US President Donald Trump on Wednesday announced a 25% tariff on cars imported from abroad. Trump claims that this move will boost the manufacturing sector in America. The White House hopes that this will increase revenue by $100 billion annually.
It will be implemented from April 1. Shares of American automobile company General Motors fell by 3% on Wednesday. Shares of Stellantis, the parent company of Jeep and Chrysler, also fell by about 3.6%.
Trump argues that this will open new factories in America. Various auto parts and finished vehicles made in Canada and Mexico will now be made in America. Trump has said that his decision is permanent.
Canadian Prime Minister Mark Carney has criticized Trump’s decision to impose tariffs. He said that this is a direct attack on us, we will protect our workers and companies.According to reports, the average price of a new car in the US is already around $49,000. If the new tariffs are implemented and passed on to customers, the price of imported cars could increase by $12,500.