US President Donald Trump’s plan to restore American carmaking by imposing tariffs on imported goods is facing criticism. On March 26th, he announced that he would charge hefty levies on imported cars and parts. The aim is to boost local production and create jobs. However, industry experts warn that this approach may not be as effective as claimed.
Higher prices for consumers are expected, which could reduce demand for American-made vehicles. Additionally, the tariffs may lead to reduced choice for car buyers, ultimately affecting sales. On the other hand, domestic automakers will benefit from higher profits due to reduced competition from imported goods.
Critics argue that this plan is a moral failure and may harm businesses in the long run. For instance, big law firms have already shown signs of capitulation to Trump’s demands, potentially affecting their competitiveness.
As Europe-based chip manufacturer ASML notes, its boss warns that if European champions fail to protect their interests, they could move production elsewhere. This highlights the potential risks and consequences of Trump’s tariff policy on the global automotive industry.
Source: https://www.economist.com/business/2025/03/31/donald-trumps-plan-for-american-carmaking-is-full-of-potholes