Former President Donald Trump said on Tuesday that he would impose 100% tariffs on every car imported into the U.S. from Mexico if elected President in the upcoming Nov. 5 elections.
What Happened: “We will put a 100% tariff on every single car coming across the Mexican border. The only way they'll get rid of that tariff is if they want to build a plant right here in the United States, with you people operating that plant.” Trump said while addressing a rally in Savannah, Georgia.
Automakers including Ford Motor Co, Chrysler parent Stellantis NV, and General Motors currently produce cars in Mexico. EV giant Tesla Inc was also considering putting up a factory in Mexico but paused it citing possible changes in policy and tariffs after the elections.
Why It Matters: Last week, Trump pledged to impose 200% tariffs on vehicles manufactured by Chinese automakers in Mexico and imported into the U.S.
Trump's tariff proposals have been a recurring theme in his campaign. He has previously said that imposing high tariffs on products made outside the country will force companies to manufacture within the U.S., thereby increasing jobs in the country.
However, critics have pointed out that heightened tariffs will only be passed down to U.S. consumers and won’t be borne by manufacturers.
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