Trump’s announcement of the 25% auto tariffs was earlier. I’ve summarised the main points, as Trump covered a lot of separate ground (lumber, drugs, April 2 etc) and it was all a bit jumbled.
- a new 25% tariff on all cars and light trucks not manufactured in the United States
- will be on top of any existing tariffs
- the tariffs will remain in place throughout his 4-year term
- Trump wants to encourage domestic auto production, have manufacturers build plants in the US
- auto tariffs are set to take effect on April 2nd
- tariff collections begin April 3rd
- the administration is seeking approval for a tax deduction on interest payments for car loans—if the vehicle is made in America
- parts made in America but assembled into foreign-made cars will not be subject to tariffs
US equity index trade has resumed on Globex, opening lower.
Musk will be happy.
This article was written by Eamonn Sheridan at www.forexlive.com.
