Investing.com – President Trump’s next trade salvo may be higher tariffs on imports of autos and auto parts, a move that will hurt trading partners near and far.
The President is reportedly considering an increase in tariffs from 2.5% to a maximum of 25%, which would apply to all kinds of vehicles.
Here’s five things to know about auto imports.
The biggest suppliers of U.S. auto imports are Canada and Mexico. Together they sell about $89 billion dollars in vehicles a year.
Japan is next. Some $40 billion worth of cars were shipped to the U.S. in 2017.
Germany’s imports are worth about $20 billion a year.
Both Japanese and German automakers have major U.S.-based manufacturing operations, which are not included, and would not be affected.
In terms of individual companies, Toyota has the most at stake. It shipped 724,000 vehicles to the U.S. in 2017; 30% of its cars sold in the U.S. are imports.
Volkswagen (DE:) also has a lot to lose. It imported 281,000 cars last year. Almost half of the cars it sells in the U.S. come from abroad.
U.S. automakers would also be affected by the tariffs because they have manufacturing operations outside the country.
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