Trade War Watch: As Commerce Secretary Ponders Auto Tariffs During D.C. Hearing, Automakers Call Out the Troops

As the United States considers imposing new tariffs of up to 25 percent on imported automobiles and parts, the industry has rallied together to stand against the proposal. Manufacturers already made individual cases for themselves and are now dropping very bleak-sounding industry projections on the U.S. Commerce Department in the hopes of changing the administration’s mind.

However, President Donald Trump continues to promote the imposition of tariffs to force a sort of economic justice. For years, China’s protectionist policies regarding automobiles forced American manufacturers to build inside its borders and partner with Chinese firms for years. That’s something Trump claims could be a national security risk. China also recently upped its tax on American-made autos to 40 percent, shortly after promising to lower them. Meanwhile, Europe still holds a consistently higher tariffs on imported cars than the U.S., except for light trucks.

Commerce Secretary Wilbur Ross seems aware that China may have gamed the system in its favor, but appears less convinced that it’s a matter of national security. On Thursday, during a hearing on the probe into the industry, he said it was “too early” to say what the United States would do. Meanwhile, auto groups continue to make their terrifying case. (There’s also quite a bit of rolling PR in downtown D.C. today, as you’ll see below.)

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A Detroit/Silicon Valley War Is In The Air(waves)

The Alliance of Automobile Manufacturers on Thursday sent a letter to the heads of the Federal Communications Commission, U.S. Department of Transportation and U.S. Department of Commerce, urging the groups to keep dedicated a frequency spectrum for future car communication systems.

The spectrum, which is between 5.850 GHz and 5.925 GHz, was allotted to automakers for car-to-car communication and road-to-car communication. Telecommunications and Wi-Fi industry officials have asked to share the spectrum.

“Um, no,” in the nicest possible way, from the Alliance:

We are committed to finding the best path forward to protect the development and deployment of advanced automotive safety systems while also considering the need for additional unlicensed spectrum to meet the increasing demand for wireless broadband Internet services.

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  • Seanx37 If it made economic sense, it would have happened decades ago. No one would insure such places. And few are going to take $60-150k electric cars off road unless they are very wealthy
  • MaintenanceCosts Seems pretty obvious that they're leaving room for a SRT with the 2.0T and the electric motor. The R/T will probably be slower than the GT given the extra weight, but without the 9-speed it will be a much nicer drive.
  • Art Vandelay Lawyers would Eff it up. That and the NIMBYS. I agree with you, but it ain't gonna happen
  • EBFlex They are getting rid of the Charger and Challenger for a modern day Neon?just end it Dodge, you had a great run
  • Garrett Frankly, I don’t understand why some of the manufacturers haven’t lobbied for more areas, or built their own. Imagine being able to access a local Jeep park, at a reasonable membership fee. Or a Land Rover one for a lot more. That’s money worth throwing down.