New Delhi: US President Donald Trump has announced a 25 % tariff on the automobile sector. These tariffs will affect the import of vehicles and auto parts by hundreds of billion dollars. According to a report, this tariff will be effective from May 3 and will include about 150 types of auto parts.
The new tariff list includes important vehicle parts such as engine, transmission, lithium-ion battery, tire, shock absorber, spark plug wire and break hose. Apart from this, tariffs have also been imposed on some electronic devices. The special thing is that automotive computers also fall under the category of electronic products which will be charged. In 2024, the US imported $ 138.5 billion in this category.
Officials of the Trump administration have clarified that this new 25% tariff on auto and auto parts will not be covered separately under any other baseline or mutual tariff. This means that dual rates will not be applied to them.
The White House has asked the Commerce Department to create a new process within 90 days, allowing American companies and vehicle manufacturers to ask the government to put tariffs on imported auto parts. This decision can affect the prices of vehicles in the US market and increase challenges for foreign auto companies.
If a vehicle is imported under the rules of the US-Mexico-Canada Trade Agreement, it will have to pay only 25% duty on non-American parts. This decision of the Trump administration has led to an upheaval in the automobile industry, as these tariffs can directly affect consumers and manufacturers.
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