Trump spoke on Sunday, said he would place up to 200% tariffs on vehicles imported from Mexico.
The big 3 US auto makers all have plants building cars for the US market in Mexico.
Trump had previously promised 100% tariffs on imported cars and trucks. But on Sunday ratcheted this up to 200%:
“We’ll put a tariff of 200% on if we have to” “We’re not going to let it happen. We’re not letting those cars come into the United States.”
Analysts say that new tariff on Mexican vehicle exports “likely would drive up the cost of motor vehicles, domestic as well as imports, used cars as well as new.”
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Trump slapped huge tariffs on imports from China during his presidency. Current President Biden has pretty much maintained them. They are a populist policy, its always easy to kick China for domestic policy failings.
This article was written by Eamonn Sheridan at www.forexlive.com.
