The prices should come into force on April 2 and could skyrocket the prices
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- President Trump announced a 25% rate on all vehicles not built in the United States.
- This could increase $ 100 billion and these costs will probably be passed on to consumers.
- Trump also announced his intention to make tax deductible on car payments.
President Trump increases his trade war and millions of people could pay the price by announcing 25% of prices on all vehicles not manufactured in the United States. This marks a significant escalation because it apparently applies not only in Canada and Mexico, but in the world.
In a speech today, Trump said that this decision would stimulate growth and bring automotive jobs that have been sent to other countries. He also said that consumers would have the possibility of buying gasoline, electricity, hybrid or any other type of vehicle they prefer.
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Trump continued by saying that the automotive industry “will flourish as if it had never prospered before”. However, it is likely that consumers will obtain the short end of the stick because the prices should generate $ 100 billion in new income. Despite what the administration says, foreign countries do not pay that, companies do it and they probably transmit the additional cost, the consumer.
The White House has since published additional information on how the prices will be applied. According to an official press release, the 25% price will target imported passenger vehicles, including sedans, views, crossroads, mini -duties, vans, light trucks – and key automobiles such as engines, transmissions, parts of the powertrain and electric components. The administration also mentioned that the processes will be in place to extend prices to additional parts if necessary.
The exact details remain to be seen, but we can expect to learn more on April 2. Trump also mentioned that vehicles built in America would be confronted with “absolutely no price”. However, he suggested that prices could be linked to content from foreign pieces.
“If parts are made in America and a car is not, these parts will not be taxed or priced, and we will have very solid police services on this subject,” said Trump, answering a press question. “For the most part, I think it will train cars in one place. Right now, a car would be made here, sent to Canada, sent to Mexico, sent everywhere – it’s ridiculous. So it’s a very simple system. “
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After the press conference, the White House clarified that car manufacturers under the American-channel-channel (USMCA) agreement will have the opportunity to certify their American content. He said that systems “will be implemented in such a way that the 25% rate will only apply to the value of their non -American content” in these vehicles. However, vehicles and parts will remain without a price until these processes are fully in place.
Although prices can hide the rocket next week, the president has reiterated his intention to allow Americans to deduct interest in car loans. This would apply to vehicles made in America, but the details are practically nonexistent. However, it was previously thought that it worked as the deduction of mortgage interests.
