Service Tech Tips

New Tariffs On Automotive Parts To Have A Devastating Effect On Australia

If you want to protect the front of the vehicle against damages, your best option is bull bar on the Gold Coast that is made from rigid structure that is usually metal. In the unique road system of Australia where there are large expanses of remote territories, stray livestock and kangaroos pose a serious problem for drivers. The animals are large enough to cause damage to the vehicle if there is no bull bar installed.

Meanwhile, the devastating 25% tariff on imported automotive parts that the Trump administration plans to impose can be very devastating for auto parts manufacturers in Australia. Foreign Minister Julie Bishop is into high-level meetings with her US counterpart Secretary of State, Mike Pompeo to seek for Australia’s exemption.

Early in the year, the Australian government was able to secure an exemption from the US tariffs on imported steel and aluminium. However, the government fears that Australia may not be spared from the new tariffs that the Trump administration will impose on imported cars and auto parts. The new tariffs could result into an unprecedented global trade war.

Even if Australia no longer produces cars, the automotive parts that Australia exports every year to the United States is valued at $330 million. The automotive parts industry employs an estimated number of 21,000 workers. The local auto parts industry gave a warning that jobs will be lost because manufacturing plants will close if the tariffs will be imposed.

According to Ms. Bishop, Australia is concerned about any measure that will negatively impact on the manufacturers of automotive components. Ms. Bishop hopes that trade restrictions will not apply to Australia. Early this month, Australian Automotive Aftermarket Association (AAAA) that represents about 2,250 companies warned that local businesses will be significantly affected by the proposed tariffs because the United States is the biggest export market.

These days, a lot of testing and design goes into the bull bar on the Gold Coast to ensure that it is sturdy and complies with Australian regulations. The bull bar is not just an accessory that will make the vehicle look tough; it is necessary if you travel to the country where kangaroos are a constant hazard.