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Howes: Trump's "big border tax" could mean higher price tags at dealerships

Jan 5, 2017

The U.S. auto industry came into the crosshairs of President-elect Donald Trump's Twitter feed this week. Trump aimed a Tweet straight at General Motors, grumbling about GM's building of the Chevy Cruze in Mexico.

A day later, he gave a hat-tip to Ford.

Detroit News business columnist Daniel Howes joined Stateside to break it all down. 

This tough message being sent to the automakers is something that the public has been wanting to hear for a long time, according to Howes. However, just as he wrote in his recent column in the Detroit News, Trump's approach to strong-arming General Motors and Ford ignores the realities of a very globalized auto industry.

Howes points out that GM building its Buick Envision in China, and Fiat/Chrysler building its Jeep Renegade in Italy are just two examples of how automakers rely on foreign production. Not to mention several parts that are constructed in foreign countries and shipped to the U.S.

Howes is quick to point out that those who are celebrating Trump's approach to make automakers "Build America" aren't going to be happy when the price tags of those vehicles go up as a result of that "big border tax." 

Listen to the full interview above to hear more about the political conflict taxes on the auto industry could create in the United States and what the Trump administration can do to help bring jobs and production back to the U.S.

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