President Donald Trump spoke in the Rose Garden earlier today to announce that the United States would institute a 25 percent tariff on all foreign-made automobiles and “reciprocal” tariffs equal to approximately half of any tariffs levied against it. The administration will also implement a minimum tariff of 10 percent for all of the United States’ trading partners for imported goods.
He pointed to Thailand, India, and Vietnam as examples of countries charging too much for American imports such as motorcycles. He also raised issue with the percentage of American-made vehicles bought in America, comparing it to Japan with 94 percent of its vehicles being made in country, according to the president.
The reciprocal tariffs vary depending on the country and how much they currently tariff U.S. products, though it also includes "non-monetary" foreign tariffs as a part of the equation. The president brought out a chart to share the planned tariff rates for 50 countries. Notable announcements include a 34 percent tariff on China, 26 percent on India, 24 percent on Japan, 20 percent on the EU, and 10 percent on the UK.The president claimed that, because of his tariff plans, auto manufacturers including General Motors, Ford, Hyundai, Mercedes, Nissan, Stellantis, and Toyota, are going to invest billions of dollars into auto manufacturing in the U.S. The automobile tariffs go into effect at midnight.
What people are saying
National Foreign Trade Council President Jake Colvin issued a statement that said in part, “While the price of imported goods will undoubtedly rise, the President’s tariffs will also tack on added costs to American manufacturing, assembly, and farming. There is simply no way to mitigate all of the added costs of inputs to finished goods from the administration’s complex and growing web of tariffs. Consumers should expect to see higher prices for everything from groceries to home renovations to auto insurance as construction and repair costs rise.
With implications still not entirely known, Jay Timmons, president of the National Association of Manufacturers, said, “The high costs of new tariffs threaten investment, jobs, supply chains, and in turn, America’s ability to outcompete other nations and lead as the preeminent manufacturing superpower.
Last week, UAW President Shawn Fain expressed support for Trump’s tariffs, saying Trump is “stepping up to end the free-trade disaster that has devastated working-class communities for decades.” This is a turn from their previous stance on the president, who Fain called a “scab” during a speech he delivered at the Democratic National Convention last year at the height of the presidential race. Fain also said automakers should take on the additional costs of the tariffs.
More tariff news
Michigan auto group seeks tariff pause extension
MichAuto appealed to Commerce Secretary Howard Lutnick to delay the 25 percent tariff on imported vehicles and auto parts.
Trump issues 25% tariff on auto parts importers
The most significantly affected exporter is Mexico, followed by Canada, China, Japan, and South Korea.
EU retaliatory tariffs could hit US auto parts industry hard
Michigan exports nearly $520 million of rear-view mirrors to the European Union, which could be affected by the tariffs.
