Donald Trump again emphasized the US First at the 'Make America Wealth Again' program held at Rose Garden.
This 25% auto tariff will be levied on all vehicles, which are made outside the US. That is, vehicles from Europe, Japan, South Korea, China or any other country will have to pay 25 percent fee. On the other hand, if the work has been assembled in America, but their parts have come from abroad, then they will get freedom from this tariff.
That is, companies that have production facilities in the US, such as Toyota, BMW, Honda etc., will get relief from the tariff.
Relief under USMCA Agreement
If a vehicle is imported under the Rules of the US-Maxico-Canada Trade Agreement (USMCA), it will have to pay a 25% fee for non-American parts only. This can provide some relief on vehicles coming from these countries. This decision of the Trump administration has intensified the movement in the automobile industry, as these tariffs can directly affect consumers and manufacturers.
The Trump administration says that this Auto Tariff will receive additional revenue of $ 100 billion annually. Which they will use in domestic infrastructure and industries. However, the price of foreign cars for American consumers will increase. Apart from this, the tram administration also claims that their policy will increase jobs in the American auto industry. Which will provide jobs to many Americans.
