Barkin: Auto firms likely to face tough choices on pricing, margins

LEXINGTON, Virginia, March 27 (Reuters) - Richmond Federal Reserve President Tom Barkin said he did not expect consumers to face the full brunt of the 25% tax the Trump administration has set on imported cars, but added firms will have difficult choices ahead on pricing and profit margins.

"My instinct is that the blunt top line number will not be the number that is faced by consumers," Barkin said. "You have to compete ... People have to face that. There are issues like exchange rates and other accommodations ... The companies are going to have to face the question of do you try to give it to the consumer, do you take it in margin, or do you lower cost somewhere else in your process."