Auto Dealers Warn Trump's Nafta Proposal May Raise Car PricesBy
Auto dealers are warning President Donald Trump’s effort to require a percentage of U.S. content in vehicles may depress demand.
“Anything that raises the price of a car will affect ultimately consumers and automobile sales,” Mark Scarpelli, the chairman of the National Automobile Dealers Association, said Tuesday in Detroit. “We are concerned, but at the end of the day, we don’t know what the rule-making is going to be.”
The Trump administration is expected to call for stricter automotive rules of origin as part of talks to overhaul the North American Free Trade Agreement that resume this week. Nafta requires that 62.5 percent of car content be sourced from the continent to avoid tariffs. Key business groups such as the Chamber of Commerce have said a Trump proposal requiring substantial U.S. content is a non-starter.