Us Donald Trump Tariff on Vehicles: US President Donald Trump has announced on Wednesday (March 26) that 25 percent tariffs will be imposed on all vehicles that are not manufactured in the United States. The White House confirmed the announcement and said that the step will be applicable from April 2.
During his announcement at the White House, Trump said, “We are going to impose 25 percent tariffs on all cars which are not made in the United States.” This new tariff policy will not only apply to cars made abroad, but it will also affect light weight trucks.
New tariff with current tariff
This tariff policy will be implemented in addition to the current tariff. Currently, according to the US International Trade Commission (USITC), the tariff rate of 2.5 per cent was applicable on passenger vehicles coming from most countries. At the same time, a tariff of 25 percent was applicable from the 1960s in the name of “chicken tax” on trucks.
Impact on American vehicle industry
Soon after this announcement, the shares of American vehicle manufacturers saw a decline. Ford Motors shares fell by 1.8 percent and General Motors’ shares declined by 1.9 per cent. This tariff policy is likely to impact on the US automobile industry as well as global wide manufacturers, which produce their vehicles in other countries and export them to the US market.
Other industries also monitor
In addition to the automobile industry, the Trump administration is also considering putting specific tariffs on pharmaceuticals, semiconductor and other areas. The move aims to provide protection from global competition to American industries and promote domestic production in the US market.
Potential impact on business relations
This tariff policy can also affect relations with the US business partners whose vehicle manufacturers hold a large share in the American market. In addition, this step may increase the prices of vehicles for American consumers, as high tariffs on vehicles imported by foreign manufacturers will make their production and expensive expensive.
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