New China tariff list creates risk of 'downward cycle' for US auto industry
DETROIT – New tariffs imposed by President Donald Trump on auto parts from China will hit carmaker profits, cut sales and threaten to "start a downward cycle" in the critical industry, analysts unanimously agree. In addition, if you're in the market for a new car, you probably should head to a dealership soon, because prices will be going up.
Trump's latest round of tariffs on Chinese imports will add costs to more than 100 car parts – a 10 percent levy on everything from tires and brake pads to engines and batteries – that go into vehicles made and sold in the U.S.
"It's going to be felt by Americans, and it's going to be a big deal," said Peter Nagle, senior analyst at IHS Markit. "Tariffs are taxes on consumption. Eventually costs will be passed down to the consumer. This will drive vehicle costs higher. It also includes a lot of body shop equipment."
Kristin Dziczek, vice president of the Industry, Labor & Economics Group at the Center for Automotive Research said
"Tariffs are taxes on American consumers. We're going to sell fewer. And not only do we buy car parts from the rest of the world, we sell parts to the rest of the world," she said. "It's all going to cost more. ... It starts a downward cycle that isn't good."
https://www.usatoday.com/story/money/nation-now/2018/09/18/china-tariff-auto-industry-impact/1346276002/
