Auto Dealers Challenge Trump on Steel and Aluminum Tariffs

The American International Automobile Dealers Association (AIADA) responded harshly to President Trump’s announcement of a 25 percent tariff on steel imports and a 10 percent tariff on aluminum imports.

“Tariffs are taxes, and the American taxpayer will pay the cost of a trade war,” said AIADA President and CEO Cody Lusk. “Even with limited exemptions, tariffs will raise the sale prices of new vehicles, turning off price-sensitive consumers and leading to a dip in both auto sales and auto-related jobs.”

“Dealers remain concerned that any new tariffs could trigger a tit-for-tat trade war, crippling an already flat auto sales market, and potentially pushing the president to act on the 25 percent tariff on imported European cars he raised earlier this week. While the possibility of exemptions is a positive sign that trade dialogue is ongoing within the Trump administration, America’s international nameplate auto dealers and their 577,000 employees are hopeful for a tariff–free resolution that will allow their businesses to grow.”

The group noted: Both aluminum and steel are crucial to the production of cars and trucks sold in America today. Even with exemptions, these tariffs introduce new speedbumps to the already fraught NAFTA renegotiations now underway. Instead of using tariffs as blunt instruments of retaliation, America’s international nameplate dealers would prefer to see our government negotiate strategic trade agreements, like NAFTA, that benefit all citizens.

America’s 9,600 international nameplate auto dealers, the majority of which are family-owned businesses, employ more than 577,000 Americans, resulting in a payroll of $32 billion and an additional 527,000 indirect jobs. Last year, they sold 8.4 million vehicles to American consumers – 59 percent of total U.S. retail vehicle sales.

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