President Donald Trump‘s threat to slap heavy tariffs on imported cars and parts may cost hundreds of thousands of American jobs and raise auto prices in the U.S. by roughly 10 percent. That’s according to analyses from economists, industry groups, lawmakers and carmakers ahead of a June 29 deadline to submit comments to the U.S. Commerce Department.
In May, the Trump administration floated a 25 percent tariff on auto imports, framing the measure as a means to ensure the vitality of key U.S. industries. Last week, Mr. Trump proposed a 20 percent tariff on all auto imports from Europe, before he gets the results of an investigation initiated last month by his own Commerce Department.
Here are the latest estimates on both job losses and costs:
A 20 percent tariff on EU auto imports may cost 100,000 U.S. jobs in 2019 alone, economists at Oxford Economics forecast in a June 28 note.
The emphasis is in the original.
Total American job losses climb to 195,000 over three years if 25 percent tariffs are applied broadly, a recent analysis from the Peterson Institute for International Economics found. If other countries retaliate and tax similar products, a whopping 624,000 jobs may be erased in the U.S., PIIE estimated.