(By Guancha Observer Network / Zhang Jiadong, Edited by Gao Xin)

On June 12 local time, Trump claimed that the United States was planning to increase auto tariffs in the near future to encourage automakers to accelerate investment in the U.S.

Bloomberg News

Trump mentioned this during a ceremony for signing a piece of legislation, stating that more than 25% auto tariffs could provide further protection for the U.S. auto industry. "In the near future, I may increase tariffs. The higher the tariff, the greater the possibility that they (foreign carmakers) will build factories here."

This statement also came after Trump raised steel and aluminum tariffs to double at 50% last week. Prior to this, major auto-exporting countries such as Japan and Germany were negotiating to resolve U.S. auto tariffs, claiming that these taxes might have a significant impact on important industries.

Meanwhile, the three major U.S. automakers have been pressuring the White House to reduce auto tariffs. These companies also criticized Trump's agreement with the British government to reduce import tariffs on British cars, but Trump has not made any concessions regarding cars produced in Canada and Mexico.

However, Trump seemed unconcerned about this. He listed a series of recent investment announcements, including General Motors' announcement this week to invest $4 billion (approximately RMB 28.71 billion) in building three factories in the U.S., transferring some SUV production from Mexico to the U.S.; as well as Hyundai's announcement in March of a $21 billion (approximately RMB 150.75 billion) investment.

Trump spoke about raising auto tariffs Reuters

Trump said, "If we hadn't imposed tariffs, they wouldn't even invest one dime."

Compared to Trump viewing tariffs as a means to attract investment, auto parts manufacturers and automakers are increasingly feeling the pressure of rising costs.

In recent weeks, both Ford and Subaru have faced cost pressures due to rising tariffs in the U.S. market. Ford has already raised prices on some models. In May this year, Ford estimated that tariffs would result in an approximate loss of $1.5 billion in adjusted profit.

GM stated last month that its current estimate of the cost risk from tariffs is between $4 billion and $5 billion (approximately RMB 28.71 billion to RMB 35.89 billion), including Chevrolet and Buick cars imported from South Korea.

While announcing the tariffs, Trump also signed an order at the White House to revoke California's clean air policy, which terminates California's regulation banning the sale of gasoline-powered vehicles by 2035.

Trump signed the order on June 12 local time Automotive News Europe

Trump said, "We have completely terminated California's mandatory electric vehicle order, officially saving the U.S. automotive industry from dire straits."

This also led 11 states, led by California, to file a lawsuit on the same day, questioning Congress' repeal of California's 2035 electric vehicle regulations. Environmental advocates stated, "The Trump administration's attacks on clean energy and clean vehicles will only benefit the fossil fuel industry and impose higher fuel costs, limited vehicle choices, and more pollution on Americans."

This article is an exclusive contribution by the Guancha Observer Network and cannot be reproduced without permission.

Original source: https://www.toutiao.com/article/7515353602547597861/

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