Butzel Long attorney Kate Karol quoted in the Wall Street Journal: Tariffs Loom Over Car Makers, Despite Mexico Deal
The auto industry continues to weather trade-related fallout despite a deal the U.S. and Mexico struck last week that shelved the Trump administration's plan to impose a 5% tariff on imports.
Auto manufacturers were relieved because a new tariff would have raised costs for car companies and parts suppliers that have grown dependent on Mexico for lower-cost factory labor. But the specter of new import duties remains a threat to the auto business on multiple fronts, including with the continuing trade dispute between the U.S. and China; the new free-trade deal struck last year with Mexico and Canada that must still be ratified by Congress; and Mr. Trump's assertion this week that "tariffs are a great negotiating tool."
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