U.S. Announces 25-Percent Tariffs on Imported Vehicles, Starting April 2nd
The U.S. administration has announced it will impose 25-percent tariffs on vehicles imported into the United States, effective April 2nd. That, of course, is if there isn't another late-minute postponement as we've seen several times this year already.
The consequences of the tariffs
If the tariffs do take effect, it will have the effect of an extremely cold shower on the auto industry and will, by unanimous opinion, have major consequences. It also represents a significant escalation in the trade war launched by the U.S. against its North American allies and trading partners, Canada and Mexico, as well as European and Asian countries.
The tariffs will have devastating effects on the global supply chains of the automotive sector, which are already shaken by other tariffs, notably on aluminum and steel.
The unpredictability and lack of clarity and long-term vision of the American administration will have major consequences on the industry. If nothing changes by April 2, we must prepare for a major crisis in the automotive industry.
Here is what U.S. president Trump had to say in his announcement, which came after markets had closed for the day:
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