Under section 232 of The Trade Expansion Act of 1962, The Trump administration has the authority to impose tariffs on automotive imports from the UK, the European Union and Asia. On Feb. 17, the Commerce Department delivered a report on whether the import of these products poses a threat to U.S. national security, giving the administration 90 days to make its decision.
RSM Chief Economist Joe Brusuelas discusses the potential impact of these tariffs on the European automotive industry with Simon Hart, lead Brexit partner for RSM UK. Industry officials reportedly expect the tariffs, if implemented, to include both fully assembled vehicles and automotive parts.
“We’ll really be at the cusp of a true trade war,” said Brusuelas, of the expected impact of potential tariffs.
(Read more about automotive trends at RSMUS.com.)