LAFAYETTE — This week, Subaru of Indiana Automotive officials went to Washington, D.C. to protest the potential United States tariffs on imported cars and car parts.
"There is no rational basis for concluding that the importation of autos or auto parts is a threat to national security," said Tom Easterday, senior executive vice president of SIA, in a statement.
Easterday noted SIA imports some parts such as transmissions from its parent company.
"The imposition of a new tariff on the parts imported from our parent company would have a very negative cost impact for SIA," he said in the statement.
Many Greater Lafayette businesses are still reacting to the tariffs with caution.
Oerlikon Fairfield, which manufactures gears and drive products, sees the tariffs as somewhat neutral. The company has to pay more for materials from China, but it is getting more demands from companies looking for U.S.-based suppliers, said Scott Walker. CEO and president of Greater Lafayette Commerce, who has been talking with the company.
But as conflicts over tariffs escalate, more businesses are beginning to speak against the tariffs.
"We've seen expansion and hiring of workers and investments of new equipment," said Lafayette Mayor Tony Roswarski, who said he has often spoken with businesses on the tariffs. "If something is to happen with the tariffs that affect the ability to get raw materials... and efficient supply chain, that can quickly undermine the gains they have had."
Experts: We are seeing impacts of the tariffs
Anson Soderberry, a Purdue economics professor, said the country is entering an uncharted territory with the tariffs.
"(But) it all seems like a perfect storm to hurt Indiana," he said.