Thursday, May 24, 2018

Trump Wants New 25% Tariff on Imported Automobiles

The Trump administration is using national-security laws to consider imposing new tariffs on vehicle and auto-parts imports, the Commerce Department said Wednesday, according to the Wall Street Journal.

Trump is asking for new tariffs of as much as 25% on automobile imports and  has asked his team to investigate using a legal provision of the 1962 Trade Expansion Act to find whether tariffs or other restrictions are needed on imported cars, according to WSJ. It is the same legal justification the administration used to impose tariffs on steel and aluminum imports in March.

In a Twitter message on Wednesday, Trump said, “There will be big news coming soon for our great American Autoworkers. After many decades of losing your jobs to other countries, you have waited long enough!”

But it won't be so good for American buyers of foreign cars and for those who buy products once made by those workers in America who will now be shifted to automobile manufacturing.

In other words, such a tariff will shrink the economy in ways easily seen and not so easily seen.


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