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April 03, 2025
As part of the broad suite of tariffs that he imposed on April 2, US President Donald Trump introduced a 25% levy on all auto parts entering the United States.
No matter the part, US automakers import huge amounts of each vehicle from abroad. The United States, for example, purchased $3.3 billion worth of brakes from Mexico and $2.8 billion of silencers and exhausts from Japan last year.
This chart excludes some of the mechanics of a car, such as engines, many of which are also imported from abroad. In fact, not a single car currently available in the US domestic market is 100% American-made, according to the National Highway Traffic Safety Administration. So, unless US parts manufacturers can plug the gaps, car companies are on the road to higher production costs.More For You
Tune in on Saturday, February 14th at 12pm ET/6pm CET for the live premiere of our Global Stage from the 2026 Munich Security Conference, where our panel of experts takes aim at the latest global security challenges.
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At the Munich Security Conference, the mood is clear: Europe no longer assumes the United States will lead. In this Quick Take, Ian Bremmer reports from Munich, where this year’s theme, “Under Destruction,” reflects growing anxiety that the US itself is destabilizing the transatlantic alliance it once anchored.
Every year, the Munich Security Conference, the world’s leading forum on international security, releases data that sheds light on how citizens view global risks.
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