US car parts tariff could seriously damage Australia’s manufacturing industry

By Galia Ilan

The US has announced that it is considering the implementation of another import tariff.

The White House is discussing the introduction of a tariff of up to 25% on imported cars, trucks, and vehicle parts.

The tariff has been suggested on the grounds of national security, as the US aims to reduce its reliance on imported production.

Wilbur Ross, the US Secretary of Commerce, announced that a national security investigation had been launched into the imports.


One of Australia’s largest manufacturing sectors is the production of vehicle parts, worth approximately AU$5bn (US$3.77bn).

Around 20% of that market is made of exports, at $1bn (US$754mn), and a third of that is exported to the US.

“It would have an impact on our sector — it’s hard to gauge what that is,” Stuart Charity, Executive Director of the Australian Automotive Aftermarket Association, informed The Australian.

“It’s quite alarming to be honest. At the moment there is a free trade agreement in place… the threat of a 25% tariff is a major blow for us.”

“We want to make sure we aren’t collateral damage caught in the cross-fire of a trade war.”


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