Trump To Announce Auto Tariffs, Expanding Trade War

President Donald Trump is preparing to order a new import tax on foreign-made cars in an escalation of his tariff-based trade policies that have shaken up the economy in recent weeks.

Trump was scheduled to announce the tariffs Wednesday afternoon, White House Press Secretary Caroline Leavitt told reporters Wednesday. As of 5 p.m., details about the new import tax, including how high it was, when it would start, and what countries it would affect had yet to be announced.

The tariffs are likely to push up prices for the products targeted, since merchants usually pass import taxes on to consumers, economists have warned. Depending on how they are implemented, tariffs could push the average cost of a new car up by as much as $10,000, according to an analysis by Anderson Economic Group, CBS reported.

The auto levies are a significant acceleration of Trump’s ongoing campaign of raising tariffs against U.S. trading partners. The tariffs, and uncertainty over the details of them, have tanked measures of consumer confidence, stoked fears of a recession and high inflation, and sent financial markets into turmoil in recent weeks. Trump has said he will announce more tariffs April 2, when he plans to raise U.S. tariffs to match import taxes charged by foreign countries on U.S. products.

Trump has said the tariffs are aimed at bolstering U.S. manufacturing by shielding domestic industry from foreign competition.