President Trump on Wednesday said he is imposing a 25% tariff on automobiles not manufactured in the U.S.
President Trump on Wednesday said he will put a 25% tariff on automobiles and light trucks imported into the U.S., escalating his administration’s use of aggressive trade measures in an effort to boost domestic manufacturers.
« This will continue to spur growth like you haven’t seen before », Mr. Trump said from the Oval Office Wednesday afternoon. « We’ll effectively be charging a 25% tariff. But if you build your car in the United States, there is no tariff. »
Mr. Trump said the new auto tariffs will take effect on April 2 and that the U.S. would start collecting the duties the following day. The president added he believes the new import duty could raise between $600 billion and $1 trillion in revenue for the U.S. over the next two years.
« This number will be used to reduce debt greatly », Mr. Trump said. « Basically I view it as reducing taxes and reducing debt. »
White House staff secretary Will Scharf, who stood next to Mr. Trump during the announcement, offered a more conservative estimate of how much the new auto tariffs would raise, predicting roughly $100 billion in new revenue.
Mr. Trump also reiterated his goal of making interest paid on auto loans tax deductible, while noting that such a deduction would apply only to cars made in the U.S.
Tax deductions are generally only employed by high-income Americans because most taxpayers take the standard deduction, which means tax-deductible auto loans wouldn’t impact low- or middle-income households.
