Donald Trump Announces 25% Tariffs On All Foreign Made Automobiles

Washington: US President Donald Trump post Wednesday midnight announced a 25% tariff on all foreign-made automobiles, citing unfair trade practices by other nations. The announcement was part of a broader economic plan that he said would restore America’s dominance in global trade.

In his speech, Trump criticised several countries for imposing high tariffs on American goods while benefiting from access to the US market. He said, “Japan charges 46% and much higher for certain items like cars. We will charge 24%.”

'Indian PM is a great friend of mine but…': Donald Trump  

Speaking at the Make America Wealthy Again Event, US President Donald Trump said, "India very, very tough. The Prime Minister just left and is a great friend of mine, but you are not treating us right. They charge us 52% and we charge them almost nothing." Trump then announced 25% tariff on Indian exports to the United States.

Trump's sweeping reciprocal tariffs are aimed at promoting US manufacturing, raising risks of higher costs and trade wars.

Trump on imposing tariffs on Japan 

The US president also reflected on past dealings with Japan and said, “PM of Japan Shinzo Abe was a fantastic man but unfortunately taken from us by assassination. He was a great gentleman and he understood what I was talking about.” He added, “I had worked out a deal.”

Trump made these remarks as he kept a major US election promise by imposing what he referred to as reciprocal tariffs on trade partners, to provide a level playing field for American companies, boost local manufacturing, reduce trade deficit among other domestic goals.

He took action without Congressional approval, using the 1977 International Emergency Powers Act, in an unprecedented effort to disrupt and eventually reshape America's global trade relationships. 

What does these tariff mean for foreign entities 

The higher tariffs would target foreign entities that sell more goods to the US than they purchase, meaning these tariffs could remain for an extended period as the administration anticipates that other countries will reduce their tariffs and trade barriers. This move is aimed at addressing the $1.2 trillion trade deficit from the previous year.

While speaking at the White House, Trump presented a chart indicating that the United States would impose a 34% tax on imports from China, 25% on India, 20% tax on goods from the European Union, 25% on imports from South Korea, 24% on those from Japan, and 32% on items from Taiwan, 10% from Australia and New Zealand, among many other nations.  

Trump has pledged that factory jobs will return to the United States due to the taxes imposed on American trade partners.