(CLO) US President Donald Trump announced on Wednesday (March 26) a plan to impose tariffs of up to 25% on imported cars. Automotive industry experts predict this move will drive up prices and hinder production.
"What we're going to do is impose a 25% tariff on all vehicles not made in the United States," Trump said at an event in the Oval Office.
President Trump said the new import tariffs would take effect on April 2, the same day he plans to announce "corresponding tariffs" targeting countries responsible for the majority of the U.S. trade deficit.
President Donald Trump signed an executive order imposing a 25% tariff on automobiles manufactured outside the United States. Photo: White House
The new automobile tariffs will begin to take effect on April 3rd. In addition to cars, these tariffs will also affect light trucks. This statement cites Section 232 of the Trade Act of 1962.
However, this directive exempts auto parts that comply with the U.S.-Mexico-Canada trade agreement. "Auto parts that comply with the USMCA will remain exempt from tariffs until the Secretary of Commerce... establishes a process for applying tariffs to non-U.S. goods," White House Deputy Press Secretary Harrison Fields told X.
The United States imported $474 billion worth of automotive products in 2024, including $220 billion worth of passenger vehicles. Mexico, Japan, South Korea, Canada, and Germany, all close allies of the U.S., were the largest suppliers.
The US president has also imposed high tariffs on steel and aluminum imports and has repeatedly stated plans to announce a global "corresponding tariff" on April 2nd.
According to the Center for Automotive Research, the new vehicle tariffs are expected to increase the cost of purchasing cars for consumers by thousands of dollars, impacting new car sales and leading to job losses, as the U.S. automotive industry relies heavily on imported parts.
This announcement was quickly criticized by the European Union and Canada. Canadian Prime Minister Mark Carney called it a "direct attack" on Canadian workers. EU leader Ursula von der Leyen said: "I deeply regret the US decision to impose tariffs on European car exports."
Huy Hoang (according to WH, Newsweek, CNN)
Source: https://www.congluan.vn/tong-thong-my-cong-bo-ap-thue-25-doi-voi-o-to-nhap-khau-post340219.html
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