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Trump Signals Further Auto Tariffs to Spur Domestic Manufacturing

Automakers have lobbied for tariff relief after reporting billions in extra costs

U.S. President Donald Trump speaks prior to signing "phase one" of the U.S.-China trade agreement in the East Room of the White House in Washington, U.S., January 15, 2020. REUTERS/Kevin Lamarque/File Photo
GM wants to bring manufacturing jobs back to Detroit.
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Overview

  • Trump warned that the existing 25 percent auto tariff could be raised soon to incentivize automakers to build plants in the United States.
  • He highlighted recent investment announcements, including GM’s $4 billion commitment to three U.S. plants and Hyundai’s $21 billion U.S. investment.
  • Automakers have pressed the administration to roll back the 25 percent duties after disclosing up to $5 billion in tariff exposure.
  • Ford Motor and Subaru of America have already raised prices on select models as costs from the current levies bite into margins.
  • Mexico secured a reduced 15 percent rate for cars assembled there under U.S. content rules, while South Korea is facing setbacks to its auto exports.