Fox 2 Detroit: John Taylor discusses proposed tariffs on overseas automakers
It's a move that could shake up the entire auto industry, not just here in the United States but across the globe. President Trump is proposing tough tariffs against overseas automakers. Depending on who you ask, it could accelerate the economy or put the brakes on affordable cars and trucks. "Remember that a lot of the production going on in Mexico and Canada is by U.S. companies," Wayne State University Associate Professor John Taylor said. Taylor says we have seen quotas on autos in years past dating back to the 1970's but not tariffs like these. "Once you cause the price of competing products that are imported to go up through a tariff, (U.S. automakers) are going to raise their prices. They're not going to leave money on the table," Taylor said. "If you disrupt the efficiency of the U.S. auto industry and the companies and disrupt their supply chains, it will harm those companies' profits long term," Taylor said.