OAN Staff Break Wolf
5:50pm – Wednesday, March 26th, 2025
President Donald Trump announced Wednesday that he would impose a 25% tariff on automobile imports, which are scheduled to come into effect on April 2.nd.
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“This will continue to drive growth so you've never seen it before,” Trump said Wednesday. “We effectively charge 25% tariffs. But if you build a car in the US, there are no tariffs.”
President Trump said tariffs are expected to generate between $600 billion and $1 trillion in US revenue over the next two years.
“This number will be used to significantly reduce debt,” Trump said. “Essentially, I see it as a tax cut and a debt cut.”
“I think our automotive business will thrive like it has never thrived before,” Trump continued.
President Trump was dubbed on April 2ndnd The “Day of Liberation” is expected to announce more mutual tariffs to balance trade disparities with international trading partners.
This tariff also serves as an incentive for businesses to manufacture products within the United States. In particular, companies that want to avoid paying extra fees.
White House officials say foreign companies are expected to lower prices to compensate for tariffs to compensate for increased fees. NPR.
Despite Trump administration's optimism, a recent Harris poll has been conducted Guardian It turns out that 69% of independents, 57% of Republicans and 99% of Democrats are concerned about tariffs.
A recent study by Anderson Economic Group also found that blanket tariffs in Canada and Mexico could raise US car prices up to $12,000.
Last year, the US imported $474 billion in automotive products.
The Automotive Research Center has revealed that tariffs could halt production for carmakers, possibly leading to unemployment within the industry.
“In the long term, we expect that sales will fall, new used prices will rise and models that will be eliminated if those tariffs continue, and we have not heard any details about tariffs in the European Union, Japan or South Korea.” “Conclusion, lower production volumes, reduced supply, and prices are approaching 2021.”
Nevertheless, President Trump has cast confidence in policy, saying, “There's no fear, we'll win everything!!!”
Trump also claims that tariffs “will lead to the construction of many plants, in this case auto plants, and we'll see numbers we've never seen in both employment. There's a big number of construction at first, and in the end, many people are making a lot of cars.”
“If they have factories here, they're excited. If they don't have factories here, they have to pay the duties, so they have to make them and build them. It's very easy. And most of them have a pretty big factory here,” he continued.
Last year, the US imported $474 billion in automotive products.
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