“If Tariffs Are Imposed on Automotive Industry it will Negatively Affect the US Economy”, Senate Committee Says

“If Tariffs Are Imposed on Automotive Industry it will Negatively Affect the US Economy”, Senate Committee Says

Last Wednesday was a tedious day for the senate finance committee. This is because the proposed amendments to impose tariffs to the automotive sector has spiked a lot of concern from the US citizens and the automotive industry. This bill was brought up by Senators Rob Portman and Sherrod Brown. During the committee hearing, the legislative director of the automotive industry in US Josh Nassar was present.

Josh said, “The bill by Sherrod Brown has good intention to keep automotive jobs in the United States.” When in discussion senator Brown said that he is not supporting General Motors verdict to stop the construction of its plant in Lordstown but they are in plans to go to Mexico to construct a new Chevrolet Blazer. This later led to questions by Sherrod who asked Nassar if General Motors plans is an evidence that our policies don’t encourage US-based automotive industry.

If this bill is signed into law then the American cars, American Jobs Act will have the automotive industries give their customers a $3,500 discount on every one car out of 100 cars that they produce. This senate meeting came days after Rob Portman met with Mary Barra the CEO of General Motors. The meeting by Rob and Mary was to convince her to invest more in the plant in Lordstown but she was not up for any of Rob’s persuasions.

Later Rob said that the meeting with Mary didn’t bear any fruits and was rather discouraging. According to Orrin Hatch, the senate finance committee chairman said, “If any tariffs are imposed on the automotive industry which contributes to 3% of Americas GDP it will negatively affect the economy.” In addition, during the meeting, Senator Rob also highlighted the negative effect of the misuse of section 232 of the trade expansion act of 1962 to the automotive industry in the US.

Automotive industries such as Honda that is based in Ohio has backed the Trade Security Act this was said by Rob. The executive vice president of Honda North America Rick Schostek said, “This bill will help shade light to how tariffs are applied,” He said this during the Finance committee hearing. He added that his auto industry is contributing positively to the US economy.

Another person who wanted clarification about this controversial bill was Michael Haughey the president and CEO of North American Stamping Group. This is after he had issues on a tariff that is to be imposed to the automotive industry will affect the price of vehicles. This issue was addressed by Portman. Furthermore, Haughey said that the price of a car will increase by averagely $2,000.

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