Mazda Motor Corp. became the latest auto company to condemn the Trump administration's plans for potential vehicle import tariffs, saying such duties would hit both the industry as well as USA consumers.
The Trump administration in May launched an investigation into whether imported vehicles posed a national security threat, and US President Donald Trump has repeatedly threatened to quickly impose a 20 per cent import tariff on vehicles.
Toyota has said that the Toyota Camry, manufactured in Georgetown, could face $1,800 in increased costs if the tariffs are realized.
"As the top USA exporter of vehicles, we believe lower tariffs in every market will support growth and jobs", Ford said in a statement to The Hill.
Business groups sent in comments this week to the Commerce Department, which is investigating whether Section 232 tariffs should apply to imports of automobiles and auto parts in the interest of national security.
Trade associations for the auto industry, as well as companies that include Toyota, BMW and Volvo also submitted comments in opposition to the tariffs.
According to industry sources, the Trump administration is hoping to complete an investigation into the national security implications of auto imports ahead of midterm congressional elections to be held in November.
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The U.S. automaker warned that an escalating trade war could backfire and lead to "less investment, fewer jobs and lower wages".
GM, the largest US automaker, operates 47 manufacturing facilities and 25 service part facilities across the country, employing approximately 110,000 people.
America's largest carmaker has added its voice to the chorus of companies and countries criticising proposed U.S. tariffs on foreign cars and auto parts. It goes on saying, just like Toyota, that should the 25 percent tariff on the import of automobiles and automobile parts be imposed, it will in effect be a tax for American consumers.
In such a situation, GM said, it would either have to raise prices or move its manufacturing facilities.
Among the USA vehicles that GM builds overseas are the Buick Cascada, which is assembled in Poland, and the German-made Buick Regal. The EU has a 10% tariff on vehicles imported from the U.S. China imposes a 25% duty on U.S. cars.
GM operates 47 USA manufacturing facilities and employs about 110,000 people in the country. "The overbroad and steep application of import tariffs on our trading partners risks isolating US businesses like GM from the global market that helps to preserve and grow our strength here at home", GM said.
Toyota imported about 54% of its vehicles sold in the US last year, or about 1.3 million units, according to LMC.