Donald Trump News / Now Donald Trump will impose 25% tariff on foreign cars in America too...

Donald Trump News: US President Donald Trump has raised concerns of many countries around the world by announcing tariffs. After recently imposing tariffs on Venezuela, he has now announced a 25 percent tariff on foreign cars and their parts in the US. The White House claims that this move will boost domestic manufacturing and the US will receive $100 billion in revenue every year.

Trump's argument

Trump says that if companies manufacture their cars in the US, there will be no tariff on them. However, this decision may pose financial challenges for auto manufacturers who depend on other countries for their supply chain. This new import duty will come into effect from April 2 and its recovery will start from April 3.

Purpose of imposing tariffs

• The Trump administration believes that this tariff will:
• Promote local production in the US.
• Reduce dependence on foreign countries.

The US economy will be strengthened.

However, automobile industry experts say the move could lead to a rise in vehicle prices, increasing economic pressure on middle and working class consumers.

International reactions

Foreign leaders have criticized the decision, which is likely to increase global trade tensions. Canada and the European Union in particular have reacted strongly. The EU has announced retaliatory tariffs of $26 billion on US exports. At the same time, Britain, which exported 6.4 billion pounds worth of cars to the US in 2023, will be particularly affected by this new tariff.

Car prices will increase in America

Experts believe that Trump's tariff policy could deal a blow to the US automobile industry. The supply chain of auto manufacturers may be disrupted and customers may have to face expensive vehicles. This may make it expensive to buy a car in the US in the coming days.

Decline in automobile sector

• After Trump's decision, shares of American and foreign automobile companies declined.
• General Motors shares fell by 3%.
• Ford shares saw a slight increase.
• Stellantis (Jeep and Chrysler's parent company) shares fell by 3.6%.

Elon Musk's role

There was speculation about Tesla CEO Elon Musk's role in this decision, but Trump clarified that Musk has no contribution in this policy. He clarified that Musk has not given any advice on auto tariffs.