Experts predict a serious blow to the automotic industry, a reduction in the manufacture of 30% and the loss of thousands of jobs.
US president Donald Trump has announced the introduction of 25% of duties for all cars and auto parts performed overseas. New tariffs can significantly affect the prices of cars in the United States and complicated labor processes in North America. Reuters reported this on Thursday, March 27.
According to analysts, nearly half of cars sold in the United States last year were imported. New duties can add up to $ 3000 to the cost of cars made in the United States, and up to $ 6,000 for cars from Canada and Mexico.
Shares of the largest automaker are already reacting to a fall. In particular, General Motors Securities fell 8%, Ford and Stellatis-by 4.5%, and Toyota, Honda and Hyundai lost 3-4%.
The car and government companies of other countries criticize Trump’s decision. The Autos Drive Association America, which represents the largest foreign car manufacturer, including Honda, Hyundai, Toyota and Volkswagen, has warned that the duties will increase the manufacture and sale of cars in the United States. “
Trump said these steps should stimulate production in the United States. However, experts predict a serious blow to the automotic industry, a reduction in the manufacture of 30% and the loss of thousands of jobs.
Meanwhile, the United Auto Workers Trade Union supported Trump’s policy, emphasizing that it could restore “thousands of great paid jobs in the car industry” in the United States.
Remember, Trump signed a command to introduce 25% duties for cars that gathered outside the United States.
Previously, Donald Trump said US authorities would introduce a fee of 25% from those from those countries to buy oil or gas from Venezuela on April 2. At the same time, he said he could release some countries from tariffs if he considered it necessary.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.