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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?

NATIONAL FOREIGN TRADE COUNCIL (NFTC), WHICH REPRESENTS A LOT OF U.S. COMPANIES. VP TIFFANY SMITEH

"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 ravaged working class communities over the past 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

"Clearly, there will be winners and losers. Companies who have invested hundreds of million and billions of dollar 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 car dealers. As accidents that involve new parts are more expensive, insurance premiums may also increase.

DOUG FORD, ONTARIO'S PREMIER

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. Rather than imposing more tariffs, we need to explore how to create opportunities for both British manufacturers and American ones as part of a reciprocal relationship."

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

"I have been sceptical about all tariff talks, in terms of whether they will last, if it is a real negotiation or if something is just a ploy to get traction at the last moment. "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." (Reporting from Andrea Shalal in Washington, Nandita in Detroit, David in Ottawa, and Unnamalai in Bengaluru. Additional reporting by Global Finance & Markets Breaking News Team. Editing by Peter Henderson, Matthew Lewis.

(source: Reuters)