By AP News
Photos: YouTube Screenshots
President Donald Trump said Wednesday he was placing 25% tariffs on auto imports, a move the White House claims would foster domestic manufacturing but could also put a financial squeeze on automakers that depend on global supply chains. Read more.
Why this matters:
The tariffs, which the White House expects to raise $100 billion in revenue annually, could be complicated as U.S. automakers source their components from around the world.
The tax hike starting April means automakers could face higher costs and lower sales, though Trump argues that the tariffs will lead to more factories opening in the United States and the end of what he judges to be a “ridiculous” supply chain in which auto parts and finished vehicles are manufactured across the United States, Canada and Mexico. | RELATED COVERAGE ➤ |
