August 3, 2018—Aftermarket executives are assessing the impacts of the Trump administration tariffs.
Under America’s Section 232 national security codes, a U.S. Department of Commerce investigation has also been implemented, delving into how the entire international automotive industry relates to the country’s domestic economic interests, according to the Aftermarket Business World.
A barrage of personal insults accompanied by tariffs of 25 percent on steel and 10 percent on aluminum imposed against G-7 Summit allies – Canada, France, the United Kingdom, Germany, Japan and Italy – along with the 28 countries comprising the European Union, plus Mexico, have resulted in tit-for-tat talk of retaliatory tariffs from the aggrieved governments, reports Aftermarket Business World.
China, too, is engaged in an exchange of financial fusillades with the U.S., according the report.
“There are too many variables right now to accurately assess the ramifications, but they do range from minimal to punitive and destructive,” according to Aaron Lowe, senior vice president of regulatory and government affairs at the Auto Care Association. “The Administration does not appear to be interested in slowing down its confrontational approach to our allies. It is unclear at this point whether this strategy will benefit U.S. companies or result in a trade war that could have negative implications for the global economy. There will be companies that will be directly impacted by the tariffs that the President has imposed on China and may impose as a direct result of the Section 232 automotive and auto parts investigation.”
