President Donald Trump signed an order to implement a 25% tariff on auto imports, expanding a trade war designed to bring more manufacturing jobs to the US and setting the stage for an even broader push on levies next week.
“What we’re going to be doing is a 25% tariff on all cars that are not made in the United States,” Trump said at the White House on Wednesday. “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.”
The president said the tariffs would go into effect on April 2 and that the US would start to collect them a day later. The tariffs will be on top of levies already in place, White House Staff Secretary Will Scharf said, and the administration projects that the tariffs would result in $100 billion of new annual revenue to the US.
Trump cast the tariffs as “permanent” and was not interested in negotiating any exceptions. Shares of General Motors Co., Ford Motor Co. and Stellantis NV dropped in after-hours trading as Trump discussed the tariffs, led by a decline of 4.1% by GM as of 5:36 p.m. in New York.
Wednesday’s move comes ahead of an even broader announcement of so-called reciprocal tariffs expected April 2 — a bid to drive down other countries’ barriers and shrink US trade deficits. Those tariffs will see the US apply rates on a country-by-country basis to counter barriers levied on American imports. Trump, though, has signaled some trading partners may receive possible exemptions or reductions in duties. Other industry-specific tariffs are also in the works, with Trump threatening levies on lumber, semiconductors and pharmaceutical drugs.
“That’s the real Liberation Day of America, and that’s going to be in April 2, and I look forward to it,” Trump said Wednesday.
https://finance.yahoo.com/news/trump-announce-auto-tariffs-afternoon-171937304.html
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