Trump Tariffs Worsening For Auto Suppliers


DETROIT, Mich.–The new tariffs imposed by the Trump White House that took effect at 12:01 a.m. Washington time Friday raise from 10 percent to 25 percent the duties on more than 5,700 different product categories from China — ranging from cooked vegetables to Christmas lights and auto parts.

Auto parts ranked 10th on the list of products facing the higher tariffs with a value of $2.3 billion, according to the U.S. International Trade Commission. Among the motor vehicle parts made in China and targeted with higher U.S. duties are seats, wheels, bumpers, door assemblies, shock absorbers, radiators, transmission parts and instrument cluster clocks, according to a list posted by the U.S. Trade Representative’s office.

U.S. officials have said the new duties — introduced on just five days’ notice — will not apply to goods already on boats headed for American shores. A 25-percent tariff is already in place on a further $50 billion in imports from China.

Some American industries were quick to decry Trump’s decision, which will hurt some of his key political constituencies, including manufacturers.

The tariffs will “suppress job gains for the industry by as much as 400,000 over 10 years. It will also invite China to hit back at American businesses, farmers, communities, and families,” said Kip Eideberg, vice president of government affairs for the Association of Equipment Manufacturers.

Ahead of the latest round of meetings, Liu told Chinese state media he was coming to Washington under pressure but “with sincerity” and warned that a move to raise tariffs by the U.S. starting Friday was not a solution.

Earlier on Thursday, Trump sought to calm U.S. financial markets after he insisted it was still possible to reach a deal this week, even as he reiterated plans to raise tariffs on Chinese goods. Trump, speaking at an event in Washington, also said he may hold a phone call with his Chinese counterpart, Xi. No call between the two leaders had taken place by late Thursday nor had one been scheduled, according to a senior Trump administration official.

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with Bloomberg news.

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David Kiley is Chief of Content for The BRAKE Report. Kiley is an award-winning business journalist and author, having covered the auto industry for USA Today, Businessweek, AOL/Huffington Post, as well as written articles for Automobile and Popular Mechanics.