“This will continue to spur growth,” Trump told reporters Wednesday. “We'll effectively be charging a 25% tariff.”
The tariffs, which the White House expects to raise $100 billion in revenue annually, could be complicated as even U.S. automakers source their components from around the world. The tax hike starting in April means automakers could face higher costs and lower sales, though Trump argues that the tariffs will lead to more factories opening in the United States and the end of what he judges to be a “ridiculous” supply chain in which auto parts and finished vehicles are manufactured across the United States, Canada and Mexico.
To underscore his seriousness about the tariffs directive he signed, Trump said, “This is permanent.”
The U.S. president reiterated his willingness to challenge allies by saying Thursday on social media that if the European Union coordinated with Canada, tariffs “far larger than currently planned” would be placed on them in retaliation.
Shares in General Motors tumbled nearly 8% in Thursday morning trading. Ford's stock fell 3%. Shares in Stellantis, the owner of Jeep and Chrysler, dropped nearly 4%. But the stock prices of electric vehicle makers Tesla and Rivian were up.
