Synopsis
On March 27, US President Donald Trump announced a 25% tariff on imported automobiles and parts, effective April 2, while indicating that the reciprocal tariff system would be lenient. The move aims to protect US jobs and generate significant revenue.Key Takeaways
- 25% tariff on imported vehicles and parts.
- Effective date: April 2.
- Projected revenue: $100 billion.
- Lenient reciprocal tariff system.
- Focus on protecting US jobs and industry.
Washington, March 27 (NationPress) US President Donald Trump has increased tariffs on imported vehicles and components to 25%, revealing that the reciprocal tariff system will commence on April 2 and will be “lenient”.
This new tariff will be implemented on April 2, a date Trump has dubbed “Liberation Day”, coinciding with the start of the reciprocal tariff system.
“We’re going to charge countries for conducting business in our nation and taking our jobs, our wealth, and many other things over the years,” Trump stated during a Wednesday address from the Oval Office.
“We will impose a 25% tariff on all vehicles not manufactured in the United States. There will be absolutely no tariff on those produced domestically.”
The tariff will impact all cars and trucks manufactured outside the US, which represent half of all vehicles sold within the country.
According to a White House fact sheet, “The 25% tariff will be applied to imported passenger cars (including sedans, SUVs, crossovers, minivans, cargo vans) and light trucks, along with essential automobile parts (such as engines, transmissions, powertrain components, and electrical parts), with plans to extend tariffs on additional components if needed.”
A White House official projected that the new tariffs could generate $100 billion in revenue.
Additionally, the president mentioned intentions to impose tariffs on other products, including pharmaceuticals, noting that most medications available in the US are produced overseas, particularly in China or Ireland.
As for the reciprocal tariffs, Trump suggested that the US might not reciprocate in the strictest sense and may not match the tariff levels imposed by trading partners on American goods; nevertheless, no nation will be exempt.
“We’re going to apply this to all countries, and we will do it in a very lenient manner,” he remarked. “I believe people will be pleasantly shocked. In many instances, it will be less than the tariffs they have imposed on us for decades. So I think people will be very, very surprised.”
He further commented: “We are going to be -- we are going to be very fair, very nice, indeed,” adding, “We have not received fair treatment from other nations, but we are going to be nice.”
