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Trump to Announce Automobile Taxes

U.S. President Donald Trump is set to reveal new customs duties targeting car imports. While the White House argues that this move will encourage domestic production, it is noted that it may create financial pressure for automobile manufacturers dependent on the global supply chain. Trump aims to attract production to the U.S. by imposing taxes on foreign cars and spare parts. However, since both U.S. and foreign car manufacturers continue to source parts from countries like Canada and Mexico, there is a possibility of price increases and decreased sales. Trump had previously imposed a 20% tax on products imported from China and a 25% additional tax on Mexico and Canada. However, when the automobile sector objected, a 30-day delay was granted for the tariffs on car imports from Canada and Mexico, expected to expire in April. The White House defends that the extra tariffs are not only a trade policy but also a measure against illegal immigration and drug trafficking. Yet, there are concerns that these actions could trigger global trade wars and harm the economy. Last month, Trump announced a 25% customs duty on automobile, pharmaceutical, and semiconductor imports starting from April 2nd. Furthermore, he had signed an executive order aiming to implement comprehensive reciprocal tariffs, expected to take effect the same day, to investigate commercial relationships. However, shortly after, a one-month exemption for automobile tariffs was granted on March 3rd within the U.S.-Mexico-Canada Agreement (USMCA).

Trump to Announce Automobile Taxes

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