[Global Finance] Six major automotive industry organizations in the United States wrote to the government to oppose taxes on imported auto parts

Source: Xinhua Finance

Xinhua Finance, New York, April 23 (Reporter: Liu Yanan) On April 21, six major automotive industry organizations representing American automobile dealers, suppliers, and almost all major automobile manufacturers jointly sent a rare letter to the U.S. Secretary of the Treasury, Secretary of Commerce, and the U.S. Trade Representative, calling on the federal government not to impose an additional 25% tariff on imported auto parts on May 3.

The letter states that the tariffs imposed on auto parts will disrupt the global automotive supply chain and trigger a chain reaction, leading to an increase in the selling prices of automobiles, a decline in sales, and making automotive after-sales service and maintenance more expensive and unpredictable.

The letter warns: "Most auto suppliers are not prepared for the sudden disruption caused by tariffs. Many suppliers are already in operational difficulties and will face production halts, layoffs, and bankruptcies. As long as one supplier is unable to deliver goods, it will lead to the shutdown of an automobile production line. Just like during the COVID-19 pandemic, when this happens, all suppliers will be affected, and workers will lose their jobs."

According to U.S. media reports on April 22, those who signed the letter include the heads of the Alliance for Automotive Innovation, the American Automotive Policy Council, AutosDriveAmerica, the Motor & Equipment Manufacturers Association, the National Automobile Dealers Association, and the American International Automobile Dealers Association.

U.S. President Trump signed a proclamation at the White House on March 26, announcing the imposition of a 25% tariff on imported automobiles. This tariff measure officially took effect on April 3. The plan to impose an additional 25% tariff on more than 100 types of imported auto parts, including engines, steering wheels, and hinges, is scheduled to take effect on May 3.

Disclaimer: The views expressed in this article represent only the personal views of the author and do not constitute investment advice on this platform. This platform makes no guarantees regarding the accuracy, completeness, originality, and timeliness of the article information, nor does it assume any liability for any losses caused by the use or reliance on the article information.