Trump vows to increase tariff on imported vehicles by 200% to protect US carmakers

Donald Trump, United States (US) Republican presidential candidate, says he would raise tariffs on vehicles by 200 percent to prevent the importation of cars from Mexico.

Trump spoke in an interview aired on Fox News on Sunday.

Although the Republican presidential candidate specifically mentioned Mexico, the top exporter to the US in 2023, the policy could affect other countries, including Saudi Arabia, Australia, the United Arab Emirates (UAE), and China.

According to data from the Observatory of Economic Complexity, the US in 2022, imported cars valued at $159 billion mainly from Mexico ($34.1 billion), Japan ($32.9 billion), Canada ($27 billion), South Korea ($22.5 billion), and Germany ($17 billion).

Speaking during the interview, Trump said his intention to block the sale of Mexican-made cars in the US is part of his effort to protect America’s auto industry.

“All I’m doing is saying I’ll put 200 or 500, I don’t care. I’ll put a number where they can’t sell one car. I don’t want them hurting our car companies,” the presidential candidate said.

“When I use 200 I’m using it as a number. I don’t want their car.

“They will not be able to sell cars. I’m not going to let them build a factory right across the border and sell millions of cars into the United States and destroy Detroit further.”

Trump said the US had lost about 70 percent of its car production over the years.

He vowed to reverse the trend by encouraging companies to return to the country and set up operations in states like Michigan, South Carolina, and Tennessee.

“We’re going to bring back those companies, and I’ll tell you what, they’re going to come back fast but we’re not going to let them sell cars from a nice new factory, owned by China, located in Mexico,” he said.