After announcing new tariffs on a variety of imported goods from various countries, U.S. President Donald Trump revealed that he planned on implementing tariffs on vehicles imported from anywhere outside of the U.S. earlier this week – not just China, Mexico, and Canada, as previously mentioned. Trump didn’t provide too many details about those new universal automotive tariffs at the time, only stating that they would be taking effect “around April 2nd.” Now, we’re learning a bit more about these new levies.
According to Reuters, Trump stated that he plans to implement new tariffs on all imported automobiles that are “in the neighborhood of 25 percent,” which will also apply to semiconductors and pharmaceutical imports as well, though he didn’t provide a date when those levies might be taking effect. Trump has previously mentioned that he wants to use these new tariffs and reciprocal ones as a tool of sorts to level the global trading playing field. For example, the European Union currently collects a 10 percent tariff on vehicle imports, while the U.S. passenger car tariff stands at just 2.5 percent – though pickups are subjected to a 25 percent tariff known as the “chicken tax,” which has been in place since 1964.
All of these moves figure to impact Ford in various ways, and CEO Jim Farley has been quite vocal about Trump’s tariffs in recent weeks. After calling for more comprehensive tariffs and saying that these actions are causing “chaos” in the industry – adding that potential Mexico tariffs could “blow a hole in the U.S. industry that we’ve never seen” – the exec paid a visit to Capitol Hill last week to discuss these matters with the Trump administration.
Following that visit, Farley voiced his support for Trump’s plan to place tariffs on all imported automobiles, regardless of where they’re coming from. “We applaud President Trump’s idea to look at all vehicle imports to the U.S., an important step forward,” Farley said. “Comprehensive trade policies are imperative to achieving the president’s vision to strengthen the U.S. auto industry.”
Comments
These daily Trump updates are already tiring. Hope he slows down after a few months. And falls into a deep sleep.
Trump reminds me so much like Richard Nixon….he lasted two years and that makes me think that Trump will the same.
You flunked history! Richard Milhouse Nixon, who was Governor of California, then Vice President from 1953 to 1961, ran for President and lost in 1960. He ran again for President in 1968 and won.
He was re-elected in 1972. But he resigned in 1974, so he was President for
two consecutive terms, and completed six years, not two!
Yet just 2 of his second term.
Which Trump is on.
That’s ok – we will just stop buying vehicles that VINs start with 1, 4, 5, and 7MM. 7MM was a surprise – sneaky of the Toyota/Mazda plant VINs not starting with 1, 4, 5. Maybe there are others.
Stop buying any new vehicles for the next 4 years. 25% tariffs on Canadian steel aluminum, possible 25% on anything imported from Mexico and Canada, and tariffs across the board on all countries. What will happen is just what happened in the past the auto companies will raise prices on domestically produced vehicles despite no tariffs. Instead of domestic manufacturers using the tariffs on imports to take advantage of a lower price to increase sales the domestic manufacturers get greedy and increase prices. The consumer pays the higher price with vehicles becoming less affordable.
If Trump wants to really revive domestic sales, then he must apply tariffs to all foreign brand vehicles, including Japan, South Korea, and all of Europe. Even if those brands are assembled in the U.S. they deserved a tariff!
Rex Tillerson was so correct about tRump!