Boost to Domestic Manufacturing
President Trump said this would boost domestic manufacturing. He stated that it would promote growth. Note that this decision by US President Trump will come into effect from April 2nd, and its collection will begin from April 3rd.
No Tariff on Cars Made in America
Trump said that we are going to impose a 25 percent tariff on all cars that are not made in America. If they are made in America, no tariff will be levied on them.
Tariffs also imposed on imports from China and Canada
President Donald Trump has imposed tariffs on imports from Canada, Mexico, and China, along with a 25 percent duty on steel and aluminium imports. However, he had previously offered vehicle manufacturers temporary relief from taxes affecting North America.
Decline Seen Before Announcement
Before US President Donald Trump’s announcement of tariffs on foreign cars, a decline was seen on Wall Street, with the tech-focused Nasdaq falling by 2.0 percent. Shares of vehicle manufacturer General Motors fell by 3.1 percent, while Ford saw a 0.1 percent increase.
50 Percent of Cars are Manufactured Domestically
Approximately 50 percent of the cars sold in the US are manufactured domestically. Of the imported cars, about half come from Mexico and Canada, while Japan, South Korea, and Germany are also major suppliers.
