Trump imposes 25% Tariff on imported vehicles to boost US Auto Industry
President Trump has announced a 25% tariff on all imported vehicles, aiming to boost domestic manufacturing. The tariffs, effective April 2, will impact nearly half of all vehicles sold in the US, including American brands assembled overseas. Industry experts warn of higher consumer prices and potential job market disruptions, while international trade tensions may escalate with key automotive nations.
Washington, DC [US], March 27 (ANI): In a major policy announcement from the Oval Office, President Donald Trump has announced a 25 percent tariff on all vehicles imported into the United States, calling it 'very exciting' for domestic manufacturing.
The tariffs, which are scheduled to be implemented on April 2, will affect almost half of all vehicles sold in the United States, including American brands manufactured abroad.
The comprehensive initiative seeks to encourage car makers to set up additional manufacturing plants within the United States.
Industry experts warn that the tariffs could have far-reaching consequences. Autos Drive America, a representative group for international car manufacturers operating in the US, expressed serious concerns about the potential fallout.
"The tariffs will make car production more expensive," the group stated, "potentially leading to higher prices for consumers, reduced consumer choices, and potential job market disruptions."
The announcement threatens to escalate trade tensions with key automotive manufacturing nations, including European countries, Japan, and South Korea. These nations export substantial numbers of vehicles to the United States and may view the tariffs as a direct challenge to their automotive industries.
Economists predict the tariffs could increase vehicle prices by thousands of dollars, adding further strain to consumers already grappling with persistent inflation. The move represents a dramatic intervention in the automotive market, potentially reshaping global car manufacturing strategies.
President Trump remained bullish about the policy, stating, "Anybody who has plants in the United States, it's going to be good for."
As the automotive industry and global markets absorb this significant policy change, other manufacturers, including those in India, are bracing for bigger changes.
Earlier, US President Donald Trump targeted India's auto import tariffs in a speech to Congress, stating, "India charges us auto tariffs higher than 100%," and vowed that a reciprocal tax would take effect on April 2. He said that the US has been ripped off for decades by nearly every country on earth and vowed not to "let that happen any longer." (ANI)