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Reactions to Trump's auto tariffs

The U.S. president Donald Trump announced on Wednesday a 25% tariff for imported cars and light vehicles starting next week. This move will likely increase prices and slow production, according to auto industry experts.

What are your reactions?

TIFFANY SMITE, VP, of the NATIONAL FOREIGN TRADE COUNCIL (which represents many U.S. companies)

"Placing tariffs against imports of automobiles could damage the competitiveness and export-readiness of an industry which relies on international supply chains and market integration for its success.

We urge the administration, to prioritize the market opening opportunities of auto companies that manufacture vehicles for export from the United States.

SHAWN FAITH, PRESIDENT OF THE UNITED AUTO WORKERS UNION

We applaud the Trump Administration for taking action to stop the free-trade disaster that has devastated communities of working class for decades. The tariffs are a big step forward for blue-collar workers and autoworkers across the nation. It is now up to automakers to bring good union jobs back to the U.S.

SAM FIORANI, ANALYST FOR AUTOFORECAST SOLUTIONS

"Obviously, there will be winners and losers... companies that have spent hundreds of millions or billions of dollars in plants in Canada and Mexico are likely to see their profits drop dramatically over the next couple of quarters, if they don't even into a few years. We will adjust our production and sales forecasts, because it could cause chaos.

JESSICA CALLWELL, EDMUNDS Analyst

Many vehicle parts are imported from around the world, which will increase repair costs and reconditioning fees for dealers. As accidents that involve new parts are more expensive, insurance premiums may also increase.

DOUG FORD, ONTARIO'S PREMIER

"The additional US tariffs announced of 25% on passenger cars and light trucks that are not made in the U.S. is a fatal message for free and rule-based trade... German automakers are calling for an immediate bilateral agreement between the U.S., and the EU. "The risk of a trade war is high for all parties. It could have negative effects on the global economy, growth, jobs, and consumer prices."

UK'S SOCIETY OF MOTOR MANUFACTURERS and TRADERS CEO, MIKE HAWES

"Today's President Trump announcement is not surprising, but it is disappointing if additional tariffs will be applied to UK-made cars, as appears likely.... Instead of imposing additional duties, we should explore how opportunities can be created for both British manufacturers and American ones as part a mutually advantageous relationship."

CHUCK CARLSON CHIEF EXECUTIVE OFFICER HORIZON INVESTMENT SERVICE, HAMMOND (INDIANA)

"I have been a little suspicious about all the tariff discussions in terms of how long they will last, whether it is a real negotiation or if something is being pulled at the very last minute. "My initial reaction was that this tariff could have legs."

There will probably be exemptions or modifications made for some U.S. automobile manufacturers... I can see that the U.S. automobile manufacturers could get some exemptions because of their supply chains. "I think he would rather see how it goes than stop in two or three weeks."

BRAD SETSER SENIOR FELLOW, COUNCIL FOR FOREIGN RELATIONS, ON X

"Adding parts complicates the lives of BMW and Mercedes in SC, Alabama. Ford and GM benefit from the exemption of US content (and Canada and Mexico on the margin). Imports from Korea, Japan and China have almost no US-content."

(source: Reuters)