US to impose 25% tariffs on all foreign-made automobiles: Donald Trump

Very few exports headed to the US faced higher duties

U.S. President Donald Trump appeared at the White House Rose Garden on Wednesday for a "Liberation Day" ceremony. Trump announced sweeping 'reciprocal' tariffs to promote US manufacturing, raising risks of higher costs and trade wars.

“Let me offer just a few examples of the vicious attacks our workers have faced for so many years. The United States charges other countries only a 2.4 per cent tariff on motorcycles. Meanwhile, Thailand and others charge much higher rates, like 60 per cent. India charges 70 per cent, Vietnam charges 75 per cent, and others are even higher than that.

“Likewise, until today, the United States has for decades charged a 2.5 per cent tariff. Think of that – 2.5 per cent on foreign-made automobiles. The European Union charges us more than 10 per cent tariffs…. India charges 70 per cent and perhaps worst of all are the non-monetary restrictions imposed by South Korea, Japan, and very many other nations,” he said.

"That's why, effective at midnight, we will impose a 25% tariff on all foreign- made automobiles," Trump said, reiterating an earlier annoucement.

"We subsidize a lot of countries and keep them going and keep them in business," Trump said about trade partners, specifically Mexico and Canada. "Why are we doing this? I mean, at what point do we say you got to work for yourselves."

"This is why we have the big deficits. This is why we have that, amount of debt that's been placed on our heads over the last number of years, and we're really not taking it anymore."

"In the face of unrelenting economic warfare, the United States can no longer continue with a policy of unilateral economic surrender. We cannot pay the deficits of Canada, Mexico and so many other countries. We used to do it. We can't do it anymore. We take care of countries all over the world. We pay for their military. We pay for everything they have to pay. And then when you want to cut back a little bit, they get upset that you're not taking care of them any longer. But we have to take care of our people and we're going to take care of our people first. And I'm sorry to say that."

The sweeping duties would erect new barriers around the world's largest consumer economy, reversing decades of trade liberalization that have shaped the global order. Trading partners are expected to respond with countermeasures of their own that could lead to dramatically higher prices for everything from bicycles to wine.

"It's our declaration of independence," Trump said at an event in the White House Rose Garden.

The uncertainty has rattled financial markets and businesses that have relied on trading arrangements that have been in place since 1947.