Proposed tariff could impact SC automotive industries

GREENVILLE, S.C. (WSPA) – President Trump has proposed a 25% tariff on imported goods, and officials at the South Carolina Automotive Summit said they expect to see an affect on car manufacturing.

South Carolina is ranked among the best in the nation for car manufacturing.

“It shows the resilience of the state of South Carolina, our capabilities in manufacturing the workforce supplied to our businesses,” Business Operations Manager for the Honda Manufacturing Division, Ron Freed said.

Those leading the way said the proposed tariffs are causing a lot of uncertainty. 

Lenny LaRocca with KPMG said companies will have to learn how to adapt.

“Companies need to think through what is that return on the investment and the timing and long-term implications to their business,” LaRocca said.

LaRocca said certain components, such as steel and aluminum, could make a significant impact.

“You have actually saw over the years a lot of places close down and move to other countries,” LaRocca said.

A 25% proposed tariff could mean a smaller profit for automakers. LaRocca said it could lead to higher prices for consumers. 

“It could impact $1,000 a vehicle,” LaRocca said.

President Trump acknowledged prices could go up for Americans short term, but said long term he believes the tariffs will strengthen the U.S. economy.

The SC Automotive Summit is underway this week in downtown Greenville. It is made up of industry leaders who are envisioning a continued, successful path forward.

Chad Hensley, the Chief Quality Engineer at Honda, in the Low Country, said he was one of the first 20 people hired at the plant, that now employs more than 1,000.

He said as more companies buy into the state, success keeps spreading.

“Rising tide lifts all boats,” Hensley said.

According to the South Carolina Department of Commerce, South Carolina’s automotive industry has had a $27 billion economic impact.

“BMW makes 1,400 BMW’s every day and if you do the math on that, that is one car every single second,” President and CEO of the SC Manufactures Alliance, Sara Hazzard said.

The Palmetto State is currently number one in tire manufacturing.

Leaders said they will have to wait and see how a proposed tariff could shake things up. They said they will continue working collaboratively to keep South Carolina at the top of the automotive industry, with uncertainty for what’s to come. 

The proposed tariffs by President Trump are expected to take effect on April 2.