President Donald Trump announced plans to impose a 25 percent tariff on imported automobiles and auto parts, betting that consumers will accept higher prices in return for the promise of regaining lost manufacturing jobs. Speaking in the Oval Office, Trump stated he was acting to encourage the return of auto manufacturing to the United States, predicting tremendous growth in the industry and significant new tax revenue for the U.S. Treasury. Vehicles meeting the duty-free requirements of the United States-Mexico-Canada trade agreement will be taxed only on the non-U.S. portion of their components. The government will begin collecting the new import taxes at 12:01 a.m. on April 3, with the total charge being 27.5 percent when added to an existing 2.5 percent levy. Trump’s decision to raise taxes on imported vehicles challenges an industry increasingly dependent on cross-border commerce. Many business groups criticized the tariffs, warning of irreparable harm to the auto industry. Shares of General Motors and Stellantis fell more than 3 percent on Wall Street following the announcement. Trump also mentioned considering lowering tariffs on Chinese imports if China helps sell TikTok to a U.S. owner. — news from The Washington Post