Automakers are ‘Freaking Out’ Over the Prospect of Tariffs on Cars

Everyone in the automobile industry doesn’t matter if you’re a retailer, a supplier or a manufacturer is freaking out around tariffs on automobiles,” Mike Jackson, chairman and chief executive officer of AutoNation Inc. said Wednesday on Bloomberg Television.

By: | Updated: September 20, 2018 10:25 AM

The auto industry fears that President Donald Trump’s threats to place tariffs on vehicles coming into the U.S. could drive the economy into a recession, the head of the largest auto retailer in America said today.“Everyone in the automobile industry -- doesn’t matter if you’re a retailer, a supplier or a manufacturer -- is freaking out around tariffs on automobiles,” Mike Jackson, chairman and chief executive officer of AutoNation Inc., said Wednesday on Bloomberg Television. “The price point is so big, we all know it would be extremely disruptive, extremely expensive to the industry and most likely knock the economy into some sort of recession because it’s so inflationary.”

Jackson, who is also chairman of the Federal Reserve Bank of Atlanta, said he hopes trade deals can be reached with Europe, Mexico and Canada that will avoid auto tariffs that Trump said could be as high as 30 per cent on vehicles imported into the U.S. The president has already imposed tariffs on foreign steel and aluminium, as well as a
variety of goods from China.

Watch our video review of New Honda CR-V Diesel

“Auto tariffs would make steel and aluminum tariffs look like a company picnic,” Jackson said. “It is the big one. So it’s incomprehensible that there won’t be a solution around this whether it’s with the Europeans or within” the North American Free Trade Agreement.

Get the latest cars price and upcoming bikes price in India exclusively at Financial Express. Stay tuned for new cars and bikes reviews, follow us on twitter, Facebook and subscribe us on YouTube for latest auto news.