Auto industry tariff for what now? 24 hours of confusion in the White House

Over the past 24 hours, the auto industry has seen some of the most vessel in the Trump administration tariff, which ends on Wednesday night with two proposals from the contradictory policy that comes out of the White House: China may give exemptions on car tariffs, but the tariff of cars in Canada may increase.

Yesterday night, the Wall Street Journal I mentioned Trump was considering reducing his tariff by 145 percent on China, which reduced some to 50 percent – a report that may have led to the displaced investors. It looked particularly reliable Trump hinted himself to a decrease During a press event earlier that day, saying: “145 % is very high. It will decrease significantly.” However, Treasury Secretary, Scott Payet, denied the WSJ report the next morning, saying that the United States would do no Reduced definitions. He told reporters: “This is the equivalent of the siege, and the separation between the two countries in trade does not fit the interests of anyone.”

Within hours, however, the Financial times I mentioned Trump was already planning to eliminate his recently imposed definitions on steel, aluminum, cars imported from China, and the White House Confirm to CNBC Shortly after that Some unilateral exemptions were already under consideration. Although it is not a full reflection-a 25 percent tariff will remain on foreign cars and a 25 percent tariff for all imported auto parts-it was possible to provide some comfort for car makers, who faced the ability to absorb the cost of multiple tariffs over each other.

Unfortunately, this was followed by confusion. Shortly after foot The report was published, and the shares of cars began to go up from the news, Trump Tell journalists at the Oval Office Canada – not China – may see a tariff of cars increasing. “They took a large percentage of the auto industry, and I want to return it to this country,” he said. “I don’t really want Canada cars. So when I put a customs tariff on Canada – they pay 25 percent, but this can rise in terms of cars – when we put the customs tariff, all we say is“ we do not want your cars, in all the respect, we really want to make our private cars, which we do with standard numbers. ”

The chaotic mixture of car tariffs is the latest occurrence of the Trump administration, which is wrinkled on who is a tariff, what is a tariff, and how much this tariff. But even if the new proposed exemptions are “inverted” from the current definitions, as officials described them as Financial Times, The definitions in their current form threaten the destruction of the American auto industry. in A message sent to the administration On Tuesday, an alliance of powerful American auto players was martyred Automotive Research Center Which was estimated that the car tariff of 25 percent would increase the costs to the industry by up to $ 107 billion.

“The customs tariff will defend auto parts in the global supply chain of cars and provoke the impact of the domino that will lead to high prices of cars for consumers, reduce sales in agents and will make the service and repair of vehicles more expensive and less predictive.”