President Donald Trump's threat to impose tariffs on foreign vehicles may not come to pass, after Commerce Secretary Wilbur Ross said it's "premature" to say the plan will move forward in a Monday appearance on CNBC.
Last week, General Motors said the tariffs could backfire and lead to "less investment, fewer jobs, and lower wages" for its employees, the New York Times reported on June 29.
Hyundai Motor Co., BMW AG and several parts suppliers have also warned against the implementation of the tariffs. In a letter to Ross, Canadian parts maker Magna International Inc. chief marketing officer, James Tobin, said the tariffs "would weaken the U.S. economy and threaten to undermine the entire U.S. automotive industry," reports Bloomberg.
In BMW's letter to Ross, the Munich-based automaker cited its South Carolina plant that employees 8,000 workers and produces nearly 500,000 luxury SUVs each year. The majority of the vehicles are imported to other countries, including the EU and Canada. The company suggested that it could move production if it becomes unprofitable to continue operations in the U.S., reports The Drive.
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