Ford shares are trading higher Wednesday, as a group it is part of, the Automakers Alliance, has warned that any US tariffs on imported EU cars and car parts would hurt the US auto industry. It joins the Global Automakers group in stating that import tariffs on that part of the industry could cost jobs and limit choice.
By 1510 BST, Ford shares were 0.48% higher at $11.58. The stock has been moving broadly lower in recent weeks. Ford isn’t the only member of one of the auto industry groups. As such, GM and Fiat shares are both also trading in the green.
Auto industry shares tariff concerns
Both the Automakers Alliance and Global Automakers group published detailed press releases earlier Wednesday in relation to the news that the US administration is considering imposing import tariffs of up to 25% on EU imported cars and parts.
“We are finishing our study of Tariffs on cars from the EU in that they have long taken advantage of the US in the form of Trade Barriers and Tariffs. In the end it will all even out - and it won’t take very long!” Trump tweeted Tuesday.
US auto-related tariffs threaten jobs
According to the Automakers Alliance, a 25% European car import tariff could result in up to 195,000 job cuts over just three years. It added that US buyers of imported EU cars would face an average price increase per car, of $5,800.
“While we understand that the Administration is working to achieve a level playing field, tariffs are not the right approach,” the Automakers Alliance said. “Tariffs on autos and auto parts raise vehicle prices for all customers, limit consumer choice and invite retaliatory action by our trading partners.”
The Global Automakers group, meanwhile, share their concerns on jobs and price.
“These tariffs will harm today’s US auto industry,” said Global Automakers’ President and CEO John Bozzella.“There is no national security justification for taxing imports of vehicles and parts or discriminating between global companies headquartered here or in allied countries.”