Proposed Car Tariffs Could Drive Up Prices Of American Cars
CHICAGO (CBS) -- A car tariff proposed by President Donald Trump is raising red flags with automakers.
The 25% tariff would apply to imported cars, trucks, and auto parts, which is a move that could drive up costs for American consumers.
The Center for Automotive Research says the tariff would mean paying as much as $4,400 more for cars made in the U.S. and nearly $7,000 more for imported cars and trucks.
The White House says imports eroded America's domestic auto industry. Workers from the auto industry gathered with lawmakers from both parties to send a message to the Trump Administration.
"A 25% tariff on imported autos and auto parts would only lead to fewer sales which leads to fewer American jobs," said Jennifer Adair of Toyota Motors in Indiana.
President Trump has already ordered tariffs on steel and aluminum imports.
The Center for Automotive Research says auto tariffs would wipe out more than 700,000 jobs.