The main market strategist of Slatestone Wealth, Kenny Polcari and Verdenance Capital Advisor Leo Kelly, are abolished in the tariff plan of President Donald Trump and his influence on the economy.
President Donald Trump On Wednesday, he announced new tariffs about car imports during a press conference at the White House.
The president said he would impose 25% of tariffs on all imported cars, compared to 2.5% earlier. He indicated Auto tariff He will enter into force on April 2, when he is expected to be published by his reciprocal tariff plans.
Trump, who views Tariff as a tax income to fund his plans for reducing taxes, at the same time encouraging the revitalization of domestic production, has previously suggested that he can impose car tariffs running “in a 25%neighborhood.”
In his remarks of the oval office, Trump said that the tariffs “will lead to the construction of many plants, in this case car plants, and you will see numbers you have not seen in terms of employment. It takes a little time, you will initially have great construction numbers, and then you will eventually have many people who make a lot of cars.
Tesla warns that it is exposed to the retail retailers in the middle of a trade war
President Donald Trump said 25% of the car tariff will help us with car production. (Anna Moneymaker / Getty Images / Getty Images)
Answer Trump’s car manufacturers to tariff plans Various in the conversations he led with them.
“If they have factories here, they are delighted. If they do not have a factory here, they will have to go and build them because otherwise they have to pay for tariffs. It’s very simple. And most of them have a pretty big factory here,” he explained.
The Canadian government has hinted that she plans to impose retribution. Prime Minister Ontario Doug Ford said in the post on Xu that Trump’s 25% of tariffs “on cars and light trucks will do nothing more than increasing the costs for the diligent American family.”
Trump threatens further tariffs to Canadian steel, aluminum, electricity, vehicles
He has now introduced almost half a trillion dollars to the 2024 car products. (Kevin Dietsch / Getty Images / Getty Images)
Tariffs could increase car costs for consumers by thousands of dollars, according to the Autoindustry Analysis. Higher costs could cause car manufacturers Production of border They also potentially lead to the loss of jobs in the industry, said car research center.
The United States introduced $ 474 billion last year, including passenger cars worth $ 220 billion. The biggest suppliers were Mexico, Japan, South Korea, Canada and Germany, who are all close American allies.
Cox Automotive said on Wednesday that if there were no tariff carvings to import auto industry from Canada and Mexico, vehicles from US products would increase by around $ 3000, while Car prices For vehicles made in Canada or Mexico, it would increase $ 6000.
It is expected that by mid -April there will be “almost all” vehicle production disorders in North America, which will lead to about 20,000 fewer vehicles produced daily, or about 30% of the production hit.
The North American supply chain is intertwined between the United States, Canada and Mexico, and the products covered by the USMac that Trump negotiated during his first term. (Emily Elconin / Bloomberg via Getty Images / Getty Images)
“In the long run, we expect sales to fall, new and used prices to increase, and some models will eliminate if these tariffs still exist, and we still hear details about the European Union, Japan and South Korea,” said Cox economist Jonathan Smoke in the Reuters report. “The bottom line, lower production, firmer supply and higher prices are around the corner, reminiscent of 2021.”
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The markets have been reduced on Wednesday in the anticipation of the tariff announcement, and the S&P 500 is lower by 1.12%. The shares in car manufacturers also decreased, with Tesla reduced by 5.6%and General Motors by 3.1%.
Reuters contributed to this report.
