Trump imposes 25% rates on cars manufactured outside the United States

The president of, on Wednesday (26) has expanded his tariff list with the imposition of customs tariffs of 25% on “all cars that are not manufactured in the United States”, a measure that also reaches the spare parts. “It comes into force on April 2; we started charging on April 3,” said the Republican tycoon at the White House Oval Hall. “We will charge countries for doing business in our country and bringing our jobs, bringing our wealth […] What we will implement is a 25% rate on all cars that are not manufactured in the United States. If they are manufactured in the United States, there will be no tariff, ”he said.“ This adds to existing tariffs on these goods, ”explained one of his advisers.

The previously applied rate was 2.5%. This means that imported cars will be taxed at 27.5% of their value. In the case of Chinese electric cars, which have been taxed at 100% since August 2024, tariffs will rise to 125%. “Half of the vehicles sold in the United States are manufactured abroad. And those that are mounted here, half are manufactured with foreign pieces,” said Donald Trump’s commercial advisor Peter Navarro at a press conference. There will be one exception: vehicles set up in Mexico and Canada will be subject to a 25% tax on the part of spare parts that do not proceed from the United States.

This is a new scam for the automotive sector and for countries such as Canada and Mexico, US partners in the North America Free-Commerce Treaty (T-MEC). Mexico exports 80% of the vehicles it manufactures to the United States, according to data from the National Institute of Statistics and Geography. American automakers have abroad factories that supply the domestic market, especially in Canada and Mexico. According to the Ford website, about 20% of vehicles sold in the United States are imported. And General Motors imports approximately 750,000 vehicles per year from Canada and Mexico.

*With information from AFP
Posted by Sarah Paula