Trump meets with his trade team today to discuss a Draft of Car Import Tariffs.

Trump claims that auto imports are a threat to US national security under section 232 of the 1962 Trade Expansion Act.

It's the same provision Trump used to justify steel and aluminum tariffs earlier this year.

Yes, it's totally stupid.

Truce Won't Last Much Longer

European Commission President Jean-Claude Juncker says U.S. Car-Tariffs Truce May Not Last Long.

“We had achieved that there will not be a new trade conflict over the summer months until the end of the year, particularly with regard to car tariffs,” Juncker said in a speech in Berlin on Monday.

Auto tariffs at that level would add about 10,000 euros ($11,300) to the sticker price of the average European-built car sold in the U.S., according a European Commission assessment obtained by Bloomberg last summer. That would cut U.S. imports of European cars and car parts in half, the commission forecast.

RECOMMENDED ARTICLES

Auto Companies Blast Tariffs

Please consider How Car Companies Are Blasting Trump's Import Investigation.

  • GM: Says tariffs “could lead to a smaller GM” and risks resulting in “less -- not more -- U.S. jobs” by increasing costs and spurring retaliation by countries that could hurt the company in other markets
  • Ford, Fiat Chrysler: On behalf of members GM, Ford and Fiat Chrysler, the American Automotive Policy Council estimates a 25 percent levy would be an $83 billion tax burden for the U.S. auto industry and consumers.
  • Toyota: The company has 10 manufacturing plants and an eleventh being constructed soon with Mazda Motor Corp. that directly or indirectly employs 137,000 people. It's invested almost $25 billion in the U.S. to design, engineering, manufacture and sell Toyota and Mazda vehicles. A 25 percent tariff on imported vehicles and parts would raise the price even of the Kentucky-built Camry sedan -- the top-selling car in America -- by about $1,800
  • Nissan: Has invested $11.8 billion in U.S. manufacturing, employs 22,000 directly and boasts the country’s biggest vehicle production facility, in Tennessee.
  • BMW: Has invested almost $9 billion in its South Carolina plant and is also the only manufacturer that produces more cars than it sells in the U.S.
  • Volkswagen: Employs about 3,500 at plant in Tennessee and directly supports almost 50,000 U.S. jobs.
  • Mazda: If a 25 percent tariff is imposed on imported vehicles, the company may change plans to invest in its dealer network and in a new plant it’s building with Toyota in Alabama.
  • Daimler: Employs more than 24,000 in the U.S. across operations including its Mercedes-Benz passenger vehicle and van businesses, financial services unit and research-and-development operation. “New tariffs on imported parts will result in a reduction of vehicles being produced in Alabama. Lower production volumes will result in fewer shifts with fewer U.S. employees”
  • Volkswagen: Employs about 3,500 at plant in Tennessee and directly supports almost 50,000 U.S. jobs.

Job Losses

It is crystal clear there will be tens of thousands of job losses if Trump goes through with his idiotic plan.

There will not be comparable gains for US companies. Even GM and Ford are against the tariffs.

If you think this is a good tactic related to the "Art of the Deal" you are truly mistaken. Trump is clueless on trade.

Mike "Mish" Shedlock

Tariff Ping-Pong: Trump Again Threatens the EU

The moment Trump caved in on China tariffs, threats against the EU were a given.

Still More Tariffs: Trump Threatens 20 Percent Tariff on EU-Assembled Cars

Trump has threatened to put tariffs on EU cars many times. He did so again today. It's safe to assume they are coming.

Trump Considers 25% Tariffs on All Auto Imports as Matter of "National Security"

Trump has gone apeshit batty with his latest "national security" tariff proposal.

Trump Again Threatens Europe With Tariffs: Expect Instant Global Recession

Trump is hopping mad the EU for at least seven reasons. Mad enough to foolishly smack them with tariffs? I Believe so.

Trump Threatens to Place Tariffs on All $500B China Imports, Blasts Fed Again

Trump blasted the Fed, the EU, China today with threats to put tariffs on everything. China and the EU are manipulators.

No Deal: Trump Offers Zero-Tariff Deal, EU Refuses

Germany is in a bind. It wants a tariff deal to save its car manufacturing. The rest of the EU would rather fight.

Trump's $54 Billion Tax Hike on Autos: EU Threatens $300 Billion Retaliation

The EU is poised to retaliate against Trump. The Financial Times editorial board endorses the idea.

Trump, Fearing Trade Wars on Multiple Fronts, Delays Auto Tariffs for 180 Days

Trump does not want a trade war with the EU and China at the same time. In a cop-out, he delays imposing auto tariffs.

With 2 Hours to Spare, 25% Auto Tariff Report Heads to Trump's Desk

The Commerce Department sent its tariff report to Trump's desk. It did not disclose the recommendation.