Trump's Bold Tariff Strategy: Reviving U.S. Manufacturing?

President Trump announced a 25% tariff on auto imports, aiming to boost domestic manufacturing. The tariff could increase vehicle prices, affecting middle-class buyers. Trump proposes tax deductions for U.S.-made vehicles to offset costs. This move is part of a larger strategy to reshape global trade relations.

President Donald Trump has unveiled a 25% tariff on auto imports, a strategy aimed at strengthening U.S. manufacturing. However, the policy may pose challenges, given many automakers' reliance on global supply chains.

While the tariffs are anticipated to generate $100 billion annually, concerns are rising about their impact on vehicle costs and sales. Economists suggest this increase could disproportionately affect the middle class by driving up auto prices.

Simultaneously, Trump seeks to incentivize American-made vehicle purchases by allowing tax deductions on auto loan interest. This initiative is part of an extensive plan to recalibrate international trade relations and reduce the budget deficit.

(With inputs from agencies.)