US President Donald Trump announced a 25% tariff on cars not made in the United States starting April 2. This decision aims to boost revenue and support local car manufacturing.
Details of the New Tariff
Trump declared that all cars not made in the US will now be subject to a 25% tariff. The only exemption is for cars assembled within the country. According to a presidential proclamation, this new tariff is projected to generate over $100 billion in additional annual revenue.
Global Reactions
The European Commission voiced its disagreement with the new tariff. Market participants stated that this move significantly complicates business planning. The stock market is experiencing fluctuations, with shares of American car manufacturers already declining.
Electric Vehicles and the Tesla Situation
Although Tesla has manufacturing plants in the US, it might also be affected due to the new policy as some of its components are imported. Concurrently, a contradiction arose: Trump expressed support for Tesla by holding a presentation of their cars at the White House, but Elon Musk, a federal operations advisor, was not involved in the tariff decision-making.
The introduction of new tariffs has received mixed reviews and may impact the entire automotive market. This is particularly challenging due to global supply chain issues faced by companies like Tesla.
