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White House: Trump to hold Wednesday press conference on auto tariffs

At a Wednesday press conference, U.S. president Donald Trump will reveal plans to implement long-promised duties on automobile imports. This move will intensify the global trade conflict Trump started upon regaining control of the White House in this year.

The White House did not provide any details about the anticipated tariffs. This includes whether or not there will be carveouts made for parts and vehicles produced under the U.S. Canada-Mexico Agreement. This regional trade agreement was negotiated by Trump during his first term, which allows for largely free trade with two of the largest U.S. trade partners.

Trump has himself suggested that tariffs may be as high as "in the vicinity of 25%."

Trump said Monday that tariffs could be imposed on imported cars this week. This is ahead of plans for reciprocal tariffs to be announced next week against the countries responsible the majority of the U.S. Trade deficit. Trump and his advisers on economics have promised that they will announce these levies and perhaps some additional sectoral duties, on April 2.

Former U.S. officials and industry experts expect that the administration will use an investigation Trump conducted during his first term to justify the new taxes.

The news of the presser sent shares of U.S. listed automakers tumbling on fears that tariffs could send shockwaves through an auto industry already reeling under uncertainty due to Trump's rapid-fire threats of tariffs and his occasional reversals.

According to the Center for Automotive Research, tariffs could increase the cost of cars for consumers by thousands, affecting new vehicle sales, and result in job loss, as the U.S. auto industry is heavily dependent on imported parts.

In 2024, the U.S. will import $474 billion in automotive products, including $220 billion worth of passenger cars. Mexico, Japan South Korea Canada and Germany were all close U.S. Allies.

Cox Automotive, a provider of automotive services, forecasted on Wednesday that, if no tariff carveouts are granted to the auto industry, the price of an American-made vehicle would increase by $3,000 and the cost for a vehicle from Canada or Mexico by $6,000 if the tariffs were not waived. (Reporting from Doina and David Lawder, both in Washington; Additional reporting from Kalea in Detroit; Writing by Dan Burns, Editing by Matthew Lewis.)

(source: Reuters)