BY C STONE | STONE NEWS NETWORK ||| WASHINGTON DC
Levies or tariffs against foreign automakers could approach 25%, according to President Donald Trump. He is also considering similar duties against semiconductors and pharmaceutical imports.
These new tariffs could start on April 2, exactly one day after members from his cabinet are due to deliver reports to him outlining options for duties.
The European Union collects a 10% duty against the United States, which is 4x the 2.5% tariff the US collects. If President Trump goes forward with his plans on tariffs, these items could get quite expensive to buy.
Many Americans are aware that even foreign-made vehicles are produced in the United States. Specifically, he is targeting vehicles from countries that assemble and ship to the U.S.A.
What appears to anger President Trump is the tariffs applied against the United States. Tariffs could also rise substantially higher than 25%.
Starting on March 12, all steel and aluminum from Canada and Mexico will be subject to a 25% tariff - with no exemptions.
Many Americans are buying Canadian drugs at far lower prices than available to American citizens. This could change if pharmaceuticals are included.
Semiconductor tariffs could make producing U.S.A. - made semiconductors and components more economical, but the cost to start up these operations would be very expensive.
It takes on average 3 months for a modern computer micro processor to be created from start to finish. Will American buyers flock to American-made vehicles? They currently do - as Honda, Toyota, and Nissan all have manufacturing facilities within the United States.
The real question is: Will Americans buy cars that could potentially cost 25% or more in the future?
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