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Trump Tariffs Would Cost U.S. Automakers Billions, Study Finds

  • Boston Consulting Group sees car shoppers forgoing features
  • As many as 50,000 supplier jobs could disappear as costs rise
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Rep. Pascrell Questions Trump's Approach to Nafta

Exiting Nafta and implementing tariffs or a border-tax system would drive up U.S. car costs and put thousands of supplier jobs at risk, not stimulate auto-making like President Donald Trump hopes, according to a Boston Consulting Group study.

In a report released Wednesday, the consultant estimated added costs to the U.S. auto sector from two policies being considered by Washington lawmakers: withdrawing from the North American Free Trade Agreement and introducing tariffs instead, or adopting a so-called border-adjusted tax. Either scenario would be costly, BCG found, with a 35 percent tariff on Mexican parts driving up U.S. auto-making costs by an average of $1,145 per car, and a 20 percent BAT adding $1,800.