If the new tariffs in the United States are implemented, they will escalate the trade war, intensifying tensions with North American and European trade partners.

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2025-02-21 16:24

On February 18,local time,U.S.President Trump stated that he would impose a tariff of about 25%on imported cars,and he would make more statements on this topic on April 2.

Bloomberg pointed out that if the new tariffs are implemented,they will escalate the trade war.

Trump previously announced that he would impose a 25%tariff on steel and aluminum in March,but his speech on the 18th was his most detailed comment to date,specifically outlining other industries that would be affected by the new barriers.

"I might tell you on April 2,but it will be around 25%,"Trump told the media at his Mar-a-Lago club when asked about his car tariff plan.When asked about similar tariffs on drugs and semiconductor chips,Trump said,"The tax rate will reach 25%or even higher,and will increase significantly within a year."

Trump stated that he wants to give relevant companies"time"before announcing new import taxes.He said,"When they enter the United States and have factories here,there are no tariffs,so we want to give them a little opportunity."

Imposing reciprocal tariffs as early as April

Trump also threatened to impose other tariffs,all part of efforts to rebalance U.S.global trade relations.Trump has long accused other countries of exploiting the U.S.and views import tariffs as a way to bring industry back to the U.S.and generate more revenue.

Reports say Trump indicated he would impose reciprocal tariffs on each country as early as April,but specific details are still being determined.

He also threatened to impose tariffs on some of America's largest trading partners,such as the 25%tariffs already imposed on Canada and Mexico,which are at least postponed until March 4.These measures will stack up,meaning that producers in certain industries in Mexico and Canada may have to pay up to three tariffs.

Bloomberg stated that overall,if Trump's measures are implemented,they will reshape supply chains and trade flows,as well as U.S.prices.Tariffs are paid by importers and are often passed on to consumers,although they can sometimes be offset by price reductions abroad.

Intensifying tensions with North American and European trading partners

U.S.Politico previously reported that Trump's tariffs on imported cars would further exacerbate tensions between the U.S.and North America,Europe,and major trading partners.

Reports say that in 2024,the U.S.imported471 billion worth of automotive products,including214 billion worth of cars,192 billion worth of parts,and65 billion worth of trucks,buses,and other special purpose vehicles.

In terms of import value,the U.S.imports the most automotive products from Mexico,reaching about49 billion in 2024;followed by Japan at40 billion,South Korea at37 billion,Canada at28 billion,and Germany at25 billion.Currently,most cars produced in Mexico and Canada can enter the U.S.duty-free.

According to AFP,the U.S.government views tariffs not only as a potential source of revenue but also as a way to stimulate multinational companies to increase production capacity in the U.S.

Some analysts believe that multinational automotive manufacturers may announce plans to build or expand factories in the U.S.in the coming months.However,due to the volatility of U.S.policies,manufacturers face difficulties in formulating future production plans.

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