Two business groups of Michigan urged President Donald Trump to stop the plans to impose 25% tariffs on imported vehicles and spare parts, saying that would lead to dramatic price increases, interruptions in the supply chain and state problems with a large automotive industry.
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“The increase in costs would cause a significant interruption throughout the supply chain and, perhaps the most important thing, would lead to significant increases in the cost of vehicles for US consumers,” said the Regional Chamber of Commerce of Detroit and Michauto, an automotive and mobility association.
In Michigan, where one in five jobs is related to the automotive industry, the suffering of the working class will be deep. The automotive sector contributes approximately 300 billion dollars to Michigan’s economy annually, according to the Regional Chamber of Detroit.
Last week, Trump met his threats to impose new tariffs on imported cars for weeks, stating that a 25% tax on the importation of vehicles not manufactured in the United States would enter into force on April 3, in addition to previous tariffs.
You could also add new cars tariffs as part of the wide tariffs you will announce on Wednesday.
The groups said that tariffs will damage the automotive industry and the state economy, and pointed out that there are more than 1,000 automotive suppliers based in Michigan.
“The proposed tariff policies will increase prices, reduce consumer demand and, therefore, will reduce the profitability of our companies, which will directly affect Americans who work hard to assemble the iconic vehicles,” the letter added.
The increase in new vehicle prices could incite some owners to conserve their old vehicles for a longer time, which would raise the price of those used.
“This increase in the cost of vehicles will disproportionately fall on working and middle class families,” said the letter.
With Reuters information
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