(Reuters) – U.S. President Donald Trump on Wednesday unveiled a 25% tariff on imported cars and light trucks starting next week, widening the upon regaining the White House this year in a move auto industry experts expect will drive up prices and stymie production.
Here are some reactions to the ruling.
ELON MUSK, TESLA CEO
“Important to note that Tesla is not unscathed here. The tariff impact on Tesla is still significant.
“This will affect the price of parts in Tesla cars that come from other countries. The cost impact is not trivial.”
SHIGERU ISHIBA, JAPAN’S PRIME MINISTER
“Japan is a country that is making the largest amount of investment to the United States, so we wonder if it makes sense for (Washington) to apply uniform tariffs to all countries. That is a point we’ve been making and will continue to do so.
“We need to consider what’s best for Japan’s national interest. We’re putting all options on the table in considering the most effective response.”
NATIONAL FOREIGN TRADE COUNCIL, WHICH REPRESENTS MANY U.S. COMPANIES, VP TIFFANY SMITH
“Placing tariffs on imports of autos risks damaging the competitiveness and export readiness of an industry that relies on integrated international supply chains and markets for its success.
“We urge the administration to focus on the competitiveness of the U.S. auto industry and prioritize market opening opportunities for auto companies who manufacture vehicles for export in the United States.”
UNITED AUTO WORKERS UNION PRESIDENT SHAWN FAIN
“We applaud the Trump administration for stepping up to end the free trade disaster that has devastated working class communities for decades … These tariffs are a major step in the right direction for autoworkers and blue-collar communities across the country, and it is now on the automakers, from the Big Three to Volkswagen and beyond, to bring back good union jobs to the U.S.”
AUTOFORECAST SOLUTIONS ANALYST SAM FIORANI
“Clearly there are going to be winners and losers… Companies that have invested hundreds of millions and billions of dollars on plants in Canada and Mexico will likely see their profits cut dramatically over the next few quarters, if not into a couple years. We’re going to look at adjusting our sales and production forecasts because this will throw everything into chaos.”
EDMUNDS ANALYST JESSICA CALDWELL
“Many vehicle parts are sourced globally, which would increase repair costs for car owners, and reconditioning costs for dealers. Insurance premiums will also likely increase as any accidents involving new parts will see increased costs as well.”
ONTARIO PREMIER DOUG FORD
“President Trump is at it again. His 25 per cent tariffs on cars and light trucks will do nothing more than increase costs for hard-working American families. U.S. markets are already on the decline as the president causes more chaos and uncertainty. He’s putting American jobs at risk. I’ve spoken with Prime Minister Carney. We agree Canada needs to stand firm, strong and united. I fully support the federal government preparing retaliatory tariffs to show that we’ll never back down.”
GERMAN CAR INDUSTRY ASSOCIATION VDA PRESIDENT HILDEGARD MUELLER
“The announced additional US tariffs of 25% on all passenger cars and light commercial vehicles that are not manufactured in the U.S. are a fatal signal for free and rules-based trade… The German automotive industry is calling for immediate negotiations between the U.S. and the EU on a bilateral agreement… The risk of a global trade conflict – with negative consequences for the global economy and growth, prosperity, jobs and consumer prices – is high on all sides.”
UK’S SOCIETY OF MOTOR MANUFACTURERS AND TRADERS CEO MIKE HAWES
“Today’s announcement by President Trump is not surprising but, nevertheless, disappointing if, as seems likely, additional tariffs are to apply to UK made cars … Rather than imposing additional tariffs, we should explore ways in which opportunities for both British and American manufacturers can be created as part of a mutually beneficial relationship.”
CHUCK CARLSON, CHIEF EXECUTIVE OFFICER, HORIZON INVESTMENT SERVICES, HAMMOND, INDIANA
“I’ve been kind of suspect on all the tariff talks in terms of what is going to last, what is a negotiation, what is going to be pulled at the last minute. My initial reaction was this tariff might have some legs.”
“There’s probably going to be some exemptions or modifications for some of the U.S. automakers … I could see the U.S. automakers getting some exemptions based on their supply chains. But I think he may want to see how this works out as opposed to stopping it in two or three days.”
COUNCIL ON FOREIGN RELATIONS SENIOR FELLOW BRAD SETSER, ON X
“Adding parts complicates life for BMW and Mercedes in SC and Alabama. Exempting US content helps Ford and GM (and Canada and Mexico at the margin). Imports from Korea and Japan have almost no US content.”
Reporting by Andrea Shalal and Nandita Bose in Washington, Kalea Hall in Detroit, David Ljunggren in Ottawa, Christoph Steitz in Frankfurt and Unnamalai L in Bengaluru, Timothy Kelly and Leika Kihara in Tokyo, Additional reporting by Global Finance & Markets Breaking News Team; Editing by Peter Henderson, Matthew Lewis and Janane Venkatraman
