[Reuters Breakingviews] US auto tariffs zoom past economic speed limit
NEW YORK, March 27 (Reuters Breakingviews) - President Trump unveiled 25% levies on cars and parts, endangering an interconnected, border-hopping supply chain. At maybe $75 bln or more, the cost could wreck industry profit. Cars are strategically valuable, and the US industry faces threats, but this is too much, too fast.
Full view will be published shortly.
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CONTEXT NEWS
U.S. President Donald Trump announced that his administration is to impose 25% tariffs on imported cars in a press conference on March 26. The new levies are set to go into effect on April 2, with collections beginning the next day.
Key automotive parts are also slated to be subject to tariffs, but on a date still to be specified, though “no later than May 3,” Reuters reported.
In addition, imports from Mexico and Canada covered under the countries’ free trade agreement will be able to certify their U.S. content for exemption, though non-U.S. content will still be tolled, according to a White House fact sheet. Automobile parts compliant with the agreement will remain tariff-free for now, until Secretary of Commerce Howard Lutnick establishes a process to identify their non-U.S. content.
