Bloomberg Businessweek
Trump’s Auto Tariffs, Threats on Allies Intensify Trade War
Mar 27, 2025
Jennifer Dlouhy, a senior reporter at Bloomberg News, dives into President Trump's auto tariffs, emphasizing their potential to escalate tensions with allies. Stuart Paul, a US Economist, analyzes how these tariffs could impact GDP and inflation rates. Austin Walker, CEO of A. Walker & Company, explores the administration's effect on affordable housing amidst ongoing market challenges. Finally, Katie Nixon, CIO at Northern Trust, shares valuable insights on current market conditions and investment strategies in this evolving economic landscape.
44:00
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Quick takeaways
- President Trump's new 25% tariff on non-U.S. auto imports aims to boost domestic manufacturing but may exacerbate inflation and slow GDP growth.
- The evolving nature of U.S. trade policy creates uncertainty, particularly regarding tariffs as tools for negotiations with allies like Canada and Mexico.
Deep dives
Impact of Automobile Tariffs
New tariffs on automobile imports are set to escalate significantly, moving from a base of 2.5% to a potential 25% on cars not manufactured in the U.S. This change aims to boost domestic manufacturing by reshoring the entire value chain for the auto industry. Initially directed at fully assembled vehicles, these tariffs will extend to auto parts starting May 3, affecting components like engines and transmissions. The long-term goal is to encourage local production of these parts, although there are currently exemptions for U.S.-Mexico-Canada Agreement (USMCA) compliant trade.
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