US auto industry warns new auto parts tariffs will hike prices, cut sales

WASHINGTON, April 22 (Reuters) - A coalition of U.S. auto industry groups urged President Donald Trump not to impose 25% tariffs on imported auto parts warning they would cut vehicle sales and raise prices.

Trump said earlier he plans to impose tariffs of 25% on auto parts no later than May 3.

"Tariffs on auto parts will scramble the global automotive supply chain and set off a domino effect that will lead to higher auto prices for consumers, lower sales at dealerships and will make servicing and repairing vehicles both more expensive and less predictable," said the letter signed by the Alliance for Automotive Innovation, the trade group representing nearly all major automakers, as well as the American Automotive Policy Council, representing the Detroit Three automakers, and other auto groups.