US President Donald Trump announced on Wednesday the imposition of 25% tariffs on car imports and parts manufactured abroad. The goal, he says, is to foster domestic production.
Trump stated in the past that car imports would be a remarkable policy of their presidency, betting that foreign manufacturers will move production to the United States to maintain competitive access to the market.
But the car logistics chain is global and US and foreign car manufacturers with factories in the country still depend on parts made in Canada, Mexico and other nations, so car prices can increase and sales may decrease until new factories are operational, AP agency says.
Automobile tariffs are part of a wide reformulation of global trade by Trump, which plans to impose on April 2, which calls “reciprocal rates,” which corresponds to those charged by other nations to US exporters.
Trump has already imposed 20% rates on all imports in China and 25% on Mexico and Canada.
Parts of the fees over Mexico and Canada were suspended, including cars, after the automobile manufacturers were opposite and Trump has granted a 30 -day postponement, which should exhale in April.
The US president also imposed 25% rates on all steel and aluminum imports, removing the exemptions from their previous 2018 taxes on metals. It also plans to apply rates on ‘chips’ of computers, medicines, wood and copper.
These tariffs are in danger of triggering a broader global trade war, with a climb of retaliation, potentially damaging economic growth and increasing prices for families and companies, as some of the tax costs are transferred by importers.
When the European Union retaliated with plans to apply a 50% tariff on the spiritual beverages, Trump replied planning a 200% tax on alcoholic beverages from the EU.
Trump also intends to apply a 25% rate to countries that import oil from Venezuela, although the United States imports oil from this country.
Trump’s advisers say that tariffs about Canada and Mexico aim to prevent illegal immigration and drug smuggling.
But management also wants to use tariff revenues to reduce the budget deficit.
