In America, the enthusiasts of foreign cars are going to get a big shock. Because Trump has announced a huge tariff on cars imported from abroad. This will further increase the prices of foreign cars imported in the US, it is sure to fall on the pockets of customers. American President Donald Trump announced on Wednesday that he is going to put heavy tariffs on the auto import. After his decision, tension is likely to increase with business partners.
Trump said at the White House, “What we are going to do is to impose 25 percent tariff on cars not made in America. If those cars are made in the US, then they will not be tested.”
Trump’s decision will be effective from April 2, which is imposing heavy tariffs on import cars in the US. Its effect will also be seen especially on cars and light trucks made abroad.
Trump again boiled tariff ‘bomb’
Ever since Trump has taken power in America, he has been taking such decisions continuously, which is surprised by the world. He has imposed tariffs on goods imported from Canada, Mexico and China. At the same time, 25 percent tariffs have been imposed on steel and aluminum imports, although he had earlier offered temporary relief from the fees affecting North America to the automakers.
Market disturbed due to fear of recession
Due to uncertainty on Trump’s trade plans, the possibility of recession has started deepening, due to which the financial market has been shaken. Due to fear of tariffs, customers have also been seen to have less confidence in recent months.
America will put tariff on import cars from abroad
Wall Street saw a decline before Trump’s announcement to put tariffs on import cars. Tech-focused Nasdaq declined by 2.0 percent. The shares of the Automker General Motors closed down by 3.1 percent, while Ford’s shares saw a growth of 0.1 percent.
What is Trump’s argument behind the tariff?
Trump says that imposing tariffs will increase government revenue, will help revive the US industry and will get priority to American. But it is also true that the US relations with countries like Japan, South Korea, Canada, Mexico and Germany may deteriorate by planting heavy tariffs on import cars. All these countries are close partners of America.