Cody Lusk, President of the American International Automobile Dealers Association, Took time to talk with CBT’s Jim Fitzpatrick about what President Trump’s new tariff proposal on Aluminum and Steel could mean in the automotive Industry for both dealers and buyers.
President Trump recently announced he would like to place a 25% tariff on all steal and 10% tariff on all Aluminum that enters the United States. In a Recent tweet, the president said, “Our Steel and Aluminum industries,(and many others) have been decimated by decades of unfair trade and bad policy with countries from around the world”. Many are concerned by this proposal and unsure if this is a move in the right direction.
The automotive industry is a heavy user of these inputs, who would this directly affect the dealers and consumers of retail? Cody Lusk says that consumers could see the cost of vehicles rise. Also, it will impact the automakers that need to purchase steel for production. This could jeopardize an industry that employs millions of people in multiple sectors. The last time we had an action on steel many industry workers lost their jobs and that should be taken into consideration. Never the less, it is hard to accurately predict the ultimate impact this could or will have on the US and the US consumers.
As nothing has been formally announced, leaving the if and when unknown, Lusk suggests making yourself known by calling or contacting your member(s) of Congress. It’s important your representative(s) know what and who make up their Congressional District. Especially as this could have a far reach within the community.
If you would like to learn more about the steel and aluminum tariff and its potential impact on the Automotive retail industry, visit our recently posted article, How Trump’s Proposed Tariff On Steel and Aluminum Could Impact the Automotive Industry, for additional information.