Trump Threatens Tariff Increase on China — Including Tires
President Donald Trump has once again threatened to increase tariffs on Chinese products imported into the U.S., and the Auto Care Association has repeated its plea that Trump change course.
The United States has been losing, for many years, 600 to 800 Billion Dollars a year on Trade. With China we lose 500 Billion Dollars. Sorry, we’re not going to be doing that anymore!— Donald J. Trump (@realDonaldTrump) May 6, 2019
In a Tweet on May 5, Trump said he would increase a 10% tariff on products — which includes tires — to 25% on Friday (May 10, 2019.)
For 10 months, China has been paying Tariffs to the USA of 25% on 50 Billion Dollars of High Tech, and 10% on 200 Billion Dollars of other goods. These payments are partially responsible for our great economic results. The 10% will go up to 25% on Friday. 325 Billions Dollars....— Donald J. Trump (@realDonaldTrump) May 5, 2019
In a statement, the Auto Care Association says it supports the president’s effort to address China’s unfair trade practices, “and is encouraged by recent progress made through trade talks,” but the association is opposed to “the use of tariffs as a negotiating strategy. U.S. companies and consumers end up bearing the brunt of these taxes on imported product through disrupted supply chains, increased prices and job losses.
“The Auto Care Association urges President Trump not to follow through on his threat to increase tariffs on $200 billion in imported goods from China as soon as this week. The proposed sudden increase from 10% to 25% would have an immediate negative impact on not only the U.S. businesses that manufacture and distribute these parts, but the motoring public who will see higher prices on a wide range of products, including important safety-related components.
“In 2018, China was the second largest source of auto parts imported into the U.S., second only to Mexico and totaling over $20.1 billion worth of product. Furthermore, the president’s suggestion that a 25% tariff could be levied on an additional $325 billion in imports from China, without knowing which goods would be impacted, creates even more uncertainty for the business community.”