President Donald Trump is preparing to unveil new tariffs on auto imports as soon as Wednesday, according to sources familiar with the matter. This move would intensify his trade battle with global partners ahead of a broader tariff rollout planned for April 2.
The details of the auto levies remain unclear, including the level and scope of the tariffs, whether any exemptions will be granted, and whether the duties will apply immediately or gradually. The tariffs are expected to target major automotive brands from countries such as Japan, Germany, and South Korea, all key U.S. trading partners.
Shares of General Motors Co. and Ford Motor Co. dropped on the news, with both companies seeing a slight decrease in their stock prices. Analysts are concerned that these tariffs could disrupt North American automakers, which rely on integrated supply chains across the U.S., Mexico, and Canada.
The auto tariffs are expected to drive up car prices in the U.S., already grappling with inflation. If imposed, the levies would likely increase the cost of foreign-made vehicles, as well as U.S.-made cars if they rely on imported parts. Some analysts predict that new-car prices could rise by thousands of dollars per vehicle, potentially increasing production costs for models like crossovers by $4,000 or electric vehicles by $12,000.
Trump has stated that the tariffs will encourage domestic production and spur growth in the U.S. auto sector, forcing companies to shift more production to the U.S. However, with the auto industry’s complex supply chains, some experts argue that such a shift could take years. The tariffs could exacerbate concerns among automakers already dealing with trade uncertainties and market volatility.
The announcement of these tariffs marks another chapter in Trump’s unpredictable approach to trade policy, as he seeks to reshape U.S. industries through high tariffs and policy changes.
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