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Donald Trump to unveil new tariffs on automobiles in April
This move marks the latest chapter in an escalating ‘trade war’ as Trump follows through on his campaign promises to impose aggressive tariffs.
Latest in the series of his sweeping import levies, US President Donald Trump on Friday announced plans to introduce new tariffs on automobiles as part of his bid to reshape global trade dynamics and encourage companies to shift production to the United States.
“We are going to do that on, around April 2,” Donald Trump said on Friday while signing executive actions on energy policy in the Oval Office of the White House.
This move marks the latest chapter in an escalating ‘trade war’ as Donald Trump follows through on his campaign promises to impose aggressive tariffs on both US allies and rivals.
Trump's reciprocal tariff plan
The announcement comes just one day after Donald Trump revealed his most ambitious measure in connection with the same, reciprocal tariffs. Donald Trump on Thursday directed his administration to explore reciprocal tariffs on Utrading partners, aiming to counter what he perceives as a trade system unfair to the US.
"No more or no less… They charge us a tax or tariff, and we charge the exact same tax or tariff… no body knows what that number is… you go to an individual country and see what they are charging us," said Donald Trump while announcing his reciprocal tariff plan.
These reciprocal tariffs could come as soon as April and will target countries that impose import taxes on US goods.
The new levies differ from the sector-specific tariffs Donald Trump has threatened on automobiles, as well as on industries like energy, semiconductors, and pharmaceuticals, according to a Bloomberg report.
Additionally, earlier this week, Donald Trump disclosed plans to impose 25 per cent duties on steel and aluminum imports.
The proposed auto tariffs could affect some of the largest car manufacturers in Japan, Germany, and South Korea.
Imports made up nearly half of the US auto market in the previous year, with significant shares of vehicles imported from these countries. For example, about 80 per cent of Volkswagen AG’s US sales are imported, while 65 per cent of Hyundai-Kia’s sales are from imports, according to market research firm Global Data.
