Hi HODLers, Hiveans and Lions,
As usual, Trump just announced a new tariff sets to be implemented in the near future. This one is on cars not made in the US.
“What we’re going to be doing is a 25% tariff on all cars not made in the U.S.,”
I don't know if he is trying to bail out his friend Elon Musk but this seems quite extreme. In particular because US does not produce enough car on its own territory to fulfill demand and they have been signing agreements over the years with Canada and Mexico to build plants there for US or Japanese companies in order to supply the US Market.
These plants have been built because of tax agreement between the US and these countries to have almost 0 import tax!
The U.S. will start collecting the auto tariffs on April 3, Trump said, the day after he is slated to announce a broader slate of trade actions. Trump’s so-called reciprocal tariffs, slated for that day, were originally planned to equalize U.S. tariffs with those charged by foreign nations, but Trump said Wednesday that the tariffs he plans to implement would likely be lower than that.
I was one to believe most of these tariffs will never be implemented but when you announce this today and say it will most likely be implemented in a week! What the heck. You don't even have time to scrap it!
I believe we did not need that extra volatility but it is what it is! Let's deal with it.
Stay safe out there,