The Impact of Trump’s Steel Tariffs on the Auto Sector
A suppression on imports by the U.S. President Trump might upset U.S. manufacturers, retailers, and other industries. The tariffs, on the other hand, might help U.S. steel companies, but other industries will experience raised prices for consumers of their goods.
The President, keeping his promise made in the election campaign, is seeing tariffs on steel imports in order to boost the U.S. steel industry.
According to economists, shielding tax on imported steel would give the domestic steel producers the incentive to raise their prices, by benefiting them, but by making automobiles and other steel products more expensive, pushing customers to buy products from foreign companies which are unaffected by the tariff.
The President raises his concerns of cheap foreign steel being dumped giving competition to the domestic producers. He intends to resolve the situation by imposing quotas and tariffs.
Although makers using foreign steel might be confined with high priced material costs, lessen employment in manufacturing and increase prices for consumers, but the tariffs & quotas will save jobs in the U.S. Steel industries and help them recover unfair trade by countries like China and other exporters. However, it is still uncertain what steps might be most effective.
Trump had requested the U.S. Department of Commerce, in June to conduct a Section 232 investigation into steel and aluminum imports to regulate if foreign countries are hurting U.S. national security, targeting China, criticizing for cheating on steel prices. If the finding is positive of a threat there, then the administration would levy protective tariffs against a country or group of countries.
Added tariffs if imposed, would also likely upset the friendly countries where the US makes do business importing steel and might increase the cost of U.S. manufactured products. Among the topmost steel exporters to the U.S. are Mexico, Canada, Brazil, the European Union and Japan.
In 2002, former President George W. Bush imposed steel tariffs, this was found prohibited by the World Trade Organization which allowed other countries to react against American exports and Bush was required to back down. resulting around 200,000 workers in U.S. manufacturing losing their jobs.
Several companies which include Ford Motor Co. and General Motors. are also pressing members of Congress to campaign in contradiction to tariffs.
Auto industry analysts and trade experts say that uncertainty is created in the market, which increases the risks in U.S. auto industry.
Most popular reports
- Automotive Lightweight Material Market Forecast, Trend Analysis & Competition Tracking – Global Market Insights 2019 to 2028
- Vehicle Power Distribution Module Market Forecast, Trend Analysis & Competition Tracking - Global Market Insights 2018 to 2028
- Marine Hawser Market Forecast, Trend Analysis & Competition Tracking - Global Market Insights 2018 to 2028