Global automakers tout benefits of free trade

In the 25 years since President Bill Clinton signed the North American Free Trade Agreement, the annual number of U.S.-produced light vehicles grew little — 10.9 million in 2018, up from about 10.6 million in 1993.

While the annual output of U.S. automakers fell by 2.9 million — even including those made by Tesla, which didn't exist in 1993 — foreign automakers more than made up the difference, increasing their production by 3.25 million.

Foreign automakers' contributions to the U.S. economy were highlighted last week by "Here for America," an initiative of the Association of Global Automakers, whose members include Asian and European brands. The economic impact report, highlighting $88 billion in investments supporting 2.58 million jobs, was released as President Donald Trump held his third annual "Made in America Product Showcase" in Washington and provided evidence that freer trade encourages investment in the U.S.

While the president applauds manufacturing investments, his threats to tax vehicle and auto- parts imports by as much as 25 percent add uncertainty and potential costs that make it hard to do business, said Global Automakers CEO John Bozzella."We need to focus on providing more opportunities for investment in the U.S. as well as more opportunities for exports around the world," he told Automotive News. "Which is why the entire auto industry is concerned with the possibility of 25 percent tariffs on auto parts and auto imports."

After declaring in May that automotive imports are a national security threat — and therefore subject to tariffs — the administration delayed action for 180 days so it can try to renegotiate trade deals with Japan and the European Union.

"Automotive parts imports and automotive imports are absolutely not a threat to national security," Bozzella said. "In fact, the opposite is the case. That's why all car companies, dealers, suppliers and aftermarket industries are concerned with high auto tariffs."