per cent tax on imported cars – and experts are skeptical – automakers around the world are bracing for a lot of pain. In Japan, South Korea, Mexico, Canada and across Europe,....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the world's largest automakers employ millions of people whose livelihoods depend on US car buyers, who currently spend more than USD 240 billion annually on imported cars and light trucks. The Trump tariffs – aimed at boosting US jobs and tax revenues – will also affect imported auto parts, which were valued at USD 197 billion last year. “The impact will be really huge and very disruptiv....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e,” said Sigrid de Vries, director general of the European Automobile Manufacturers' Association. Vries and others critics say American car shoppers will also be worse off, as tariffs push prices higher. Policymakers around the world said on Thursday they were weighing their next moves – namely, whether to retaliate, and if so, how. But they also expressed hope that negotiations with Washin....
X X X X Extracts X X X X
X X X X Extracts X X X X
....gton could avert an escalating trade war, and the economic damage and global supply chain disruptions that would come with it. Trump said the tariffs on autos would start being collected on April 3. The impending hit comes on top of other US tariffs planned globally on steel and aluminum, and at a time when competition from China, and the transition to electric vehicles, is already pressuring au....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tomakers. The anticipated blow knocked down the stock prices of many major automakers on Thursday, including Toyota, Mercedes-Benz, Kia and BMW. US carmakers are less exposed to possible retaliation because they export only 2 per cent of their production to the EU. Still, shares of Ford and General Motors fell because the US industry relies heavily on cross-border trade in auto parts – althoug....
X X X X Extracts X X X X
X X X X Extracts X X X X
....h Tesla is an exception and its stock price rose on Thursday. Most foreign carmakers have plants in the US -- Japanese carmakers have two dozen, for example -- but that would not shield them if they use imported parts, unless those parts are exempted under a free-trade agreement with Mexico and Canada. The auto tariffs will be felt sharply in Europe, for whom the US is the biggest export market ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....for an industry that supports nearly 14 million jobs. The EU's top trade official, Maros Sefcovic, has travelled to Washington at least twice since Trump was reelected to try to engage the administration. But Trump says the tariffs, which his administration estimates would raise USD 100 billion in revenue annually, are “permanent”. The White House has claimed they will foster domestic manufac....
X X X X Extracts X X X X
X X X X Extracts X X X X
....turing. The head of the United Auto Workers, Shawn Fain, thanked the White House “for stepping up to end the free trade disaster that has devastated working class communities for decades”. The US president on Monday cited plans by South Korean automaker Hyundai to build a USD 5.8 billion steel plant in Louisiana as evidence that tariffs would bring back manufacturing jobs. Economists say th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e tariffs will only raise costs that will be passed on to consumers and lead to a cycle of retaliation that will reduce trade between countries. “There's a risk of retaliatory tariffs and then a tit-for-tat, and then we end up with significant barriers to trade and we all lose out,” said David Bailey, professor of business economics at the University of Birmingham. “That's the fundamental ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....problem here, essentially that governments will start to retaliate against each other.” Before the new auto tariffs were announced, the EU had been planning to re-impose suspended tariffs in mid-April on a range of US goods, including jeans, bourbon and motorcycles, as part of a previous dispute over trade in steel and aluminum. “We have our plans ready," said EU foreign affairs representati....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ve Kaja Kallas. But she said there is still uncertainty about which tariffs Trump will follow through on, and which can be resolved through negotiations. Japanese Prime Minister Shigeru Ishiba on Thursday reiterated a request that his country's automakers be exempted from Trump's tariffs. When asked about possible responses, he said “all options” are on the table, without giving specifics. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....The union that represents auto workers in Canada lashed out at Trump's decision, and called on their prime minister, Mark Carney, to retaliate if necessary. “We have never seen an attack like this but we are ready,” said Lana Payne, the national president of Unifor. She said Carney should tell Trump that if US automakers are going to sell cars and trucks in Canada they are going to have to b....
X X X X Extracts X X X X
X X X X Extracts X X X X
....uild in Canada. Autos are Canada's second largest export, and on Wednesday – before Trump made his announcement – Carney unveiled a USD 1.4 billion “strategic response fund” that will protect Canadian auto jobs affected by the tariffs. For now, international auto companies are reluctant to make expensive operational changes, such as adjusting supply chains or relocating more production t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o the US, since it is still possible the tariffs will be withdrawn by Trump if they cause too much economic pain for Americans, according to analysts at the Sanford C Bernstein research firm. “Despite claims that the tariffs would last for Trump's full term, we think it is unlikely that the new tariff regime will last, given the wide-spread damage they will do across industries and the inflatio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nary impact on the US economy,” they wrote. (AP) ARI<BR> News - Press release - PIB....