Trump Imposes 25% Tariffs on Foreign-Made Cars
President Donald Trump announced 25% tariffs on all cars not made in the U.S., exempting U.S.-built cars. The proclamation is set to be effective on April 2, resulting in over $100 billion of new annual revenue to the U.S. The European Union criticized the tariffs, and auto stocks fell after the announcement.
Key Points
- Tariffs apply to foreign-made cars and light trucks
- Exemption for cars built in the U.S.
- European Union criticized the tariffs
- Auto stocks fell after the announcement
Pros
- Protects U.S. car manufacturing industry
- Generates over $100 billion in new annual revenue for the U.S.
Cons
- Could lead to retaliation from other countries
- May increase prices for consumers