Donald Trump Could Announce Auto Tariffs Within The Next 24 Hours: Report
US President Trump may announce auto tariffs as early as Wednesday to boost the domestic auto industry, potentially impacting major car brands and supply chains.
US President Donald Trump is preparing to announce auto tariffs as early as Wednesday, according to a report by Bloomberg. The news agency citing unnamed sources however highlighted that Donald Trump’s plans “could still shift".
The US President earlier this week while addressing reporters said that he would announce details of the auto tariffs in the coming days and did hint that they could be unveiled before his April 2 rollout of broader reciprocal tariffs. He said these steps would boost the domestic auto industry and push companies to shift more production to the US.
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It is unclear how high the auto tariffs will be and what will be their scope and if there will be exemptions. It remains unclear whether the tariffs will be imposed immediately or in phases and whether they will apply only to finished vehicles or also to auto parts.
The US President’s auto tariffs would intensify his tariff wars and could hit major car brands from Japan, Germany and South Korea.
The move could disrupt North American automakers, who rely on supply chains across the US, Mexico and Canada. The tariffs could also affect a large share of US car and truck imports, which were worth over $240 billion last year.
The auto tariffs could make cars more expensive for American buyers already worried about inflation and a possible economic slowdown. Foreign-made cars would see price hikes, and even US-made vehicles could become costlier if parts and supplies face levies or if supply chains from lower-cost countries are disrupted.
Analysts speaking to Bloomberg estimate that the new tariffs could increase car prices by thousands of dollars, with one study accessed by the news agency showing that tariffs on Canada, Mexico and China could raise the cost of producing a crossover vehicle by $4,000 and a US-made electric vehicle by $12,000.
Trump is banking on tariffs to reshape US industry and insists his strategy is delivering results. Earlier this month, he met Hyundai Motor Co. executives at the White House and praised the South Korean automaker’s $21 billion US expansion plan, calling it “clear proof that tariffs work very strongly."
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