A major component of President Donald Trump’s economic policy involves imposing tariffs to even out the nation’s trade imbalance.
While the strategy has been met with some resistance from critics across the political spectrum, just the threat of tariffs appears to have already begun to have the desired effect.
According to Breitbart, two major automakers are planning to increase their manufacturing in the United States in order to avoid the additional export costs:
Hyundai Motor and Kia aim to boost American automobile production to avoid President Donald Trump’s planned 25 percent auto tariff, according to a report.
Trump on Tuesday said the tariff rates on auto imports will be “in the neighborhood of 25 percent,” with more details to come in early April.
He noted that he will give auto manufacturers time to avoid the tariff.
“If they have a plant and factory here, there will be no tariff,” the 47th president remarked.
Both automakers aim to boost domestic production of vehicles by 70 percent with the use of their massive plant in Georgia, which will open in March.
The development struck many Americans as a sign that Trump is on the right track:
Look at that. Hyundai and Kia to ramp up US-based production in response to Trump’s tariffs. That means more work in US communities. https://t.co/ENWYHLOzCD
— Brandon Darby (@brandondarby) February 20, 2025
That means more US jobs, which is the point of Trump's tariff strategy the left hates so much…
Hyundai, Kia Plan to Boost American Auto Production to Avoid Trump Tariffs https://t.co/1vDLYWCoMt via @BreitbartNews
— Jon Tarr (@JonTarr17) February 20, 2025
For his part, Trump has endorsed what he calls “reciprocal tariffs,” meaning that the U.S. would charge other nations based on what they respectively impose on America.
🚨 President Trump to impose reciprocal tariffs on unfair trading practices! "No more ransacking of our nation." #AmericaFirst #TradeWar #Tariffs #DreamTeamUSA pic.twitter.com/3O770r8tmC
— Sarahi Phillips (@sarahi_phi65718) February 20, 2025
Newly confirmed Commerce Secretary Howard Lutnick elaborated on Trump’s tariff plan during a recent interview, as the New York Post reported:
“His goal is to abolish the Internal Revenue Service and let all the outsiders pay,” Commerce Secretary Howard Lutnick said Wednesday on “Jesse Watters Primetime.”
“As the president said, reciprocal tariffs, either you bring yours down or we’re going to bring ours up. If we go to their level, it will earn us $700 billion a year to be equal to everybody else,” he expanded Thursday on “America’s Newsroom.”
“And there goes our deficit. And interest rates come smashing down, and the whole economy explodes higher.”
Here’s a clip of his recent remarks on the topic:
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