Beyond the Hysteria about Auto Tariffmageddon

After decades of relentless offshoring, the equation may change for automakers and component makers.President Trump’s threat to impose tariffs of 20% or 25% on auto components and vehicles imported to the US is causing a bout of hysteria that is splattered all over the media.The auto industry lobbying group, Alliance of Automobile Manufacturers, is now claiming that a 25% tariff on imported vehicles and components would cost US consumers $45 billion a year, or $5,800 per vehicle. “This would largely cancel out the benefits of the tax cuts,” it says.I have serious doubts about those numbers, and “propaganda” comes to mind. But even it they’re…