Speaking at a signing ceremony at the White House, Trump described the decision as “the beginning of America's day of liberation.” Trump also added “We will impose a 25% tariff on all cars that are not made in the United States,”. The new regulation aims to incentivize domestic production and bring car companies back to the US.
Expanding Trade Tariffs
The Trump administration's tariff policy is not limited to automobiles. Additional 25% tariffs on some products imported from Canada and Mexico came into effect on March 4. However, tariffs on products covered by the US-Mexico-Canada Agreement (USMCA) were postponed until April 2.
In addition, the US imposition of additional tariffs on steel and aluminum imports was met with a global response. Canada announced that it would impose a 25% tariff on US products worth CAD 29.8 billion, while the European Union announced a EUR 26 billion retaliation plan.
Finally, Trump announced that countries buying oil or gas from Venezuela would be subject to a 25% tariff as of April 2. The new tariffs are among the developments that will change the global trade balance.
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