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Trump Ponders 25% Import Tariffs on Foreign Cars
The White House is weighing a plan that would invoke national security to justify a 25% import tax on imported vehicles.
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The White House is weighing a plan that would invoke national security to justify a 25% import tax on imported vehicles, sources tell The Wall Street Journal.
Sources tell Reuters that President Donald Trump outlined the scheme when he met with carmakers on May 11 about easing future vehicle emission and fuel economy standards. The plan, still in the early stages of development, would use the Section 232 legal provision cited by the White House in March to rationalize import taxes on foreign steel and aluminum of 25% and 10%, respectively.
Trump has repeatedly threatened to tax cars from countries that levy import tariffs considerably greater than the 2.5% charged by the U.S. Invoking Section 232 would require an investigation and report by the U.S. Dept. of Commerce.
Last year the U.S. imported 8.3 million vehicles worth $192 billion, according to government data. Over the same period, the U.S. exported about 2 million vehicles worth $57 billion.
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