U.S. to Impose Permanent 25 Percent Tariff on Foreign Vehicles
The United States is imposing a 25 percent tariff on vehicles and automotive parts imported into America, President Donald Trump announced on Wednesday.
“We’ll effectively be charging a 25 percent tariff, but if you build your car in the United States, there is no tariff,” the president said, explaining that the goal is to boost domestic manufacturing.
The tariff will be added on top of a 2.5 percent tariff already in place, meaning there will be a total 27.5 percent tax on all auto imports. “This will be permanent,” President Trump said.
The tariff will go into effect on April 2, and duties will be collected starting April 3.
More? Later in the day, President Trump warned he would place even higher tariffs on Europe and Canada if they worked together “to do economic harm” to America.
Reaction: “I deeply regret the U.S.’s decision to impose tariffs on European automotive exports,” European Commissioner President Ursula von der Leyen said in response to Trump’s announcement.
As I have said before, tariffs are taxes—bad for businesses, worse for consumers equally in the U.S. and the European Union. As a major trading power and a strong community of 27 member states, we will jointly protect our workers, businesses and consumers across our European Union.
—Ursula von der Leyen
German Economy Minister Robert Habeck has called for a “firm response” to the tariffs. “It needs to be clear that [the EU] will not take this lying down,” he said in a statement.
Canadian Prime Minister Mark Carney also reacted angrily, saying it was a “direct attack” on Canadian workers and his team is looking into imposing “countermeasures.” The automobile industry is Canada’s second-largest export.
Trade war: A worldwide trade war has been brewing for years, and Trump’s increasing imposition of tariffs is causing it to boil over. Through these actions President Trump is turning once friendly countries into economic enemies.
To understand where this is leading, read “Trade Wars Are Here.”
