I was in Washington last month. Manufacturers are constantly trying to find a way to get the administration to see how damaging this policy is. To give you an example of the severity of it, it is now more cost-effective to build a car in Japan or Germany, export it into the U.S. market and pay the 25% tariff. You will still have more margin in that vehicle than if you build it in the States, because not only do you have to comply with the costs of bringing in a vehicle from outside, but you have tariffs on aluminum, you have tariffs on steel and you have tariffs throughout the supply chain.
They are making the case to the administration. I cited that $188-billion U.S. tariff cost. That is on U.S. auto manufacturers. This is not sustainable. It is not making American manufacturers more competitive globally.
Unfortunately, there seems to be significant consistency in the White House on this tariff policy. They are making progress. The posted 25% rate is not the effective tariff that companies are paying, but we clearly still have work to do.