'Hope for the best': How Alabama's soaring auto industry could be stifled by Trump tariffs (al.com)
Updated Mar 22, 2019; Posted Mar 21, 2019
By John Sharp | jsharp@al.com
Toyota is an economic powerhouse in Alabama, promising yet more hundreds of millions in new investment. Donald Trump is a political darling among Alabama conservatives, and a heavy favorite to again win this deep red state in 2020.
But these two titans could be on a collision course if uncertainty over a potential 25 percent tariff on foreign automobiles and auto parts isn’t resolved soon.
If that happens, Alabama Republicans might find themselves caught in a vise and having to choose sides: The company that’s a jobs-generating jewel, or the president whom they adore.
Some Alabama lawmakers are already urging “patience” in the aftermath of Toyota North American executive Jim Lentz’s warning last week that the company could reconsider its planned $750 million investments in five Southern states if the tariff threats become reality.
Lentz’s bracing words come as automakers around the U.S. continue to deal with last year’s 25 percent tariff on imported steel and 10 percent tariff on aluminum.
Those tariffs have cost Ford and General Motors $1 billion each, and one analyst predicts Ohio would go into a recession if auto tariffs are added.
***
more: https://www.al.com/business/2019/03/hope-for-the-best-how-alabamas-soaring-auto-industry-could-be-stifled-by-trump-tariffs.html
I've included the in-line links because these articles are worthy of note on their own.
