U.S. President Donald Trump has unveiled a dramatic new trade policy that could shake up the auto industry. Speaking from the White House Oval Office, he announced a 25-percent tariff on all cars not manufactured in the United States, rising from the current 2.5-percent base rate.
"What we're going to be doing is a 25-percent tariff for all cars that are not made in the United States," Trump stated, confirming that the measures will take effect on April 2, with tariffs starting to be collected on April 3.
The administration argues that this move aims to encourage automakers to boost domestic production, create additional revenue for the government, and assist in reducing the national debt. However, leading economists warn that the increased tariffs could lead to higher prices for consumers, potentially impacting the everyday costs of owning a vehicle.
This bold policy highlights the ongoing debate between protectionist strategies and the benefits of open global markets. As industry stakeholders, tech enthusiasts, and global leaders watch closely, the long-term impact of these tariffs on the U.S. auto sector and international trade relations remains a pressing topic of discussion.
Reference(s):
cgtn.com
