In a recent heated up conversation, Trumps ‘Auto Tariffs’ and his ‘distinct’ political vision is in the limelight all over again. With the new rules put on by Trump, it’s expected that car owners would have to pay more than ever on a small section of vehicles, automakers would lose sales and thus, there would be an overall loss of jobs.

With the vision of America first policy, in a recent Tweet, the US President Donald Trump tweeted to the automakers, ‘There will be big news coming soon for our great American Autoworkers. After many decades of losing your jobs to other countries, you have waited long enough!’.

However, the major reason for the controversy here is that, Canada and Mexico are two of the biggest sources of imports to which these new rules won’t apply because of the re-negotiating NAFTA agreement. Cars that are imported from other countries such as those from Asia and Europe, belong to the section of Luxury Sedans and small economy cars that comes cheap because of lower labour costs. However, with this new policy, the demand for economy cars would go in a drain and people would have to pay the same price for high-end cars as they would be for the sedans and the economy cars. Additionally, this won’t help in promoting US auto plants and creating more jobs.

According to reports, if the new Auto-policy of Trump is applied, it can increase the tariffs on car imports by up to 25%, on the grounds of national security risk. A CEO of a car manufacturer said that, the new tariffs would actually increase a net 10% in the cost of manufacturing of cars. Thus, it is nothing, but a job killing policy that will further disbalance America’s wealth.

Here are the latest stats – Its estimated that Michigan would lose around 14,000 net jobs, Ohio will lose over 15,700 net jobs, Pennsylvania would lose about 16,500 net jobs, while Wisconsin would lose 8,900 jobs. Thus, contrary to Trump’s mission, there would be an overall net loss of jobs instead of making it a profitable proposal. America is already spending too much on heavily traded food and clothing items and this new policy would further curb their capacities to buy vehicles due to lowered overall purchasing power ability. Moreover, it is also feared that the move would also raise the cab tariffs for the time being.

The business class and the members from his own Republican Party have warned Trump that his global trade war with fast growing economies of countries such as China, India and other labour intensive countries, can ultimately shut down the slow-paced US auto industry. Despite the huge talk on trade wars in the White House, it certainly isn’t a good approach for a much thrived globalisation policy that people across the world are cherishing for years.

The governments of the countries that are the largest auto-exporters to the US, such as China, Japan and South Korea, said that they will keep an eye on the next contradictory statement of Trump and take necessary action against it, and also added that that the move can defend their interest in several other trade niches as well.