.webp)
In a bold move aimed at revitalizing the American automobile industry, former U.S. President Donald Trump has announced a 25% tariff on all imported cars.
The policy, he claims, is designed to strengthen domestic car manufacturing and reduce reliance on foreign-made vehicles.
Trump made the announcement on Wednesday, stating that the tariffs would take effect on April 2, with collections commencing the following day.
He argued that the policy would drive “tremendous growth” in the U.S. auto industry, creating jobs and encouraging investment.
However, analysts warn that the tariffs could disrupt car production, drive up prices, and strain trade relations with key allies. Mexico, South Korea, Japan, Canada, and Germany are among the largest exporters of vehicles to the U.S.
Following the announcement, shares of General Motors fell by approximately 3 per cent, reflecting investor concerns over the policy’s potential impact.
When asked at a press conference whether he might reconsider the decision, Trump was firm, stating that “this is permanent.
“But if you build your car in the United States, there is no tariff,” he added.
The U.S. auto industry has long been a key sector in the nation’s economy, with major manufacturers like General Motors, Ford, and Stellantis (formerly Fiat Chrysler) playing a significant role in employment and production.
However, globalisation has led to an increase in foreign car imports, with many automakers establishing factories in other countries to take advantage of lower production costs and trade agreements.
Under the Trump administration, trade policy was a major focus, with an emphasis on protecting American industries through tariffs and renegotiating trade deals.
Trump had previously imposed tariffs on steel and aluminium imports and engaged in a trade war with China, Mexico, and Canada.
The newly announced 25 per cent tariff on imported cars aligns with Trump’s broader “America First” economic agenda, aiming to reduce reliance on foreign manufacturing and boost domestic production.
However, the new measure is likely to deepen the already existing trade war between the US and its closest allies.
Post A Comment: