Jennifer Safavian, CEO of Autos Drive America, which represents the U.S. operations of international automakers, said “tariffs just increase cost, ultimately to the consumer, and it creates so much uncertainty for the industry.”
In his efforts to negotiate better terms in U.S.-Europe trade, Trump has frequently threatened to levy tariffs on imported vehicles and auto parts from the European Union, though any action has been delayed amid attempts to reach a deal. If Trump is re-elected, Safavian said she expects the threat of Section 232 tariffs on imported autos and auto parts based on national security concerns to remain as well as the possibility of other tariffs.
A Biden presidency might take a close look at existing tariffs and work with allies to remove some and resolve the looming threat of tariffs on autos and auto parts. “I don’t think we would have to be so worried about that under a Biden administration,” she said.