Trump announces a 25% tariff on imported vehicles

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In the Oval Office on Wednesday, President Trump announced a 25% tariff on imported vehicles. Hear what he had to say in the video above.

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00:00 Donald Trump

So we'll effectively be charging a 25% tariff, but if you build your car in the United States, there is no tariff. And what that means is a lot of foreign car companies, a lot of companies are going to be in great shape because they've already built their plant, but their plants are underutilized. So they'll be able to expand them inexpensively and quickly. But others will come into our country and build, and they're already looking for sites. Uh, they're looking for mostly sites, they don't want to take the old buildings that are empty and falling down. They want to build new. It's off to the races. I think our automobile business will flourish like it's never flourished before. Yes, please. Will.

01:33 Speaker A

Thank you, sir. As you stated, we've prepared for your attention a proclamation imposing a 25% tariff on foreign-made cars and light trucks. This is in addition to tariffs that are already in place on those goods. Uh, in addition to, as you said, spurring, uh, increased domestic manufacturer of cars and trucks, we expect that, uh, these tariffs will result in over 100 billion dollars of new annual revenue to the United States of America in, in tariff revenue.

02:37 Donald Trump

I think ultimately we could probably anywhere from 600 billion to a trillion dollars will be, uh, taken in over the relatively short-term period, meaning a year from now. Uh, but starting right away, starting right away. I think we'll go from 600 to a trillion within two years. And I think we'll be very, I mean right from the beginning, we're going to be at a very high number.