MAJOR CAR MANUFACTURERS SUE THE TRUMP ADMINISTRATION

On August 1, 2019, President Donald Trump of the United States announced that he would impose a 10% tariff on $300 billion worth of Chinese products beginning September 1, 2019. Soon after this declaration, Trump tweeted an additional imposition, bringing the rate up to 15%. Trump's administration introduced the tariffs in an effort to bring China to the negotiation table after claiming that the country had unfair trade practices that hurt U.S. manufacturing.

This imposition didn't sit well with a lot of people, ranging from consumers to manufacturers, to the world trade organization (WTO). Final consumers clamoured because the imposition implied that they would have to pay higher prices for products.

On September 15, 2020, the world trade organization said that President Donald Trump’s tariffs on Chinese goods break international trade rules.

In late September 2020, major car manufacturers including Tesla Inc, Ford Motor Co, Target Corp etc, sued the Trump administration over this imposition. The suit was filed in the U.S. court of international trade. In filing, Tesla called the tariffs "arbitrary, capricious, and an abuse of discretion". Tesla wants the court to declare the duties unlawful and order a refund with interests.

China is the world's biggest auto market and the main growth driver for many car manufacturers. It is no surprise that the tariff imposition is considered adverse by a lot of people.

Benita Ezimora