US President Donald Trump said he is placing 25 percent tariffs on all US auto imports as of April 2 and is expecting revenue of $100 billion USD from them.

The White House claimed the move will foster domestic manufacturing.

“This will continue to spur growth,” Trump said. “We’ll effectively be charging a 25 percent tariff.”

This could also put a financial squeeze on automakers that depend on global supply chains.

The tax hike plans could also be troublesome as US manufacturers source their components globally, which could have them face higher costs and lower sales.

The tariffs on auto imports have been a defining policy of Trump’s presidency, with a stated aim of these taxes to boost US production.

“We’re going to be doing automobiles, which you’ve known about for a long time,” Trump said. “We’ll be announcing that fairly soon, over the next few days probably.”

The President said it will be the end of what he judges to be a “ridiculous” supply chain, with auto parts and finished vehicles manufactured across the US, Canada and Mexico.

After Trump’s announcement, shares in General Motors fell roughly 3 percent while Ford’s went up slightly. Shares in Stellantis, the owner of Jeep and Chrysler, have dropped by nearly 4 percent.

Canadian Prime Minister Mark Carney announced this morning that he would hold a high-level Cabinet meeting on March 27 local time to decide a response after Trump’s “direct attack” on the country.

Photo: Final Assembly 2 by Brian Snelson found HERE and used under a Creative Commons license. This image has not been modified.