American Automakers Won’t Rush US Production Shift Due to Tariff Instability
President Trump’s assertion that automakers can easily avoid tariffs by relocating production to the US is inaccurate. The proposed tariffs, impacting steel, aluminum, and vehicles from various countries, would significantly increase production costs and create substantial uncertainty for automakers. This uncertainty, coupled with the lengthy timelines required to build new plants, prevents immediate large-scale relocation despite the substantial costs already incurred from prior tariff implementations. Even if production shifts to the US, the tariffs would still inflate vehicle prices significantly, potentially reducing consumer demand and harming the industry overall.
John Q. Hosedrinker