U.S. President Donald Trump has announced the introduction of a 25% tariff on cars and light trucks manufactured outside the country. Speaking from the Oval Office on Wednesday, Trump explained that this initiative is aimed at driving substantial growth in the American automotive industry.
The tariff is set to take effect on April 2, 2025, with collections beginning the following day, April 3. Trump clarified that auto parts produced within the United States will be exempt from the tariff, even if they are used in vehicles assembled elsewhere. He assured that strict enforcement measures would be in place to prevent any violations.
Trump argued that the policy would encourage vehicle production to be centralized in one location rather than having different stages of manufacturing take place across multiple countries, such as Canada and Mexico. He criticized the current system, calling it inefficient and unnecessary.
Ontario Premier Doug Ford strongly condemned the decision, warning that the 25% tariff would only lead to higher costs for American consumers. Posting on X while Trump was still addressing reporters, Ford stated that the policy would create economic instability, drive markets downward, and ultimately put American jobs in jeopardy.
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