On March 26, President Trump announced 25% tariffs on imported automobiles, light trucks and key parts (such as engines and electrical components), and said they’ll be permanent. Trump expects the move to raise $100 billion in annual revenue and spur domestic auto manufacturing. U.S. auto manufacturers will be affected because they source parts from other countries. Trump indicated that he’d like to provide a federal income tax break to car buyers for auto loan interest on purchases of vehicles made in the United States. The lost tax revenue from that break would be offset by some of the revenue generated by the tariffs. The collection of tariffs on autos is set to begin April 3. Stay tuned.
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