Starting April 2, a 25% tariff will be applied to all foreign cars entering the USA. And if you thought that was bad, the White House also confirmed in a fact sheet shared on its website that auto parts such as engines and transmissions will face the same 25% tariff, even if said parts are used in cars assembled here in the States by May 3. Needless to say, automakers are now facing a serious logistical mess, as production lines built on global sourcing are thrown into uncertainty.
To make things even more complicated, Trump also announced a set of sweeping “reciprocal tariffs” on global imports. These range from 10% to 50%, depending on the country, including a 34% tariff on Chinese goods, 20% on imports from the European Union and 24% from Japan. On top of that, there’s a new 10% baseline tariff on all U.S. imports from any country, regardless of origin.
Read Article