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

By Sophie Chapman
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...

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.

SEE ALSO:

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.”

Share

Featured Articles

How technology has improved Health & Safety in manufacturing

Johann Cilliers, Group Marketing Director at Welding Alloys, explains how technology has improved Health & Safety in the manufacturing industry

Nick Dinges, Replique CTO, explores additive manufacturing

Replique’s CTO Nick Dinges shares his knowledge on 3D printing, how localised production can help supply chains & what the manufacturing sector wants

Hanwha to spend US$2.5bn on US solar manufacturing

South Korean chemical manufacturer Hanwha will spend US$2.5bn on US solar manufacturing at Georgia plant, in a new renewable energy push

Hexagon invests in Divergent Technologies digital factories

Digital Factory

India’s smart manufacturing electric vehicle future

Smart Manufacturing

Manufacturing a legacy of safety, sustainability, and skill

Procurement & Supply Chain