The trump administration has been severely criticized by auto manufacturers, foreign governments and other institutions for considering imposing a tariff of up to 25% on imported cars. Critics warn that the tariff will raise the cost of cars and have a serious impact on car sales and employment in the global auto industry.
According to the source, several major auto manufacturing countries have been discussing concerns about Trump’s automobile tariff recently, and may make joint response measures to the “232 investigation” implemented by the trump government. The “232″ investigation was announced on May 23 to investigate whether imported cars pose a threat to the national security of the United States. The survey will be completed in a few weeks. Last year, the U.S. government launched a similar investigation, resulting in import tariffs of 25% on steel and 10% on aluminum.
Although Canada, the European Union and Mexico have taken counter-measures after the US government began to impose tariffs on imported steel and aluminum in March this year, it is not clear what measures the above countries and organizations will take against Trump’s automobile tariff, or it is possible to resist the United States together at the World Trade Organization (WTO).
According to a Canadian official and a Mexican official, representatives of various countries will hold talks in Geneva on July 31, local time, to listen to each other’s opinions and suggestions. “The purpose of this meeting is to bring together major auto manufacturers to discuss the 232 investigation of the U.S. government on automobiles and parts,” said Canadian government officials
Mexico’s Ministry of economy confirmed that Juan Carlos Baker, Vice Minister of economy, will travel to Geneva to attend the meeting on several topics, including meeting with WTO director general Roberto Azevedo. Canada’s foreign ministry declined to comment.
According to the official WTO website, Azevedo will meet with Mexico’s Deputy Minister of economy, Baker, on July 30, and with Timothy Sargent, Deputy Minister of trade of Canada, and Kazuyuki Yamazaki, Deputy Foreign Minister of Japan, on July 31. Mexico’s deputy minister said the meeting had something to do with Trump’s auto tariffs.
Trump agreed on July 25, local time, to temporarily shelve the idea of imposing import tariffs on European Union cars, so as to reduce trade barriers of American exports and ease people’s worries about trade war. However, Trump’s final decision will not be known until the national security investigation is completed in the next few months.
Although a temporary breakthrough in trade negotiations between the United States and the European Union has brought some hope to car manufacturers, the planned meeting marks the worst-case scenario for major auto producers. If Trump’s auto tariff is finally implemented, it will have a serious impact on auto manufacturers such as Hyundai Motor of Korea, Toyota of Japan and BMW of Germany, as well as the global factories of general motors, Ford and Fiat Chrysler.
Post time: Jul-03-2020