As promised, President Donald Trumpâs 25 percent tariffs for imported vehicles went into effect Thursday, sending the auto industry into full panic mode. Some analysts are predicting a $5,000 to $10,000 price hike on new cars out of the gate, while others are still struggling to wrap their heads around the logic of Trumpâs auto tariffs. It was a nuclear-level threat for the already unsettled auto industry, with little relief in sight.
Trumpâs argument is relatively straightforward, if nonsensical: Donât like the tariffs? Just buy an American-made car. The only problem is that there is no such thing. Even vehicles made in the US rely on a complex supply chain that runs across borders and through multiple nations. The average car contains roughly 30,000 individual parts. Even cars produced domestically obtain 40â50 percent of their parts from abroad, according to Dan Ives, the global head of technology research at Wedbush Securities, a financial services firm.
âThe tariffs are a debacle of epic proportions for the auto industry and US consumers as the concept of a US made ca …
President Donald Trump on Monday said he's not open to pausing planned reciprocal tariffs as his trade war continues to roil markets and create political headaches for fellow Republicans.
The White House, including Trump, continued to send conflicting messages about whether his tariffs were an effort to bring nations to the table or a massive policy shift aimed at reorienting the US economy.
"There can be permanent tariffs and there can also be negotiations," Trump told reporters at the White House.
Treasury Secretary Scott Bessent told Fox Business that "50, 60, maybe almost 70 countries now have approached" the White House to discuss tariffs.
Earlier in the day, White House senior counselor Peter Navarro wrote in the Financial Times, "This is not a negotiation. For the US, it is a national emergency triggered by trade deficits caused by a rigged system."
Amid mounting political pressure, the GOP leaders of both chambers made it clear they stand behind the president.
"I don't think that has a future," Senate Majority Leader John Thune told reporters about a bipartisan bill to rein in presidential tariff powers.
Thune's comments came after the White House formally said that Trump would veto a bill to rein in presidential tariff power.
So far, seven Senate Republicans, including Sens. Chuck Grassley and Mitch McConnell, have said they would vote for such a bill. Grassley is the senior most Senate Republican and third in line to the presidency. McConnell led Senate Republicans for nearly two decades.
Across the Capitol, Speaker Mike Johnson sounded a similar note.
"You've got to give the president the latitude, the runway to do what it is he was elected to do," Johnson told reporters when asked about similar House legislation.
Under Grassley's bill, new tariffs would expire if Congress didn't approve them within 60 days. Presidents would also be required to notify Congress of future tariffs ahead of their announcement. Rep. Don Bacon of Nebraska, one of the most vulnerable House Republicans, has said he would introduce legislation similar to Grassley's in the House.
Before Trump, free trade was one of the pillars of the modern Republican Party. Trump has supported protectionist policies for decades and has been deeply critical of US trade policy.
The White House has sought to buck up support for Trump's latest round of tariffs amid a slump on Wall Street.