Trump announces a 25 % tariff on auto imports

US President Donald Trump has announced 25 % new trade taxes on cars that are imported to the United States.

Trump said the latest definitions will enter into force on April 2, with groups starting the next day.

He claimed that the procedure would lead to a “tremendous growth” of the auto industry, and promised that he would stimulate jobs and investment in the United States.

But analysts said this step is likely to cause a major disturbance in cars production, increase prices, and stress relations with allies.

Mexico is the best foreign resource for cars to the United States, followed by South Korea, Japan, Canada and Germany.

Many American car companies have operations in Mexico and Canada as well, created under the terms of the long free trade agreement between the three countries. It is not clear the impact of definitions on auto parts that are sent across the border to manufacturing factories.

The shares in General Motors fell almost 3 % on Wednesday, as the White House said it was planning to advertise. The sale process spread to other companies, including Ford, after the president’s statements while signing the executive order.

He was asked at a press conference if there was any opportunity to save the path, Trump said no.

“This is permanent,” he said, adding: “But if you build your car in the United States, there is no tariff.”

The new import taxes are scheduled to enter into force on the same day, such as the so -called “mutual definitions” of individual countries based on their commercial relationship with the United States.

European Commission President Ursula von der Lin said that the bloc will study the latest advertisement, in addition to the other definitions that Trump promised to reveal in the coming days.

“As I said before, the customs tariffs are taxes – bad for companies, and worse for consumers equally in the United States and the European Union,” she said.

“The European Union will continue to search for negotiation solutions, while protecting its economic interests.”

The introduction of definitions on a group of goods that are imported into the United States is part of Trump’s efforts to protect American companies and increase manufacturing.

The tariff is a tax on imports gathered by the government and is paid by the company that imports good.

But in protecting local companies, consumer prices can rise if the company that imports goods from abroad goes with higher costs, rather than absorbing them or reducing imports.

In recent weeks, US car manufacturers, including General Motors and Ford, have called on the US President to exempt car imports and vehicle parts from definitions.

But Trump continued this step, a revival of the procedure that he considered for the first time during his first term in the White House.

A study conducted by the Ministry of Commerce at the time warned that the American share of global cars production has decreased dramatically, decreasing from 26 % in 1985 to only 12 % by 2017, while he argued that was a danger to national security.