According to Reuters, on October 6, Donald Trump, the Republican presidential candidate, made statements to strengthen trade protectionism ahead of the November 5 U.S. presidential election. He announced that if elected president again, he would impose tariffs of up to 200% on cars imported from Mexico.
In a heated campaign against Democratic presidential candidate Kamala Harris, Trump previously promised that if he were to win the presidency again, he would impose a 100% tariff on cars and trucks imported from Mexico to support the domestic automotive industry. However, during his latest speech at a rally at Juno Airport in Wisconsin, Trump doubled the proposed import tax rate.
Trump stated, "If necessary, the U.S. will impose a 200% tariff on cars imported from Mexico. We will not let those cars enter the United States." He pledged that this tariff would revitalize the American automotive industry. However, experts have indicated that Trump's plan could lead to an increase in car prices. In 2023, Mexico exported approximately 3 million cars to the U.S., with the "Big Three" automakers from Detroit accounting for about half of that.
The Tax Policy Center, a think tank, stated that imposing high new tariffs on cars imported from Mexico could raise the costs of automobiles in the U.S., affecting both domestic and imported vehicles, as well as used and new cars.
Trump had previously threatened to impose high tariffs on cars imported from Mexico during his 2016 campaign, and he acted on this during his presidency in 2019. At that time, automakers indicated that imposing tariffs of up to 25% on cars and parts imported from Mexico could severely impact the American automotive industry and drive up car costs.
