Trump announces 25 per cent tariff on imported cars
US President Donald Trump raised tariffs on imported automobiles and parts to 25 per cent, the new tariff will go into effect on April 2
- WASHINGTON — US President Donald Trump raised tariffs on imported automobiles
and parts to 25 per cent and indicated that the reciprocal tariff system that
goes into effect on April 2 will be “lenient”.
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- The new tariff will go into effect on April 2, a day Trump
likes to call the “Liberation Day”, when the reciprocal tariff system kicks in.
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- “We’re going to charge countries for doing business in our
country and taking our jobs, taking our wealth, taking a lot of things that
they've been taking over the years,” Trump said in remarks from the Oval Office
on Wednesday.
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- “What we're going to be doing is (levy) a 25 per cent tariff
on all cars that are not made in the United States. If they're made in the
United States, there is absolutely no tariff.”
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- The new tariff will apply to all cars and trucks assembled
outside and shipped to the US, which accounts for half of all automobiles sold
in the US.
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- “The 25 per cent tariff will be applied to imported
passenger vehicles (sedans, SUVs, crossovers, minivans, cargo vans) and light
trucks, as well as key automobile parts (engines, transmissions, powertrain
parts, and electrical components), with processes to expand tariffs on
additional parts if necessary,” the White House said in a fact-sheet.
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- A White House aide said the new tariffs are expected to
bring in $100 billion in revenues.
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- The US president also said he plans to announce tariffs on
other goods as well, such as pharmaceuticals, saying most drugs available in
America were made abroad in either China or Ireland.
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- Regarding the reciprocal tariffs, Trump indicated that the
US will not be reciprocal in the true sense and may not be at the same levels
as those levied by trading partner companies on American goods; although no
country will be spared.
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- “We're going to make it to all countries, and we're going to
make it very lenient,” he said. “I think people are going to be very surprised.
It'll be, in many cases, less than the tariff that they've been charging us for
decades. So I think people are going to be very, very surprised.”
