{"id":14516,"date":"2025-03-27T03:50:48","date_gmt":"2025-03-27T03:50:48","guid":{"rendered":"https:\/\/topat10.com\/?p=14516"},"modified":"2025-03-27T03:50:48","modified_gmt":"2025-03-27T03:50:48","slug":"trump-sets-auto-tariffs-at-25-drawing-swift-backlash-the-tariffs-announced-today-will-harm-not-help-says-worlds-largest-business-association","status":"publish","type":"post","link":"https:\/\/topat10.com\/?p=14516","title":{"rendered":"Trump sets auto tariffs at 25%, drawing swift backlash. \u2018The tariffs announced today will harm\u2014not help,\u2019 says world\u2019s largest business association."},"content":{"rendered":" \r\n<br><br>\n<ul class=\"wp-block-list\">\n<li>Auto stocks including <a href=\"https:\/\/fortune.com\/company\/general-motors\/\" target=\"_blank\">General Motors<\/a> and <a href=\"https:\/\/fortune.com\/company\/stellantis\/\" target=\"_blank\">Stellantis<\/a> tumbled as manufacturers awaited President Trump\u2019s latest tariff announcement on Wednesday. The <a href=\"https:\/\/fortune.com\/company\/dow\/\" target=\"_blank\">Dow<\/a> Jones U.S. auto manufacturers index dropped 5% while Elon Musk\u2019s <a href=\"https:\/\/fortune.com\/company\/tesla\/\" target=\"_blank\">Tesla<\/a> was down 5.6%. Industry estimates pegged the price increases as high as $10,000 due to the impact from the levies.&nbsp;<\/li>\n<\/ul>\n\n\n\n<p>President Trump pushed ahead with new tariffs on foreign-made cars and light trucks of 25%, he announced from the Oval Office on Wednesday. The new tariffs will launch on April 2 \u201cand we\u2019ll start collecting on April 3,\u201d said Trump, adding the levies would not hit cars built in the U.S.&nbsp;<\/p>\n\n\n\n<p>\u201cThis is going to lead to the construction of a lot of plants, in this case, a lot of auto plants,\u201d said Trump during the press conference. Trump said he expected the tariffs would fuel an increase in auto manufacturing in the U.S. that would push consumer prices down. He also suggested the White House might move ahead with plans to allow consumers to deduct interest payments on auto loans from tax bills if the car is manufactured in the U.S.<\/p>\n\n\n\n<p>\u201cI think our automobile business will flourish like it\u2019s never flourished before,\u201d said Trump. He said \u201cvery strong\u201d policing would go along with the 25% auto tariffs. \u201cThis is permanent. 100%,\u201d said Trump.<\/p>\n\n\n\n<p>The tariffs were initially set to take effect on March 4, but Trump later announced <a href=\"https:\/\/www.whitehouse.gov\/fact-sheets\/2025\/03\/fact-sheet-president-donald-j-trump-adjusts-tariffs-on-canada-and-mexico-to-minimize-disruption-to-the-automotive-industry\/\">adjustments<\/a> on imports from Canada and Mexico to lessen the squeeze on American automotive manufacturers and give them time to prepare. The administration had imposed 25% import levies on goods from Canada and Mexico but allowed the pause for cars and goods <a href=\"https:\/\/fortune.com\/2025\/02\/18\/president-trump-tariffs-inflation-cars-april\/\">traded<\/a> through the North American USMCA trade agreement. Trump then set a deadline of April 2 for announcing additional reciprocal tariffs and tariffs on cars imported into the U.S., but he reversed course and dropped the tariff announcement a week early.&nbsp;<\/p>\n\n\n\n<p>The one-month grace period on the 25% tariffs on cars and car parts came after Trump talked to representatives from Ford, General Motors, and Stellantis. Trump also expanded the grace period for other goods from Mexico and Canada. At the time, Trump told companies to \u201cstart investing, start moving, shift production here.\u201d<\/p>\n\n\n\n<p>However, experts have said that extending tariffs to auto parts with steel and aluminum will lead to hefty costs for consumers, auto manufacturers and their suppliers. Furthermore, adjusting a manufacturing supply chain often takes years, not weeks, experts have <a href=\"https:\/\/fortune.com\/2025\/03\/04\/tariffs-grenade-american-auto-production-libertarian-think-tank-analyst\/\">said<\/a>. Roughly one in five cars and trucks sold in the U.S. were built in Canada or Mexico, the Associated Press <a href=\"https:\/\/fortune.com\/2025\/03\/04\/tariffs-grenade-american-auto-production-libertarian-think-tank-analyst\/\">reported<\/a>. In 2024, the U.S. imported $79 billion worth of vehicles from Mexico and $31 billion more from Canada. As for auto parts, $81 billion worth of imports originated in Mexico and $19 billion from Canada.