'I think everybody's concerned': Mercedes-Benz plant eyeing impacts of imported vehicle tariffs
New 25% tariffs on imported vehicles are scheduled to start on Thursday that could impact our state.
Trump has long said that tariffs against auto imports would be a defining policy of his presidency, betting that the costs created by the taxes would cause more production to relocate to the United States.
But U.S. and foreign automakers with domestic plants still depend on Canada, Mexico and other nations for parts and finished vehicles, meaning that auto prices could increase and sales could decline as new factories take time to build.
>> What is a tariff and who pays it?
Alabama is home to several auto assembly plants such as Honda, Hyundai, Mazda, Toyota and Mercedes-Benz.
The Mercedes-Benz plant, located in Tuscaloosa County, is a big deal to the Alabama economy. More than 6,000 employees work at the 6 million square-foot plant in Vance.
There's also a 3 million square-foot plant in Bibb County.
Mercedes-Benz told 米兰体育 13 in a statement that they are eyeing the impact of the tariffs, as the company relies on trade across international markets. They also said that they support free and fair trade that underpins prosperity, growth and innovation.
Watch below to see the possible political consequences of President Trump's new tariffs this week.
Sen. Tommy Tuberville is hoping people will understand the decision behind the tariffs once they hear Trump plan.
"I think everybody's concerned obviously my constituents in Alabama we have a lot of car manufacturing in the country, which is good because if they're made here, you don't have to pay the tariff. Obviously, there's parts going in and out that will be tariffed, but I think Wednesday, President Trump will communicate hopefully, from a big press conference and give a speech about what he's doing and why he's doing it, what direction we're gonna go. I think it will calm the American people down. It will calm the economy down a little bit," said Tuberville.
Slightly more than one million people are employed domestically in the manufacturing of motor vehicles and parts, about 320,000 fewer than in 2000, according to the Bureau of Labor Statistics. Another 2.1 million people work at auto and parts dealerships.
The United States last year imported nearly 8 million cars and light trucks worth $244 billion. Mexico, Japan and South Korea were the top sources of foreign vehicles. Imports of auto parts came to more than $197 billion, led by Mexico, Canada and China, according to the Commerce Department.
This article contains information from The Associated Press.