Washington: US President Donald Trump has raised tariffs on imported automobiles and parts to 25 per cent and indicated that the reciprocal tariff system that goes into effect on April 2 will be “lenient”. The new tariff will go into effect on April 2, a day Trump likes to call the “Liberation Day” when the reciprocal tariff system kicks in.
“We’re going to charge countries for doing business in our country and taking our jobs, taking our wealth, taking a lot of things that they've been taking over the years,” Trump said in remarks from the Oval Office on March 27. “What we're going to be doing is (levy) a 25 per cent tariff on all cars that are not made in the United States. If they're made in the United States, there is absolutely no tariff.”
The new tariff will apply to all cars and trucks assembled outside and shipped to the US, which accounts for half of all automobiles sold in the US. “The 25 per cent tariff will be applied to imported passenger vehicles (sedans, SUVs, crossovers, minivans, cargo vans) and light trucks, as well as key automobile parts (engines, transmissions, powertrain parts, and electrical components), with processes to expand tariffs on additional parts if necessary,” the White House said in a fact-sheet.
A White House aide said the new tariffs are expected to bring in $100 billion in revenues. The US president also said he plans to announce tariffs on other goods as well, such as pharmaceuticals, saying most drugs available in America were made abroad in either China or Ireland.
Regarding the reciprocal tariffs, Trump indicated that the US will not be reciprocal in the true sense and may not be at the same levels as those levied by trading partner companies on American goods; although no country will be spared.
Trump hints at concessions if China okays TikTok dealUS President Donald Trump has said he may offer to reduce tariffs on China to get Beijing's approval for the sale of the popular social media platform TikTok. "Maybe I give them a little reduction in tariffs or something to get it done," he told reporters at the White House. Earlier this month, Trump said the United States was in talks with four groups interested in acquiring TikTok, with the app facing an uncertain future in the country. A US law has ordered TikTok to divest from its Chinese owner ByteDance or be banned in the United States, enacted over concerns that Beijing could exploit the video-sharing platform to spy on Americans or covertly influence US public opinion. |
