Trade Impact Of Auto Industry

- Feb 14, 2019-

PercPineda, chief economist at the Plastics Industry Association, said he did not believe the impact of tariffs on the economy was "correct." Instead, it will depend on which business model. I was deployed by an individual company.

For example, a turnaround retailer that imports strictly from China is likely to cut tariffs by just 25%. But importers of raw materials and components will push themselves out of the market if the industry tries the same strategy.

"our trade dispute with China has brought pain to the plastics industry," Pineda said. "the situation in the rubber industry is much the same, as if we were given the same number of restrictions without imposing higher tariffs."

On a more positive note, Pinheida said the rubber and plastics industry would benefit from the U.S.-Mexico-Canadian trade agreement, which aims to replace the North American Free Trade Agreement (NAFTA). The legislatures of these three countries carried out the SED. Specifically, the requirement that cars must have 75% of the parts made in the United States, Mexico or Canada.

He added that the updated U.S.-South Korea Free Trade Agreement would also benefit the rubber and plastics industry because it would provide U.S. companies with more export channels to coordinate testing. Demand, recognition of U.S. auto parts standards, demands to raise corporate average fuel economy standards, and provision that South Korea will address longstanding customs concerns.

Pinheida said: "We have more opportunities to enter [Korea]." This is a step in the right direction. " "I think we will eventually increase exports to South Korea."

President Trump has had a major impact on automakers by imposing a 25 percent tariff on imported steel and a 10 percent tariff on aluminium imports. It is unclear whether Mexico and Canada will do so. W's footsteps and exceptions in Brazil and South Korea.

Kuehl said both countries-South Korea and Brazil-could be exempted from U.S. steel exports if they approved the U.S. MCA,.

But overall, tariffs have not succeeded in solving the problems of U.S. steelmakers. Quill said the government's mandatory fuel efficiency requirements hurt these problems and they are important. American automobile produces steel quantity big, oil pipeline is underdeveloped, consume a lot of steel again.