Volkswagen and Audi diesel cars
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REUTERS/Lucy Nicholson

Sherman Robinson (PIIE), Karen Thierfelder (US Naval Academy), Jeffrey J. Schott (PIIE), Euijin Jung (PIIE), Zhiyao (Lucy) Lu (PIIE) and Melina Kolb (PIIE)

President Trump is reportedly considering raising US duties to 25 percent on all imports of automobiles—including SUVs, vans, and trucks—and auto parts, invoking the same national security law recently used to impose tariffs on steel and aluminum. A new PIIE analysis shows that if he did this, production in these industries would fall 1.5 percent and cause 195,000 US workers to lose their jobs over a 1- to 3-year period or possibly longer. The US auto and parts industries would shed 1.9 percent of their labor force.

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Photo Credit: REUTERS/Lucy Nicholson