Tariffs increasing headwinds for US auto sector, says expert

Reducing tariff barriers and creating more market access opportunities will help the US auto industry to offset headwinds from global trade uncertainties, an industry official said.

Speaking at the "US Automotive Industry Needs Free Trade" discussion at The Heritage Foundation on Tuesday, John Bozzella, president and CEO of Association of Global Automakers, said the "misapplied 232 tariffs" are driving up costs for the industry, while uncertainties in the current trade policy are causing headwinds for the sector, whose future lies in exports.

The US has maintained an auto trade surplus with China, said Bozzella. "In 2017, the US exported nearly 260,000 cars and trucks to China. We export way more cars built here in America by Americans to China than we import from China," he said.