Trump announces 25% tariff on imported cars
The SMMT has branded the move ‘disappointing’
Donald Trump has announced that he is placing a 25 per cent tariff on car imports to America, in a move that the White House believes will boost domestic manufacturing.
Speaking at a White House briefing, the president said that the 25 per cent tariff would ‘continue to spur growth’ and that it was a ‘simple system’.
“The beauty of the 25 [per cent] is it’s one number. And that number is going to be used to reduce debt greatly in the United States.
“Basically I view it as reducing taxes and also reducing debt, and within a fairly short period of time I think we’re going to have a balance sheet which will be outstanding.”
The White House expects the tariffs – which go into effect on April 2 – to raise 100 billion dollars (£77 billion) in revenue annually. However, there could be some complications as US-based firms source parts from outside the country.
Mike Hawes, Society for Motor Manufacturers and Traders (SMMT) chief executive, said that the announcement was ‘not surprising, but nevertheless disappointing’.
He added: “The UK and US auto industries have a long-standing and productive relationship, with US consumers enjoying vehicles built in Britain by some iconic brands, while thousands of UK motorists buy cars made in America.
“Rather than imposing additional tariffs, we should explore ways in which opportunities for both British and American manufacturers can be created as part of a mutually beneficial relationship, benefitting consumers and creating jobs and growth across the Atlantic. The industry urges both sides to come together immediately and strike a deal that works for all.”
