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Trump's 25% Auto Tariff Plan Faces Opposition at US Hearing

Written: 2018-07-20 13:19:56Updated: 2018-07-20 17:03:35

Trump's 25% Auto Tariff Plan Faces Opposition at US Hearing

Photo : YONHAP News

Anchor: The U.S. Department of Commerce is hosting two days of hearings on whether Washington should raise tariffs on imported cars and auto parts up to 25 percent. Dozens representing domestic and international companies and labor groups voiced their concerns along with officials from Korea, Japan and the European Union. 
Kim Bum-soo has more. 

Report: 

[Sound bite: Jennifer Adair - Quality Team Leader, Toyota Motors Indiana (English)]
"A 25 percent tariff on imported autos and auto parts would only lead to fewer sales which leads to fewer American jobs. We cannot let that happen." 

U.S. President Donald Trump's claim that imported cars and auto parts are a threat to U.S. national security has met fierce opposition. 
 
On the first day of Commerce Department hearings in Washington on Thursday, over 40 trade officials and auto industry representatives from around the globe argued stiff tariffs are not the solution.

[Sound bite: S. Korean Deputy Minister for Trade Kang Sung-chun (English)]
"Korea is a key security ally and a trustworthy trade partner of the U.S."

Seoul's Deputy Minister for Trade Kang Sung-chun told American commerce officials that higher tariffs could damage the fundamentals of the South Korea-U.S. free trade agreement. 

[Sound bite: S. Korean Deputy Minister for Trade Kang Sung-chun (English)]
"Our two countries have just reached an agreement in principal on amending the KORUS FTA... Negotiations this March were focused primarily on autos. As such, we believe that Korea does not undermine or diminish in any way the national security of the U.S."

Representatives from Hyundai, Kia and other major international automakers argued that imposing costly tariffs would hurt U.S. economic growth.

[Sound bite: John Hall - Engine Maintenance Team Member, Hyundai Motor Manufacturing Alabama] 
"Imposing tariffs on Hyundai vehicles or auto parts will jeopardize our livelihood today and future jobs for the next generation of Hyundai Motor Manufacturing Alabama team members."

[Sound bite: Stuart Countess - Chief Administrative Officer, Kia Motors Manufacturing Georgia]
"While we recognize that free and fair trade makes the United States competitive broad restrictions such as tariffs on autos and auto parts will raise costs for our customers and their families. That's why we echo the plea 'Don't tax my ride.'" 

European Union officials warned that the EU is already coming up with retaliation measures should the Trump administration proceed with the plan.

The Center for Automotive Research estimated imposing a 25 percent tariff on auto imports would raise the price of a 35-thousand dollar car built in the U.S. by two-thousand-270 dollars. Imported car prices are expected to rise by nearly seven-thousand dollars. 

Trump is widely expected to make up his mind by late August or early September. If he decides that imported cars are indeed a U.S. national threat, the new tariffs will go into effect after 15 days.
Kim Bum-soo, KBS World Radio News.

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