The Trump administration’s tariffs might hurt your vehicle in addition to truck industry more than help, auto industry veteran Jim Press told CNBC.
“The reality will be of which tariffs normally don’t go away once they’re enacted,” Jim Press said on “
U.S. tariffs on $34 billion worth of Chinese goods went into effect at 12:01 a.m. EST on Friday. China immediately implemented retaliatory tariffs on its own. Beijing called of which the “biggest trade war in economic history.”
The Chinese tariffs will impact many American sectors, including agricultural products in addition to autos. right now, vehicles built inside U.S. in addition to sold overseas are subject to tariffs of up to 40 percent. Vehicles made in China in addition to sold inside U.S., however, pay only a 25 percent tariff. In addition, China imports fewer cars to the U.S. than the additional way around.
The U.S. exported 267,000 autos to China last year, in addition to includes a trade surplus of $6.4 billion inside auto sector with China.
“The reality of our cars going to China, we don’t make the kinds of vehicles of which the Chinese might be using on their roads with their fuel economy,” said Press, who will be right now president of RML Automotive.
The move left many wondering how automobile manufacturers inside U.S. will cope with higher prices. Mercedes-Benz, which builds SUVs in Alabama, has not said yet how of which will address the issue. BMW, however, said the tariffs might affect retail prices of versions shipped out of South Carolina to China. Tesla also said in a note to consumers in China of which they should expect higher prices.
Press, who spent more than four decades inside auto industry, including tenures at Toyota, Ford Motor Company, General Motors in addition to Chevrolet, as well as serving as co-president in addition to vice chairman of Chrysler, said nothing Great comes out of trade wars.
“The outcomes are normally bad,” he said. “In This kind of case, of which’s truly not merited based on the current situation inside U.S. auto industry. yet of which will be perhaps a political effort to try in addition to put pressure on China. I don’t see how of which’s going to help American consumers.”