The auto industries of major auto exporting countries are banding together to formulate a response to the US’s threat of 25% tariffs on cars and auto-parts imported into the US.
According to Reuters, senior government officials from Canada, the European Union, Japan, Mexico and South Korea will meet in Geneva this coming week for talks on a way to respond to the tariffs, if they come into being, which analysts say would cause new vehicles prices to skyrocket, drying up sales and auto-industry jobs.
Although Reuters did not speculate on what kind of countermeasures would be, it did report that several options are being considered, including tariffs on US exports, and getting the World Trade Organization (WTO) involved; representatives of the group are to meet with WTO chief Roberto Azevedo today to discuss the matter.
The US recently recanted the notion of imposing tariffs on EU auto exports in exchange for lower trade barriers on US exports, so auto company CEOs are hopeful that the tariff decision may be overturned. The US is currently conducting a probe into the effects of auto imports on US national security.