Former U.S. President Donald Trump has announced a 25% tariff on imported cars and auto parts, which will take effect from April 2. Trump has called this move “Liberation Day”, saying it will help bring jobs and money back to the United States. He also introduced a reciprocal trade system, meaning that foreign companies doing business in America will have to pay tariffs.
Trump’s Statement
Speaking at the Oval Office, Trump said:
“We will impose tariffs on countries that do business here and take our jobs. For many years, these countries have been taking from us, but now we will take from them.”
Which Cars Will Be Affected?
The 25% tariff will apply to cars built outside the U.S. and then imported. This new rule will impact nearly 50% of cars sold in America.
- Passenger cars such as sedans, SUVs, and minivans
- Light trucks
- Key automobile parts like engines, transmissions, and electronic components
- More items may be added to the list in the future
According to White House officials, this tax will generate around $100 billion for the U.S. government. Trump is also considering tariffs on other imported goods, especially pharmaceuticals, as many medicines sold in America are made in China or Ireland.
Impact on India
Many are wondering how Trump’s new auto tariff will affect India.
- India mainly exports cars to developing countries, not the U.S., so the Indian car industry will not be directly impacted.
- However, India’s auto parts industry could face problems. Companies like Motherson Group, Sansera Engineering, and Suprajit Engineering supply parts to U.S. car manufacturers.
- If tariffs increase, these Indian companies may struggle to compete in the American market.
Trump has also indicated that U.S. tariffs are currently lower than those imposed by other countries on American products. He stressed that all countries will be affected by this decision.
With this aggressive trade policy, Trump aims to protect U.S. industries, but it could create global trade tensions, including with India.
