President Trump will announce tariffs on automobile imports at the White House Oval Office in Washington on Wednesday. Since returning to presidency in January, Trump has already imposed tariffs on imports from major trade partners in Canada, Mexico and China, and has placed a 25% obligation on steel and aluminum imports. The move is set to foster tensions with trading partners next week ahead of the more promised taxation.
Mandel Ngan/AFP via Getty Images
Hide captions
Toggle caption
Mandel Ngan/AFP via Getty Images
President Trump signed an executive order on Wednesday, imposing a 25% tariff on imported cars.
“I think our automotive business will thrive like it never thrives before,” Trump said in a statement from the oval office.
The latest policy is another example of the president’s tariff-centric second-term economic agenda. So far, Trump has imposed tariffs on Chinese goods, steel, aluminum, and some goods from Canada and Mexico. Trump also launched a wave of what he calls “mutual tariffs” on April 2nd, calling it “liberation day.” Taxes on imports are causing a plunge in stock markets and consumer trust, leaving businesses and consumers uncertain about what they want to invest in.
The Trump administration has given multiple rationales for these tariffs, but they emphasize that it will boost manufacturing as its main goal.
US tariffs are paid to the government by US companies importing goods. the study of Customs The imposed in Trump’s first term shows that they are being paid overwhelmingly by American businesses and consumers. White House officials say that if foreign companies lower prices to compensate for tariffs, they essentially eat costs. However, when asked by the NPR, officials did not provide any data to support this.
Trump’s tariff policies have been mixed throughout this presidency. In addition to the already imposed tariffs, he further threatens tariffs on various goods around the world, sometimes postponing them or withdrawing them.
Earlier this week, Trump came to mind what was called a 25% “secondary tariff” on goods from countries that buy oil or gas from Venezuela.
The president also said he would impose “mutual tariffs,” but he said it was equivalent to the tariffs that other countries levied on US goods. However, the White House has given little specific details about what those mutual tariffs will look like. According to Trump, the latest automobile tariffs will come into effect on April 3rd.
