Trump has announced a 25% tariff on all imported cars
According to the US CBS News (CBS) reported that on the 26th local time, US President Donald Trump signed a decree at the White House, announcing the imposition of 25% tariffs on all imported cars, and relevant measures will take effect on April 2.
Trump also said the auto tariffs would be permanent. Mr. Musk, the chief executive of Tesla, has not suggested any auto tariffs or asked for any benefits.
In addition, Trump also said that the United States will impose tariffs on wood and drugs.
U.S. consumers are likely to feel the impact of higher import tariffs. Anderson Economics Group, a U.S. research firm, estimates that new tariffs on all imported cars could raise the cost of cars by $2,000 to $12,200 for some models.
Adam Crisafoli, head of Vital Knowledge, a U.S. investment consulting firm, also said that Trump remains steadfast in his "tariff-first" policy, his pain threshold is high, and no one around him is urging him to exercise restraint or caution.
"Even those who agree with tariffs or the long-term benefits must accept that the economy will be severely disrupted for several quarters, growth will slow and inflation will rise," Crisafoli stressed.
The Fed said earlier in March that the tariffs could have an adverse impact, so it cut its forecast for U.S. economic growth to 1.7 percent, while forecasting higher inflation.
A new analysis by Oxford Economics found that the US tariffs could increase the cost of some products by as much as 4%, with home appliances, Musical Instruments, tableware and personal care items likely to see the biggest price increases.
Trump also said the auto tariffs would be permanent. Mr. Musk, the chief executive of Tesla, has not suggested any auto tariffs or asked for any benefits.
In addition, Trump also said that the United States will impose tariffs on wood and drugs.
U.S. consumers are likely to feel the impact of higher import tariffs. Anderson Economics Group, a U.S. research firm, estimates that new tariffs on all imported cars could raise the cost of cars by $2,000 to $12,200 for some models.
Adam Crisafoli, head of Vital Knowledge, a U.S. investment consulting firm, also said that Trump remains steadfast in his "tariff-first" policy, his pain threshold is high, and no one around him is urging him to exercise restraint or caution.
"Even those who agree with tariffs or the long-term benefits must accept that the economy will be severely disrupted for several quarters, growth will slow and inflation will rise," Crisafoli stressed.
The Fed said earlier in March that the tariffs could have an adverse impact, so it cut its forecast for U.S. economic growth to 1.7 percent, while forecasting higher inflation.
A new analysis by Oxford Economics found that the US tariffs could increase the cost of some products by as much as 4%, with home appliances, Musical Instruments, tableware and personal care items likely to see the biggest price increases.
