Trump thinks the VAST majority of vehicles American’s drive?
Will be be switched to be built in America?
Huh?
“We’ll effectively be charging a 25 percent tariff. But if you build your car in the United States, there is no tariff,” Trump told reporters.
Vehicles that meet the duty-free requirements of the United States-Mexico-Canada trade agreement will be taxed only on the non-U.S. portion of their components, the White House said.
The government will begin collecting the new import taxes at 12:01 a.m. on April 3. The White House later told reporters that the tariff would be added to an existing 2.5 percent levy, making the total charge 27.5 percent, and was aimed at addressing “a critical threat to national security.”….
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On Tuesday, he is scheduled to announce a sweeping “reciprocal tariff” designed to raise U.S. import taxes to match those levied by other nations on American products, perhaps his most decisive break yet with decades of trade orthodoxy. Seeking to allay financial market concerns, the president said Wednesday that people would be “very surprised” at how “lenient” the tariffs will be….
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Trump’s decision to raise taxes on imported vehicles represents a direct challenge to an industry that has never been more dependent upon cross-border commerce. Imports of automobiles, parts and engines last year totaled a record $474.3 billion, according to the Census Bureau.
Vehicles sold in the United States with name plates from GM, Ford or Stellantis emerge from supply chains that snake back and forth across U.S. borders with Mexico and Canada and draw on parts and components from Europe and Asia.
But the White House said Americans’ dependence upon other countries for roughly half of the 16 million vehicles purchased last year left a withered domestic industry….
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Trump had given automakers a brief reprieve earlier this month, exempting most of the output of their Mexican and Canadian facilities from tariffs he imposed on other products from the U.S. neighbors after pleas from the chief executives of the Big Three car companies.
The president expected the companies to begin relocating their production operations during the one-month respite, White House press secretary Karoline Leavitt said at the time.
“He told them they should get on it, start investing, start moving, shift production here to the United States of America, where they will face no tariff. That’s the ultimate goal,” Leavitt told reporters.
That won’t be easy.
For decades, presidents of both parties have encouraged manufacturers to establish supply chains based on efficiency and low cost. Changing those production networks will take years, cost billions of dollars and may achieve the president’s goals only by sacrificing other objectives…..
Note….
Importeted vehicles INTO America employee’s tens of thosands of AMERICAN workers….
Increasing prices with import taxes isn’t gonna have Foreign car manufacture’s move from abroad to America in a few days…..
Increase in prioces WILL cut purchases and THAT will cost American’s jobs….
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