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Trump Proposes 25 Percent Automobile Tariffs – Foreign Policy

The Owner Press by The Owner Press
April 2, 2025
in Business News
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U.S. President Donald Trump announced 25 % tariffs on imported cars on Wednesday, to start on April 3. Whereas the White Home expects to boost $100 billion in income yearly by selling home automobile manufacturing, economists concern that the newest commerce battle escalation will pressure global supply chains and hike inflation.

If Trump’s taxes are totally handed onto shoppers and never swallowed by carmakers, then the common worth for imported automobiles might skyrocket by $12,500. Nonetheless, a partial exemption might be given to automobiles and automobile components that adjust to the U.S.-Mexico-Canada Settlement’s guidelines of origin—however just for what’s produced in the USA.

U.S. President Donald Trump announced 25 % tariffs on imported cars on Wednesday, to start on April 3. Whereas the White Home expects to boost $100 billion in income yearly by selling home automobile manufacturing, economists concern that the newest commerce battle escalation will pressure global supply chains and hike inflation.

If Trump’s taxes are totally handed onto shoppers and never swallowed by carmakers, then the common worth for imported automobiles might skyrocket by $12,500. Nonetheless, a partial exemption might be given to automobiles and automobile components that adjust to the U.S.-Mexico-Canada Settlement’s guidelines of origin—however just for what’s produced in the USA.

Auto tariffs are simply the newest in a slew of White Home duties geared toward just about all of Washington’s commerce companions. Already, the Trump administration has imposed:

That isn’t together with the sweeping “reciprocal” tariffs that the USA will impose on April 2, the day earlier than auto levies go into impact; impending 25 % tariffs on all items from international locations that import oil from Venezuela, regardless that the USA is a type of international locations; a threatened 200 % tariff on alcoholic beverages from the European Union; and anticipated duties on pc chips, prescribed drugs, lumber, and copper.

Learn extra in at the moment’s World Temporary: Trump’s Proposed Auto Tariffs Plunge Wall Street, Foreign Markets Into Turmoil.

This submit is a part of FP’s ongoing protection of the Trump administration. Observe alongside here.



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