President Donald Trump has announced a 25% tariff on auto imports and parts.
Gatekeepers News reports that Trump said the move is a measure to boost American manufacturing and reduce dependence on imported vehicles.
The tariffs, set to take effect at 12:01 a.m. on April 3, will apply to all foreign-made cars and light trucks, with additional duties on key auto parts expected later in the month.
Major automakers are experiencing losses. Toyota, saw its stock drop more than 3% in Japan, while shares of Nissan, Honda, and Mitsubishi Motors also suffered steep declines.
Defending the move, Trade advisor Peter Navarro said foreign competitors had turned the U.S. auto sector into a “lower-wage assembly operation for foreign parts.”
He singled out Germany and Japan for keeping high-value production within their borders while outsourcing lower-cost assembly to the U.S.
According to the White House; vehicles and parts qualifying under the U.S.-Mexico-Canada Agreement (USMCA) could receive exemptions or reduced tariffs based on their American content.
