Trump, ratcheting up trade war, presses ahead with auto tariffs

David Shepardson - Reuters - 26/03
U.S. President Donald Trump on Wednesday announced plans for long-promised tariffs of up to 25% on automotive imports, widening the global trade war he kicked off upon regaining the White House this year in a move auto industry experts expect will drive up prices and stymie production.
  • Long-promised duties on autos seen driving up prices, slowing production
  • Auto stocks and wider market tumble on tariff worries
  • Announcement precedes plans for April 2 reciprocal tariffs
WASHINGTON, March 26 (Reuters) - U.S. President Donald Trump on Wednesday announced plans for long-promised tariffs of up to 25% on automotive imports, widening the global trade war he kicked off upon regaining the White House this year in a move auto industry experts expect will drive up prices and stymie production.
"What we're going to be doing is a 25% tariff for all cars that are not made in the United States," Trump said at an event in the Oval Office. "We start off with a 2.5% base, which is what we're at, and go to 25%."

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Trump has long promised higher duties on imported cars, and the timing of the announcement suggests that they would coincide with his April 2 plans for reciprocal tariffs aimed at the countries responsible for the bulk of the U.S. trade deficit.
Trump, who sees tariffs as a tool to raise revenue to offset his promised tax cuts and to revive a long-declining U.S. industrial base, has for weeks promised to announce those levies, and possibly some additional sectoral tariffs, on April 2.

STOCKS FALL

Shares of U.S.-listed automakers fell on news of the press conference on concerns that tariffs would send shock waves through a global auto industry that is already reeli...
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