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Trump’s Auto Tariffs, Threats on Allies Intensify Trade War
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March 27, 2025
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2:30Now PlayingPresident Donald Trump signed a proclamation to implement a 25% tariff on auto imports and pledged harsher punishment on the EU and Canada if they join forces against the US, expanding a trade war and triggering threats of retaliation.
“What we’re going to be doing is a 25% tariff on all cars that are not made in the United States,” Trump said at the White House on Wednesday as he pushed ahead with a program seeking to bring more manufacturing jobs to the US.
Hours later, Trump suggested further tariffs would be imposed on the European Union and Canada if they worked together “to do economic harm” to the US. The reaction in currency markets including the euro and Canadian dollar was muted, and the S&P 500 fluctuated to start the day Thursday.
Wendy Schiller, professor of political science at Brown University, explains why Trump's trade strategy could change quickly based on past history and why it will not necessarily lead to a material boost in American manufacturing. Professor Schiller speaks with Paul Sweeney and Alix Steel on Bloomberg Radio.
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