Finance
US President Donald Trump boosted taxes on imported autos and parts to 25% and promised a “lenient” reciprocal tariff system when it goes into effect on April 2.
The additional tariffs will take effect on April 2, a day Trump refers to as “Liberation Day,” when the reciprocal tariff system kicks in.
“We’re going to charge countries for doing business in our country and taking our jobs, taking our wealth, taking a lot of things that they’ve been taking over the years,” Trump said in remarks from the Oval Office on Wednesday.
“What we’re going to be doing is (levy) a 25 per cent tariff on all cars that are not made in the United States. If they’re made in the United States, there is absolutely no tariff.”
The new tariff will apply to all cars and trucks assembled outside and shipped to the US, which accounts for half of all automobiles sold in the US.
“The 25 per cent tariff will be applied to imported passenger vehicles (sedans, SUVs, crossovers, minivans, cargo vans) and light trucks, as well as key automobile parts (engines, transmissions, powertrain parts, and electrical components), with processes to expand tariffs on additional parts if necessary,” the White House said in a fact-sheet.
A White House aide said the new tariffs are projected to generate $100 billion in revenue.
The US president also stated that he intends to impose tariffs on other commodities, such as pharmaceuticals, claiming that the majority of drugs sold in the US are manufactured in China or Ireland.
Regarding reciprocal tariffs, Trump stated that the US will not be reciprocal in the genuine sense and may not levy the same amounts as those paid by trading partner companies on American goods; however, no country will be exempt.
“We’re going to make it to all countries, and we’re going to make it very lenient,” he said. “I think people are going to be very surprised. It’ll be, in many cases, less than the tariff that they’ve been charging us for decades. So I think people are going to be very, very surprised.”
He added: “We’re going to be — we’re going to be very fair, going to be very nice, actually,” he said, adding, “We have not been treated nicely by other countries, but we’re going to be nice.”
Source: IANS
