Automotive: Why Trump's tax cuts will be insufficient for manufacturers

To celebrate his 100 days in office, Donald Trump wanted to give automakers a gift. The 25% tariffs imposed in early April on vehicles and parts imported into the United States will not be cumulative. At least for a period of two years, the American president announced in Warren, Michigan, near Detroit, the stronghold of the Big Three—Ford, General Motors, and Chrysler (Stellantis). " We simply want to help them during this transition period. Short term ," the president declared before leaving for Warren. "If they can't get parts, we don't want to penalize them ," he added.

Since April 3, manufacturers from around the world who sell their imported cars, pickup trucks, and vans in the United States have been taxed at 25%, whether the vehicles and parts come from Japan, Korea, Europe, or even Mexico and Canada, two countries linked to the United States by a free trade agreement...