Office Address
123/A, Miranda City Likaoli Prikano, Dope
Phone Number
+0989 7876 9865 9
+(090) 8765 86543 85
Email Address
info@example.com
example.mail@hum.com
123/A, Miranda City Likaoli Prikano, Dope
+0989 7876 9865 9
+(090) 8765 86543 85
info@example.com
example.mail@hum.com
The tariffs
will go into effect April 3 and apply both to finished cars and trucks that are
shipped into the United States and to imported parts that are assembled into
cars at American auto plants. Those tariffs will hit foreign brands as well as
American ones that build some of their vehicles in Canada or Mexico. Nearly
half of all vehicles sold in the United States are imported, as well as nearly
60 per cent of the parts in vehicles assembled in the United States. That means
the tariffs could push up car prices significantly.
Trump said the tariffs would encourage auto companies
and their suppliers to set up shop in the United States. “Anybody who has
plants in the United States, it’s going to be good for,” he said.
But the auto industry is global and has been built up
around trade agreements that allow factories in different countries to
specialize in certain parts or types of cars, with the expectation that they
would face little to no tariffs.
Mexico is the largest source of vehicle imports in the
United States, followed by Japan, South Korea, Canada and Germany.
Stock markets fell on news that the auto tariffs would
be imposed. Shares of major carmakers tumbled further in after-hours trading,
after the White House clarified that the tariffs would also cover imported auto
parts. Trump argues that the tariffs
will increase domestic auto production, but it’s not clear how fast he can
accomplish that goal. Tariffs can encourage companies to use more products from
the United States and expand production, but new factories typically take
several years and can cost billions of dollars to construct.
The additional costs that tariffs will introduce could
also backfire economically, harming the US auto industry by squeezing its
profits and slowing its sales.
The measure could also set off more trade clashes with
foreign countries that send many cars to the United States. And it could invite
retaliation on American exports, including cars and agricultural products.
