The prices come as experts warn that this could in fact affect the American automotive industry, because even American car manufacturers get their components from around the world, which could face higher costs and higher sales.
US President Donald Trump said on Wednesday that he placed 25% prices on automotive imports, a decision that, according to the White House, would promote national manufacturing, but could also put financial pressure to car manufacturers that depend on world supply chains.
“It's permanent,” said Trump, highlighting his seriousness about the tariff directive. He added that the vehicle prices would begin to be collected on April 3.
The prices come as observers and experts warn that this could in fact affect the American automotive industry, because even American car manufacturers get their components from around the world, which means that they could face higher costs and higher sales.
Some of the projections estimate that the likely average price of an imported car could increase by $ 12,500 if taxes are fully transmitted to the buyer, which could contribute to general inflation.
In the first reaction to Trump's announcement, General Motors' shares plunged around 3% Wednesday afternoon while Stellantis, owner of Jeep and Chrysler, dropped by almost 4%. Ford's stock was slightly up.
Leyen reacts
In Brussels, the president of the European Commission Ursula von der Leyen expressed her regret in the American decision to target European automobile exports and judged that the block would protect consumers and businesses.
“Prices are taxes-bad for businesses, worse for consumers also in the United States and the European Union,” she said in a statement, adding that EU's executive power would assess the impact of the decision, as well as other American rates scheduled for the next few days.
Trump has long declared that he would impose prices for automotive imports as a brand brand of his presidency, hoping that the price of taxes increased, more manufacturing would move to the United States and that the budget deficit would be reduced.
However, American and international car manufacturers already have factories around the world to meet the demand of customers around the world while keeping competitive prices.
It is to be feared that he will make companies years to plan, build and launch the additional factories that Trump offers.
Canada calls for the direct attack on Trump automotive prices.
Meanwhile, Canadian Prime Minister Mark Carney says he has to see the details of Trump's decree before taking reprisals.
He called him unjustified and said he would leave the electoral campaign to go to Ottawa on Thursday to chair his special committee of the Cabinet on American Relations.
Earlier, Carney announced a “strategic response fund” of turnover of 2 billion dollars ($ 1.4 billion) which will protect Canadian automobile jobs affected by Trump prices.
Motor cars are Canada's second export, and Carney noted that it directly employs 125,000 Canadians and almost 500,000 others in related industries.
Carney says he is appropriate for him and Trump to speak on the phone. The two have not spoken since Carney was sworn in on March 14.
