Masaki Kashiwara. (Kyodo)
WASHINGTON (Kyodo) — U.S. President Donald Trump will hold a press conference on Wednesday to announce additional tariffs on automobiles, White House spokeswoman Karoline Leavitt said.
Trump has said he was considering tariffs of around 25 percent on imported cars, up from the current 2.5 percent, as part of efforts to revitalize domestic manufacturing and bring more investment into the United States.
Leavitt did not disclose the specifics of the planned duties, including the date they will take effect.
Trump’s newest trade action could have a considerable impact on Japanese, German, South Korean and other foreign car makers, as well as their American rivals, which also produce significant volumes of vehicles outside the United States and procure parts from around the world.
As the car industry is a complicated business involving numerous suppliers, with manufacturers making huge investments in technology and plants before they roll out new models, it is not a quick or easy process to relocate car production to new lines in the United States, as desired by Trump.
Additionally, many mainstream economists have warned that higher tariffs would most likely result in increased costs not only for manufacturers but also for consumers.
Leavitt said the press conference is scheduled for 4 p.m. in Washington.
Trump’s auto tariffs will come before he plans to unleash broader reciprocal tariffs, targeting goods from countries around the world with matching duties, on April 2.
He labels that day as “liberation day,” repeatedly claiming that the United States has been “ripped off” by its allies and adversaries for many years.
Since returning to the White House for a nonconsecutive second presidency about two months ago, Trump has announced various types of tariffs.
They include 20 percent additional duties on goods from China and 25 percent levies on all steel and aluminum imports.
The Trump administration’s 25 percent tariffs on imports from Canada and Mexico, announced in spite of the North American free trade pact between the three neighbors, briefly took effect in early March, but are now paused until April 2.
AloJapan.com