auto tariffs

In the 1960s, the German government put a tariff on American chickens. President Johnson then retaliated with a tariff on light-duty commercial vehicles and trucks. The back-and-forth has come to define the U.S. auto industry.

Sales were buoyed by expectations that prices would rise even more soon, tarrif concerns, and now-ended electric vehicle tax credits.

The question is, will the good news continue?

The U.S. has punitive tariffs on Chinese electric vehicles, which effectively blocks imports. Still, many Chinese EV brands are expanding their markets and going abroad with models that are both packed with features and cheaper.

The administration says the electronics could transmit sensitive information about U.S citizens and infrastructure. But it’s also worried about the impact of Chinese EVs on U.S. automakers.

A new report says factory activity barely grew in June, fueling concern about the trade war’s impact on U.S. manufacturing.

The Trump administration has threatened to levy a 5% tax on Mexican imports next month, which could go as high as 25%.

Or whether Japan can actually deliver.

Trump meets with Japanese Prime Minister Shinzo Abe over Memorial Day Weekend, just days after the administration said auto imports are a threat to national security.

"I am cautiously pessimistic" about trade in this economy, a member of the motor vehicle supplier industry says.