WASHINGTON (REUTERS) - An automotive trade group said on Tuesday (June 26) it would tell the Trump administration that a US threat to impose a tariff of up to 25 per cent on imported passenger vehicles under national security grounds would cost American consumers US$45 billion (S$61.3 billion) annually, or US$5,800 per vehicle.
The Alliance of Automobile Manufacturers, a group representing General Motors Co, Toyota Motor Corp , Volkswagen AG and other major automakers, will file written comments with the US Commerce Department later this week, spokeswoman Gloria Bergquist said.
"Nationwide, this tariff would hit American consumers with a tax of nearly US$45 billion, based on 2017 auto sales. This would largely cancel out the benefits of the tax cuts," Bergquist said, previewing the comments. Consumers would also face higher costs of imported auto parts when buying vehicles from both US and foreign automakers, she said.