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Former President Donald Trump has threatened to impose tariffs as high as 25% on foreign cars and semiconductor chips, following warnings that such actions could destabilize the U.S. economy. During a press conference on February 18, 2025, Trump reiterated his administration's intention to reconfigure the global economic landscape in favor of the United States, claiming an announcement on the exact tariff rates would come on April 2.
Despite announcing these potential tariffs, many have yet to be implemented, provoking concern among economists and business leaders about the potential fallout. For example, tariffs on imports from neighboring Canada and Mexico have been delayed multiple times. Jim Farley, CEO of Ford, emphasized the tariffs could severely damage U.S. industry, stating at an investor conference, “A 25% tariff on Mexico and Canada will blow a hole in the US industry that we have never seen.”
Tariffs, which are paid by U.S. importers rather than exporters, are part of Trump's broader strategy to encourage foreign manufacturers to establish production facilities within the U.S.