Metro Detroit automotive groups prepare for Trump tariffs impact
Automakers prepare for Trump tariffs, as Metro Detroit automotive groups brace for impact
President Donald Trump put up a Feb 1 deadline for adding tariffs, which are taxes on imported goods from Mexico and Canada. This, according to the administration, is unless those countries stop the flow of illegal immigration and drugs onto our soil.
DETROIT (FOX 2) - An automotive group in Metro Detroit is one of many that is bracing for the impact of possible tariffs imposed by the Trump Administration.
What they're saying:
George Glassman of the Glassman Automotive Group says he is preparing himself for what could make everyone's next car even more expensive, according to expert accounts.
What we know:
President Donald Trump put up a Feb 1 deadline for adding tariffs, which are taxes on imported goods from Mexico and Canada. This, according to the administration, is unless those countries stop the flow of illegal immigration and drugs onto our soil.
A 10% tariff on Chinese imports would also be added to what Trump says is China's part in the fentanyl crisis.
"You know this is uncharted territory," said Glassman. "I think that it would be pretty difficult to overcome depending on the dollar amount of the tariff but make no mistake about it - it’s a serious situation. All the car companies are concerned about it."
Former auto supplier executive Jan Griffiths says the Big Three automakers have already prepared for this as they are ready to put those taxes on a bigger price tag that you'll see when shopping for new wheels.
It is happening amid so much uncertainty. It's one reason why General Motors stock took a hard hit after the company posted its latest earnings report.
"They actually beat the Wall Street expectations," said Griffiths. "So you think - great but their stock dropped 9% because the market felt that they didn’t provide enough guidance on how they were going to handle tariffs. Well, it’s very difficult to say how you are going to handle something that isn’t here yet."
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"I’m confident that I’m going to be able to find some common ground with the next administration," she said.