The Republican Party’s presidential candidate in the United States (US) election, Donald Trump, has said that he would raise tariffs on vehicles by 200 percent to prevent the importation of cars from Mexico and to protect US carmakers.
Speaking in an interview aired on Fox News on Sunday, though Trump 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.
Data from the Observatory of Economic Complexity shows that in 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).
During the interview, the former president 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.
He said, “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.
“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.
The presidential candidate said, “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.
Trump had previously pledged that if elected again as president, he would set a 100 percent duty on imported cars and trucks.
He said the only way to eliminate the tariff would be for Mexico to establish a manufacturing plant in the US, operated by Americans.
Trump is currently seeking a return to the White House and is running against Harris Kamala, the Vice-President and Democratic Party candidate.
