What Happens When Auto Tariffs Kick In April 2?

U.S. President Donald Trump said he would impose reciprocal tariffs as soon as the evening of Feb. 12 on every country that charges duties on U.S. imports, in a move that ratchets up fears of a widening global trade war and threatens to accelerate U.S. inflation. He has stood behind his word in leveling out the playing field. In addition, President Trump announced plans to impose new tariffs on automobiles, set to take effect around April 2. The mainstream media are screaming, but is the real deal.

President Donald Trump said he would unveil new tariffs on automobiles, adding to a wave of import levies as he seeks to remake global trade relationships and pressure companies to move production to the U.S.

Trump promised he was going to raise tariffs to 25% on March 12 on all imported steel and aluminum. Then 25% on all imported cars around April 2. While he’s been threatening to put higher tariffs on cars from Canada and Mexico, he’s now going to be targeting imports from Europe, Japan, and South Korea as well. Volkswagen, Hyundai-Kia, Mercedes, Nissan, and BMW have the highest percentage of imported vehicles, so they’d be impacted the most, but it would hit all automakers hard. Imports account for nearly half of all the vehicles sold in the U.S., with most of them coming from Mexico, South Korea, and Japan.

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