Trump's 25% Tariff on Foreign Cars in US

Trump Tariff: Trump stated that they are going to impose a 25 percent tariff on all cars not manufactured in America. If they are made in America, there will be no tariff.

Trump Tariff: US President Donald Trump made a major announcement on Wednesday. Trump announced a 25 percent tariff on all foreign cars imported into the United States. Furthermore, the US President stated that this tariff decision is permanent. This decision by US President Trump could cause upheaval in the auto sector.

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.