Trump Threatens 15% to 30% Tariffs on Cars

Summary

Trump has threatened to impose a 15% to 30% tariff on automobiles.Zhitong This follows a recent meeting he had with auto workers in late JanuaryMace News and a move last month to increase tariffs on South Korean cars from 15% to 25% due to a dispute over a trade agreement. Trump has previously claimed that his tariff policies have successfully reduced the U.S. trade deficit.MSN

Impact Analysis

This isn’t just noise; it’s the classic Trump playbook. He’s making a credible threat, especially after he just hiked tariffs on South Korean autos last month for similar reasons. The timing, right after meeting with auto workers, shows this is a political move to protect a key base.Mace News A 15-30% tariff would be a gut punch to foreign automakers like Toyota, VW, and Hyundai, forcing them to either sacrifice margins or raise prices and lose market share.

While it seems like a win for Detroit, it’s a double-edged sword. Retaliatory tariffs are a near certainty, hitting US exports. Plus, their own supply chains are global and would face cost pressures. The market is underestimating the risk of a broader trade war here. The cleanest trade is shorting foreign OEMs with high US exposure. It also adds to the case for holding gold as a hedge against escalating trade conflicts.