Donald Trump doubles down on Mexican car import tariffs

Republican US presidential candidate Donald Trump has vowed to impose huge tariffs on Mexican-made vehicles sold north of the border should he win next month’s presidential election.

Reuters reports the former president was speaking at a rally in Wisconsin when he announced vehicles built in Mexico and sold in the US could be slugged with tariffs as high as 200 per cent – making them virtually financially unviable.

“We’ll put a tariff of 200 per cent on [Mexican vehicles] if we have to,” Mr Trump said.

“We’re not going to let it happen. We’re not letting those cars come into the United States.”

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Mr Trump has said in recent months that he’d impose a 50 per cent – then later a 100 per cent tariff – on vehicles made in Mexico if reelected, in a bid to secure votes from automotive workers whose jobs are perceived to be at risk.

Popular US vehicles currently made in Mexico include the Chevrolet Silverado 1500 (Regular/single cab), the Toyota Tacoma, Volkswagen Tiguan and BMW 3 Series, to name a few.

When Mr Trump was president between 2017 and 2020, he threatened tariffs of up to 25 per cent on Mexican vehicles, though these never came to fruition.

In 2018, he was one of three leaders to sign the United States–Mexico–Canada Agreement for free trade between the nations.

The former president has made the automotive industry a major focus of his reelection campaign, firing up at the United Auto Workers (UAW) union in July for their role in letting carmakers build vehicles south of the border.

“Large factories are being built across the border in Mexico, so with all the other things happening at our border. They are being built by China to make cars and sell into our country with no tax or anything,” he said.

“The United Auto Workers ought to be ashamed for allowing this to happen and the leader of the UAW [Shawn Fain] should be fired immediately.

“We are going to bring back car manufacturing and we are going to bring it back fast.”

Mr Trump has also been on an anti-electric vehicle (EV) run throughout his campaign, despite being endorsed by Tesla CEO Elon Musk.

In the US, EVs are eligible for federal tax credits of up to US$7500 (A$11,100) presently, though under incumbent President Joe Biden’s administration, stricter requirements around vehicle and battery sourcing have been introduced.

President Biden also announced a 100 per cent tariff on Chinese EVs in May.

Democratic presidential nominee and current Vice President Kamala Harris has received the support of the UAW, which could help her win the state of Michigan – a state crucial to her chances of winning the White House.

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