U. S.

Trump announces 25% tariffs on car imports to US

2 minute read

Trump announces 25% tariffs on car imports to US

US President Donald Trump has announced new import taxes of 25% on cars and car parts coming into the US in a move that threatens to widen the global trade war, the BBC reported.

Trump said the latest tariffs would come into effect on 2 April, with charges on businesses importing vehicles starting the next day. Charges on parts are set to start in May or later.

The president claimed the measure would lead to "tremendous growth" for the car industry, promising it would spur jobs and investment in the US.

The US imported roughly eight million cars last year, accounting for about $240bn (£186bn) in trade and roughly half of overall sales.

Mexico is the top foreign supplier of cars to the US, followed by South Korea, Japan, Canada and Germany. 

Many US car companies have operations in Mexico and Canada as well, set up under the terms of the longstanding free trade agreement between the three countries.

The White House said the order would apply not only to finished cars but also to car parts, which are often shipped in from other countries before getting assembled in the US.

However, the new tariffs on parts from Canada and Mexico are exempt while US customs and border patrol set up a system to assess the duties, the White House said.

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