US President Donald Trump has announced that a 25 percent tariff will be imposed on all foreign cars imported into the US. Trump made it clear that this decision will be permanent. However, cars manufactured in the US will be exempt from this tariff.
US to Gain $100 Billion in Tax Revenue
According to Trump, this tariff will generate around $100 billion in tax revenue for the US. This decision is a major blow to foreign car manufacturers. The move aims to promote domestic car manufacturing in the US.
Canada and the EU Express Displeasure
Canadian Prime Minister Mark Carney called this decision a direct attack on his country. He said that the tariff war would hurt both the US and Canadian economies. European Commission President Ursula von der Leyen also expressed regret over the decision, stating that its economic impact would be assessed.
British Trade Organization Issues Warning
The Society of Motor Manufacturers and Traders (SMMT) in Britain warned that this decision would harm both American and British businesses and consumers. SMMT chief executive Mike Hawes said the move was not unexpected but was still disappointing.
Impact on American Consumers
A lobbying group called “Autos Drive America” warned that the tariff would negatively affect American consumers. The group’s president, Jennifer Safavian, said the tariffs would increase car prices, reduce consumer choices, and lead to fewer manufacturing jobs in the US.
