Trump Is Likely To Impose A 25% Tariffs On Cars Imported Into The US

Importers of Vehicles into the US may  soon be made to pay a 25% tariff for each of their vehicles. This tariff is specially targeted at vehicles being imported from Europe.

This new tariff regime is being contemplated by the President Donald Trump administration in a bid to push for a new trade deal.

The U.S. Commerce Department will provide its recommendations to President Trump by mid-February, after the department was called upon to investigate car imports on national security grounds last year.

While waiting for the outcome of this investigation, the White House has held back on imposing tariffs on European and Japanese vehicles as it continues trade deal talks.

The European Union currently imposes a 10 percent tariff on vehicles built overseas, while the U.S. taxes passenger cars imported cars with a 2.5 per cent tariff and pickup trucks with 25 per cent.

However, the Trump administration had being warned by a good number of car manufacturers of what could happen if he follows through with threats of a 25 per cent tariff.

These car makers have made claims to the effect that the planned 25% tariff increase would raise cumulative prices for U.S. vehicles by $83 billion annually and result in hundreds of thousands of job losses. They also assert that there is no evidence auto imports are a national security threat.