First, a very brief recap of what has been done: Effective March 23, 2018, Trump imposed a 25 percent tariff on steel imports and a 10 percent tariff on aluminum imports, with exemptions for certain countries. Between July and September of last year, following an investigation into intellectual property violations by China, sweeping tariffs of either 10 or 25 percent went into effect on thousands of Chinese imports worth billions of dollars.
Now a recap of what could still be done: Following a report from the Department of Commerce, Trump continues to toy with the idea of possible tariffs on imported vehicles or vehicle parts. And, while the signing of the United States-Mexico-Canada Agreement (USMCA) in October 2018 could save the $1.2 trillion open-trade zone it created between the countries in 1994 with the North American Free Trade Agreement, the USMCA gives Trump the ability to place quotas on vehicles and parts Canada and Mexico can export into the U.S. (The USMCA must still be ratified by the three countries.)
I am sure there are people who believe Trump’s actions was the tough stance the U.S. needed to take with its trading partners. I also suspect there are others who might believe Trump’s actions had all the finesse of a sledgehammer.
Regardless of your assessment, the president appears to have sown the seeds of uncertainty within the industry — whether it be the specter of additional tariffs or a higher percentage on existing ones.
What’s more, the tariffs have created uncertainty and confusion regarding increased supplier pricing, which some say already is trickling down to aftermarket distributors and then on to their customers.
Uncertainty and confusion are not good for business.
