The American president continues his commercial offensive. Donald Trump announced on Wednesday that he would impose customs duties of 25 % on “all cars that are not made in the United States”. After steel and aluminum, and pending construction wood or copper, the American president therefore adds a new sector of activity to his list. The European Union reacted, saying to “deeply” regret this decision.
“We are going to charge the countries that do business in our country and take our wealth (…) What we are going to do is customs duties of 25 % on all cars that are not made in the United States. If they are manufactured in the United States, there will be absolutely no customs duties, “said US President from the White House. “This is added to the already existing customs duties on these goods,” said an advisor.
Commercial and diplomatic weapon
These new customs duties will come into force on April 2, at the same time as “reciprocal” customs duties that the American president has declared against several countries including China, Canada and European countries. These new customs duties on cars will be “permanent” said the American president. “We will start collecting them (These taxes on imported cars) The 3, “he said.
The principle of “reciprocal” customs duties is that products from a country and entering the United States will now be taxed at the same level as are the American products exported to said country. But if he had first said that there would be “no exemption or exception”, Donald Trump assured Wednesday that these new taxes would be “very mild”. “This will concern all countries and we will make sure that they are very mild. I think people will be very surprised, “he added.
The so far applied rate was 2.5 %. This means that imported cars will now be taxed at 27.5 % of their value. In the case of Chinese electric cars, already taxed 100 % since August 2024, this will bring customs duties to 125 %. This is a new blow for the automotive sector, which has already been shaken by previous announcements in the matter.
In early February, the announcement of 25 % customs duties on Canadian and Mexican products had already shaken the sector, while the production chain of the main American car manufacturers is largely integrated between the three North American countries. Their postponement, until April 2, had then constituted relief for industry, before those imposed this time on steel and aluminum, effective since mid-March, come to restore it. Almost half of the steel and aluminum consumed by the American industries is indeed imported.
American manufacturers have factories abroad that feed the American market, mainly in Canada and Mexico. Ford, for example, imports one of his vans from Turkey. According to the site of this manufacturer, around 20 % of its vehicles sold in the United States are imported, but a number of parts of vehicles assembled in the United States also come from Canada or Mexico.
General Motors imports approximately 750,000 vehicles from Canada and Mexico annually, making it the first importer, all car manufacturers combined.
Wood and copper sectors in the viewfinder
If he had not imposed customs duties on the automobile during his first mandate, Donald Trump had asked the White House representative for trade (USTR) to launch an investigation into the subject, who was finalized in 2019. According to Ryan Majerus, a former official of the American Ministry of Commerce, it was on the basis of this investigation that President Trump decided to set up this new tax on imported cars.
“The advantage of the automobile is that they can go much faster if they wish, compared to other sectors such as construction wood or copper, where investigations have just been launched,” Ryan Majerus, now a member of the King & Spalding, told AFP. The White House wants to tax these two other business sectors, but that may not intervene before the end of the year.
The tenant of the White House has made customs duties a weapon that is both commercial and diplomatic, using it to request accounts from the United States partners on various subjects of disagreement. For example, he threatened Canada and Mexico to increase them if these two countries did not implement more means to combat fentanyl traffic, a drug that wreaked havoc in the United States. On Wednesday evening, Donald Trump said he was ready to make customs concessions in Beijing in exchange for an agreement on Tiktok.