Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-06-05
TARIFF IS PROBLEM |
in AUTO INDUSTRY
New Canadian Duties May
Prove Handicap to Ameri-
can Manufacturers.
BY DAVID J. wILKIE.

DETROIT, June 5.-Just about the
time the automobile industry believes
It has the worst Of its problems under
control O. new one, sometimes OF minor
and not infrequently Of major impor-
lance, crops UP. The latest to give pause
to the plans Of the industry's executives
Is the decision Of the Canadian gov.
eminent to increase the duty on all
American made motor cars selling for
Although large number of American
motor car manufacturers already have
plants in Canada and others undoubt-
edly soon will follow, they are likely to
feel the effects Of the tariff increases In
some measure because Of the duty on
parts, some Of which must be imported
even by the Canadian producers:
Local motor car makers generally have
withheld comment a. to the effect OF
the newest Canadian tafin increases e.
A few weeks ago when Premier Bennett
announced that the reduction allowed
from the list prices Of cars entered Tor
duty would be discontinued, there was
some talk of prohibitive tariff walls and
the like. Soon, however, several OF the
companies without production facilities
within the Dominion announced plans
for opening Canadian factories, with
the result that relatively few American
now are operating VA a PuAS-
ly export basis with Canada.
Watch Trade Relations.
In some quarters there was dis
position to interpret the latest tarin
boost a. a move by the Canadian gov
eminent to force the remaining Amer
lean manufacturers to arrange for
naming outside are known to be watch
ing Canada's trade relations with other
units Of the British Empire with even
keener interest than the manufacturers
who have Canadian plants.
Not a small part of the attraction
Canadian production held for American
automobile builders was the prefer
entail tariff agreement with other
countries under the British flag. Just
before Premier Bennett last Monday
announced the new tariff schedule his
government was notified by the pre-
n1ier of New Zealand that the latter
country had cut Canada OF the list
of countries to which 1t extended q
preferential tariff
The action was in retaliation for the
cAncelling by Canada Of a treaty under
which New Zealand butter entered the
Dominion with a duty Of but / cent a
pound
The importance Of the foreign mar
ket to the American automobile manu-
facturers is being constantly emphasized
by leading authorities Of the industry.
Figures compiled by the National Auto
mobile Chamber of Commerce show
that 80 per cent Of last years total out
put was disposed Of In the replace nent
market Many Of these authorities be-
lieve that with the steady increase Of
total registration in the United States,
the industry ultimately will have to look
to the intensive development Of sales
abroad for expansion,
In this connection it has been pointed
out that of a total world registration
Of 35.603,0 motor vehicles. 26523, 779
are owned in the United States.
Manufacturing activity continues on
the conservative basis suggested by the
uncertainty of the immediate future
months. While favorable output figures
for May have been announced by sew
expected to show falling of in keeping
with the usual seasonal decline.
In the merchandising division Of the
industry distributor of some types re-
port indications of continued steady
demand. Others, however. are afitiei-
pating a tapering on and are placing
their factory orders accordingly.
New Models.
Another manufacturer Is understood
to be planning to bring out new model
within the next 10 days or two weeks
1t probably will supplement his present
line rather than replace a current
model In explanation Of the appear
ance of not a few new models during
the last few weeks despite the under
taking to hold back all new types until
November and December it has been
pointed out that most of the new cars
brought out this Spring already were
on blue prints when the no Midsummer
models policy was announced.
In any event the bulk Of the new
model introductions will be made In the
final, weeks Of the year. with few
holding back possibly until the show
soA con Tanuarv