US President Donald Trump has unveiled a 25% tariff on all imported automobiles and parts, effective April 2.
The new tariff will target vehicles and key components that other countries assemble outside the United States and ship to the US, a move expected to raise $100 billion in revenue.
US President Trump referred to April 2 as ‘Liberation Day’, marking the day when the new tariff system, along with reciprocal tariffs, will go into effect.
Imposition Of 25% Tariff
The new tariff will apply to various automobiles, including sedans, SUVs, crossovers, minivans, cargo vans, and light trucks.
It will also target critical automobile parts such as engines, transmissions, powertrain components, and electrical systems.
The White House has indicated that the administration may expand tariffs to additional parts if needed.
US President Trump emphasized that the new tariff would not apply to vehicles made in the United States, saying, “If they’re made in the United States, there is absolutely no tariff.”
US President Trump Criticizes Foreign Trade Practices
During his remarks from the Oval Office, US President Trump outlined his stance on foreign trade, stating, “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.”
He further emphasized that the new tariffs aim to rebalance trade and bring back jobs to the US.
President Trump’s Plan For Reciprocal Tariffs
While US President Trump discussed the introduction of reciprocal tariffs, he hinted that they might not mirror the exact tariffs imposed by other countries on US goods.
“We’re going to make it to all countries, and we’re going to make it very lenient,” he said.
The president added that the tariffs might be less than those charged by other countries in the past, offering a ‘surprise’ to global trade partners.
Despite his assurances, US President Trump warned that he would not exempt any country from these measures, saying, “We have not been treated nicely by other countries, but we’re going to be nice.”
Other Tariff Plans and Revenue Projections
In addition to automobile tariffs, US President Trump indicated plans to target other imported goods, including pharmaceuticals.
He noted that many countries manufacture drugs sold in the US, particularly China and Ireland.
The White House estimates the new tariffs could bring in around $100 billion in additional revenue for the government.
US President Trump’s remarks underscore his continued push for a more protectionist approach to US trade policy, which aims to reduce the trade deficit and incentivize domestic manufacturing.
Also Read: White House Considers Tapping Gold Reserves To Acquire Bitcoin: A Strategic Shift In Digital Assets
To read more such news, download Bharat Express news apps
