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Late last week, President Donald Trump decided to upend the automotive industry by levying a new 25 percent import tariff on all imported cars, which goes into effect on April 2. An additional 25 percent tariff on car parts is set to go into effect within the next month, which promises to make US-made cars more expensive as well, as many parts and subassemblies used in domestic manufacturing come from suppliers in Canada or Mexico.
During the election campaign (and in the years preceding it), Trump repeatedly claimed that the cost of tariffs would be borne by the exporters. But tariffs don't work that way—they're paid by the importer, at the time of import.
The White House does not appear to have any concerns about this, despite a report in The Wall Street Journal last week claiming that Trump had warned automakers not to pass the costs on to their customers.
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During the election campaign (and in the years preceding it), Trump repeatedly claimed that the cost of tariffs would be borne by the exporters. But tariffs don't work that way—they're paid by the importer, at the time of import.
The White House does not appear to have any concerns about this, despite a report in The Wall Street Journal last week claiming that Trump had warned automakers not to pass the costs on to their customers.
Read full article
Comments
