President Trump realizes his threat: In the future, the United States will raise 25 percent additional tariffs to all cars that are not manufactured in the United States. Further tariffs could follow – also on individual parts of cars.
“This is the beginning of the day of liberation in America,” explains Donald Trump. For far too long, other countries would have abused and robbed the United States than its piggy bank, but that is now the end, said the US President.
In the future, an additional inch of 25 percent should apply to all import cars – regardless of where they are produced in the world. “They come into force on April 2, from the 3rd,” says Trump. And he assures that these tariffs are no longer negotiable, but “permanent”.
Trump wants to strengthen local auto industry
Due to the premiums, the United States would not only generate additional income in billions of bills – enough money to reduce taxes and remove the debt mountain, Trump promises. The domestic auto industry will also be high again, because in order to avoid the tariffs, the car manufacturers would produce completely in the USA in the future, Trump believes.
“This is very exciting. It will lead to the construction of new cars. Numbers that we never saw. Even with the jobs,” said Trump. But he also admits: “It will take a while.”
Customs could soon also apply to individual parts
Economic experts warn that Trump’s calculation could not work at all and that car prices for US consumers will increase massively. Even with American brands. After a grace period of up to one month, the tariffs should also apply to the import of individual parts.
US cars also mainly consist of components that are built in Mexico or Canada. In the Autostadt Detroit, retailers therefore fear that consumers will postpone the next car purchase.
“What worries us is that cars already cost an average of $ 49,000 – almost more than ever,” said Glenn Stevens. He is the boss of Michauto, the Association of Auto Industry in Michigan. “Even small price increases can affect demand. And that also has an impact on the supply chains, the production costs and may even cost jobs.”
But even consumers who do not buy a new car could suffer from it, explains market analyst Jessica Caldwell in the broadcaster CBS: “Anyone who has their car repaired will experience higher costs, probably also with the insurance company. If you build an accident, then there are many individual parts. And they will all be affected directly from the tariffs.”
Economic researcher Warning of recession
The consumer mood has recently dropped dramatically in the USA. And some economic researchers warn of an impending recession. Trump himself promises to compensate for rising car prices through tax depreciation. But they still don’t exist. And if so, then they should only apply to cars that are manufactured in the USA.
One thing is clear: the auto tariffs are another escalation and are also understood by America’s trading partners. Canada’s new Prime Minister Mark Carney, for example, speaks of a direct attack on his country – and threatens to continue selling. EU Commission President Ursula von der Leyen regrets Trump’s decision and wants to continue to work on a negotiation solution.
Trump has already prepared the next part of “Liberation Day”, from the “Liberation Day”. On April 2, he wants to impose further retaliation tariffs. How much and what, he has not yet revealed.
