With Car Tariffs, Trump Puts His Unorthodox Trade Theory to the Test
With sweeping auto levies, the president is putting his beliefs about tariffs into practice on the global economy. Economists aren’t optimistic.
It Is Happening Every Day, Every Where
With sweeping auto levies, the president is putting his beliefs about tariffs into practice on the global economy. Economists aren’t optimistic.
The scale of the damage depends on the circumstances of each company’s supply chain.
The United States is a crucial export market for the German auto industry, which is already suffering from weak sales and increased competition from China.
The measure, which is intended to bring car factories to the United States, could significantly raise prices for consumers.
Carmakers’ declines extended in after-hours trading on the news of 25% tariffs on imported vehicles. The drop reflected concerns about inflation.
The levies could hurt European automakers when the industry is already struggling, especially in Germany, Europe’s biggest economy.
The drop reflected market volatility fueled by President Trump’s whiplash on trade and concern that sweeping tariffs could reignite inflation and slow the economy.
The president is expected to announce tariffs on foreign cars on Wednesday, a measure that could bring car factories to the United States but raise prices for consumers.
As the billionaire and his allied groups pour more than $20 million into a race for the state’s top court, his car company is suing Wisconsin over a law restricting vehicle sales.
Hyundai already makes cars in the United States, in Georgia and Alabama.