Trump Reveals Extreme Tariffs Plan Guaranteed to Make Things Worse
Trump on Tuesday announced he would unveil an aggressive set of tariffs, confirming the worst fears of manufacturers across the auto, semiconductor, and pharmaceutical industries.
“It’ll be in the neighborhood of 25 percent,” the president said, when asked about the specific rate he’d be placing on foreign automobile imports. When asked about semiconductors and pharmaceuticals, he noted they’d be “25 percent and higher, and it’ll go very substantially higher over the course of a year.”
Trump told reporters at Mar-a-Lago that the tariffs on automobiles could come as soon as April 2.
In Trump’s telling, the tariffs are designed to strong-arm companies into bringing their manufacturing onto U.S. soil. About 20 percent of car sales in the United States last year were imports from Canada and Mexico. But 25 percent tariff on those sales would upend the auto supply chain and likely cause costs to rise dramatically, which would then of course lead prices for consumers to rise as well.
“Whether it’s auto tariffs that he comes up with on the fly or a general tariff, the net result is closures of plants all over the U.S. at the same time as Canada and Mexico,” Canada’s Automotive Parts Manufacturers’ Association president Flavio Volpe told Politico.
Time will only tell how Trump plans to convince American consumers that they should keep footing the bill—while the price of everything from automobiles to gaming consoles to Ozempic skyrockets.