The industry', which has been careful to mostly praise the “pro-business” policies favored by the Trump administration, wants to make sure the administration and
“Tax reform should not be financed by an increase in border taxes and goods, taxes that will drive up the prices of trucks and cars sold in the
Scarpelli urged dealers to talk to lawmakers to oppose the idea even though no specific legislation has been introduced.
“We need to make sure that
Scarpelli wasn't alone. The leaders of two lobbying groups, a highly-ranking
As proposed by
Some in the automotive industry have begun to believe that the border adjustment tax has already lost substantial support and is never going to make it through
“I come from the school of politics that it's never dead until it's actually dead,” Bozzella said. “Look, this is a proposal that raises taxes to cut taxes. And it raises taxes on every single car that every single dealer in this room sells.
“This raising taxes to lower taxes just should not be done.”
Trump hasn't specifically endorsed the border adjustment tax but has talked frequently about imposing a 20% or 30% tariff on goods from
“I don't like the word 'adjustment', because our country gets taken advantage of, to use a nice term, by every other country in the world,” Trump told
“Let's call it an import tax. Let's call it a reciprocal tax,” he added. “Nobody gets angry when you say reciprocal tax.”
Trump made “America first,” and manufacturing jobs a centerpiece of his presidential campaign. Since he was elected, Trump has met multiple times with the CEOs in the automotive industry. He also has taken credit for a number of jobs and plant investments even though most of them were planned months, if not years, ago.
“We think that's intriguing. And part of it is because we are a big exporter,” Fields said at the New York International Auto Show on Wednesday.
In 2016, 80% of the vehicles
“If you look at (the border adjustment tax) in its current iteration — and I am sure it is going to change a lot …it's probably neutral to positive for us,” Fields said.
Bozzella argued that
“The fact is,
Carter said 75% of the parts on the Toyota Camry, which is built in
“But 25% of them come from an international supply chain,” Carter said. “And keep in mind that's the best, most
Carter said industry studies have shown that the border adjustment tax would increase the cost of a car by
Higher prices also could cause vehicle sales to fall by 1 million to 2 million, he said.
“So please, please keep the heat on your congressmen and senator,” Carter told the dealers in the audience.
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