&nbsp;<\/p>\n\n\n\n<p>\u201cThe tariffs announced today will harm \u2014 not help \u2014 the US auto industry, endanger many American jobs, and lead to a hollowing out of auto manufacturing in the United States,\u201d John Murphy, Senior Vice President at the U.S. Chamber of Commerce, told <em>Fortune<\/em>. \u201cThese auto tariffs come on top of tariffs on steel, aluminum, and goods from Canada and Mexico.\u00a0 With additional reciprocal tariffs expected on April 2, the stacked tariffs on the auto sector are formidable.\u201d<\/p>\n\n\n\n<p>The American Automotive Policy Council (AAPC), an association that represents the policy interests of automakers Ford, GM, and Stellantis, said U.S. car manufacturers are committed to Trump&#8217;s vision of increasing production and jobs and will work with the administration on policies that &#8220;will help Americans.&#8221;<\/p>\n\n\n\n<p>&#8220;In particular, it is critical that tariffs are implemented in a way that avoids raising prices for consumers and that preserves the competitiveness of the integrated North American automotive sector that has been a key success of the President\u2019s USMCA agreement,&#8221; Governor Matt Blunt, president of AAPC, told <em>Fortune<\/em> in a statement.\u00a0<\/p>\n\n\n\n<p>Ken Kim, a senior economist at <a href=\"https:\/\/fortune.com\/company\/kpmg\/\" target=\"_blank\">KPMG<\/a>, wrote in a Wednesday <a href=\"https:\/\/kpmg.com\/us\/en\/articles\/2025\/february-2025-durable-goods.html\">note<\/a> that orders for vehicles and parts had jumped 4% in February, the most significant rise in three years. The rise was due to front running in the auto industry to lock in prices before the tariffs could take effect. Industry estimates pegged the price increase on new vehicles in a range from about $2,000 to $10,000 or more, which would represent a 20% increase on the average transaction price of $48,500, Kim wrote.&nbsp;<\/p>\n\n\n\n<p>\u201cConsumers are already reeling from elevated inflation,\u201d Kim wrote. \u201cTalk about sticker shock.\u201d<\/p>\n\n\n\n<p>Overall, spending dropped 0.3% in February, the most meaningful decline in seven months, according to Kim, and it\u2019s due to the uncertain economic outlook.&nbsp;<\/p>\n\n\n\n<p>\u201cThe drop could be an early indication that business leaders are pulling back on future capital spending due to the uncertain tariff environment.<\/p>\n\n\n\n<p>According to Scott Lincicome, vice president of general economics at the libertarian think tank Cato Institute, automotive tariffs would not only raise prices on cars, but they would hurt U.S. based automakers. It\u2019s long been acknowledged by auto industry experts that free trade and investment have fueled growth and stability of the auto industry since the 1990s, he wrote.&nbsp;<\/p>\n\n\n\n<p>\u201cThis is why, when Trump threatened new tariffs on automotive goods in 2018, basically every major U.S. business group\u2014the Alliance of Automobile Manufacturers (which includes Detroit automakers), the Association of Global Automakers, the Motor and Equipment Manufacturers Association, the National Association of Manufacturers, the U.S. Chamber of Commerce, and the Business Roundtable\u2014opposed them, as did all the automakers located here.\u201d<\/p>\n<p>This story was originally featured on <a href=\"https:\/\/fortune.com\/2025\/03\/26\/trump-sets-auto-tariffs-foreign-made-plants-interest-loans-car\/\" target=\"_blank\">Fortune.com<\/a><\/p>\r\n<br>\r\n","protected":false},"excerpt":{"rendered":"<p>President Trump pushed ahead with new tariffs on foreign-made cars and light trucks of 25%, he announced from the Oval Office on Wednesday. The new tariffs will launch on April 2 \u201cand we\u2019ll start collecting on April 3,\u201d said Trump, adding the levies would not hit cars built in the U.S.&nbsp; \u201cThis is going to [&hellip;]<\/p>\n","protected":false},"author":325,"featured_media":14517,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[123],"tags":[],"class_list":["post-14516","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ 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