Trump Proposes 200% Tariffs on Mexican Vehicle Imports
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Trump Proposes 200% Tariffs on Mexican Vehicle Imports

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Reneé Lerma By Reneé Lerma | Journalist & Industry Analyst - Mon, 10/14/2024 - 16:02

Donald Trump has proposed imposing tariffs of over 200% on vehicles imported from Mexico. His plan, outlined during a Fox News interview, aims to protect US auto manufacturers by preventing Mexican-made vehicles from being sold in the United States.

“All I am saying is, ‘I will put 200 or 500, I do not care.’ I will set a number where they cannot sell one car,” Trump stated. He emphasized his desire to shield American companies from competition, especially from factories located just across the southern border. “I do not want them hurting our car companies,” he added.

Trump has previously pledged a 100% duty on imported cars and trucks, citing the need to bolster the domestic industry. During a rally in Juneau, Wisconsin, he reiterated this stance, doubling the tariff figure from his earlier proposals. “When I say 200%, I am using it as a number. They would not be able to sell cars,” Trump explained in the interview. “I am not going to let them build a factory right across the border, sell millions of cars into the United States, and further destroy Detroit.”

This proposal is part of Trump's broader tariff threats. During his 2016 presidential campaign and presidency, he promised significant duties on Mexican vehicles, raising concerns among automakers. In 2019, automakers warned that tariffs as high as 25% on Mexican cars and parts could harm the industry, leading to higher vehicle costs and supply chain disruptions.

In 2018, under Trump’s leadership, the United States renegotiated the North American Free Trade Agreement (NAFTA) with Mexico and Canada, resulting in the US-Mexico-Canada Agreement (USMCA). The revised agreement included provisions aimed at keeping a larger share of the regional auto manufacturing sector within US borders.

In recent weeks, concerns about potential tariffs on Mexican vehicles have been growing. Mexican President Claudia Sheinbaum had previously expressed skepticism about the likelihood of these tariffs being implemented. She emphasized that it would be "very difficult" for the United States to impose tariffs as high as those suggested by Trump, warning that such measures would raise vehicle prices for American consumers and strain trade relations under the USMCA.

Photo by:   Pixabay

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