President Donald Trump announced his latest round of tariffs on Wednesday, telling reporters at a press conference that the US would levy duties of 25 percent on all imports of fully-assembled vehicles.
The carve out for imports of auto parts is meant to be a lifeline for the US auto industry. Wednesday’s announcement of duties on assembled vehicles was originally set to be part of the president’s planned April 2 “liberation day” tariff announcement, accompanied by similar tariffs on parts.
“What we’re gonna be doing is a 25 percent tariffs on all cars that are not made in the United States,” declared the president in the Oval Office. “This will continue to spur growth.”
“I think our automobile business will flourish like it’s never flourished before,”
One reporter asked Trump during the event whether there were any conditions that would cause him to roll the newest tariffs back, or whether they’d remain in place through the end of his term in 2029.
“Oh this is permanent, yeah. Hundred percent,” Trump responded.
The press briefing at which the tariffs were announced was originally scheduled for 4pm eastern; it was delayed, however, and took place well after the market closed. Auto stocks were sliding throughout the day ahead of his remarks.
Even some US automakers rely at least partially on plants that produce vehicles overseas; in the short term, those companies will feel a sharp financial squeeze from the president’s announcement. GM, Ford, and Stellantis all manufacture some vehicles outside of the US, including in Canada and Mexico. Roughly half of all cars sold in the US are imported.
The president’s free-wheeling tariff announcements have set off alarm bells in financial centers and capitals around the world, as even close US allies feel the sting of the president’s accusatory language and vows to spur economic growth with protectionist trade policies. Auto tariffs were always expected to be a central part of his trade plan, given his desire to appeal to voters in the Rust Belt with promises to return manufacturing plants to the states.
He previously targeted Mexico and Canada in particular with tariffs on some auto imports and other goods,
This is a breaking news report. More to follow…
Source: independent.co.uk