Trump announces 25% tariff on US auto imports. EU expresses “deep regret”

Author:
Olha Bereziuk
Date:

The US President Donald Trump reported that starting April 3, a 25% tariff will be imposed on all cars imported into the US.

NBC News writes about this.

Trump expects auto companies to move to the United States and build new plants or expand existing ones. He has criticized companies that have opened plants in Canada and Mexico in recent decades, which he says are at the expense of American workers.

“If you build your car in the US, there will be no tariff,” he said.

The White House later clarified that foreign auto parts would also be taxed at a rate of 25%, even if the cars they go into are assembled in the United States.

However, companies importing cars under the United States-Mexico-Canada Free Trade Agreement (USMCA) will receive special treatment until the Commerce Department establishes a procedure for collecting the 25 percent tariff, the White House said.

USMCA-compliant auto parts will also remain duty-free until the Secretary of Commerce, in consultation with U.S. Customs and Border Protection, establishes a procedure for applying tariffs to their non-U.S. content.

The tariffs will begin collecting on April 3, and Trump said they will be “permanent”. He said the US could ultimately receive up to $100 billion in tariff revenue.

The EU has already reacted to the introduction of tariffs. European Commission President Ursula von der Leyen said she "deeply regrets" the US decision.

She added that the EU is currently assessing this statement along with other measures that the US plans to take in the coming days.

"The EU will continue to seek a negotiated solution while protecting its economic interests. As a major trading nation and a strong community of 27 Member States, we will work together to protect our workers, businesses and consumers across the European Union," she added.

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