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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  • Paul I don't know how GM can fail to sell sedans. Other manufacturers seem to be able to, as others have noted. The Impala (which I've had as a rental) was a very nice sedan and the Malibu (which I had as a rental more recently) was a pleasant, competent vehicle also. Maybe they are still suffering from the bad rep they got in the malaise era into the 80s.
  • Kwik_Shift_Pro4X How a Versa that's a $18000 car became a $24000 car says a lot. Or even the jacked price of the current Frontiers. Not worth it.
  • MaintenanceCosts They should focus on major non-Interstate routes in the flat West. I recently did a central Texas trip with a Model S rental. It was just fine along the interstates but there were significant gaps on the big federal highways, which caused a bit of extra driving to reach charging stations. The one public (non-"customers only") charger in the greater Fredericksburg area was very busy, even at non-peak times.
  • Tassos Real Cars are RWD.So if you want a Lexus, try either the GS, or the flagship LS460 (before they mutilated it into the current failed model)The ES used to be a rebadged Camry, then became a rebadged Avalon at $10k more. Not a wise buy, unless you are a silly snob and would not be caught dead driving an econobox.
  • Ajla Sounds like the pinstripes, nitrogen, window tint, TruCoat, and "filing fee" is about to go up. It is pretty fun to see a $18K Versa with $3k in add ons.