Trump says new tariffs on autos coming around April 2
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The automobile levies will put some of the biggest brands in Japan, Germany and South Korea in US President Donald Trump’s crosshairs.
PHOTO: BLOOMBERG
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WASHINGTON - US President Donald Trump said he would unveil new tariffs on automobiles, adding to his wave of sweeping import levies as he seeks to remake global trade relationships and pressure companies to move production to the US.
“We are going to do that on, around April 2,” Mr Trump told reporters on Feb 14 in the Oval Office, as he signed executive actions on energy policy.
The move is the latest in a rapidly widening trade war as Mr Trump delivers on his campaign pledges to institute sweeping tariffs on US allies and rivals alike. It comes a day after Mr Trump unveiled his most expansive measure yet, ordering his administration to consider imposing reciprocal tariffs
The reciprocal levies on nations that have import taxes on US goods could come as soon as April. Those levies are distinct from the sectoral ones Mr Trump promised on autos and has threatened against other industries, including energy, semiconductors and pharmaceuticals. Earlier this week, he also announced plans to slap 25 per cent duties on steel and aluminum imports.
The auto threat offers to put some of the biggest brands in Japan, Germany and South Korea in Mr Trump’s crosshairs. Imports accounted for roughly half of the US auto market last year. About 80 per cent of Volkswagen AG’s US sales are imported, while 65 per cent of Hyundai-Kia’s US sales are imported, according to figures from Global Data, a market researcher.
Mr Trump on Feb 14 did not provide any details on the scope or rate of the potential auto levies. It is also unclear the impact they would have on vehicles built under the free trade agreement between the US, Canada and Mexico. Auto production supply chains across North America are highly integrated.
The US neighbours, both major trading partners, are already facing a threatened 25 per cent tariff on imports that Mr Trump announced – and then paused until March – in a bid to extract concessions from Mexico and Canada over border security, one of his top priorities.
Mr Trump has used tariffs to extract policy concessions from other nations on immigration and the flow of illegal drugs. And he has highlighted tariffs as a tool that he says will convince companies to move production to the US.
On the campaign trail, he mused that he wanted German car companies to become American corporations, a lofty goal that is unlikely to come to fruition because of trade barriers. BLOOMBERG
