Blow to the Auto Industry: Washington Closes the Door on Aluminum Tariff Exemptions

Major automakers in the United States received a painful blow after the US government officially announced its complete rejection of requests to exempt them from aluminum import tariffs. These companies had pleaded for an emergency exemption from the 50% tax after the largest domestic aluminum production plants suffered massive fires that led to production halts and raw material shortages. The US administration deemed the companies' justifications insufficient to suspend the previously mandated protective tariffs. This governmental refusal will constitute a heavy additional burden on automakers who will struggle to absorb these sudden costs, making it highly likely that they will raise the selling prices of new cars to the public to compensate for their losses and the high cost of essential production inputs.