Trump plans broad reciprocal tariffs, warns of rising prices

President Donald Trump announced that the reciprocal tariffs he plans to unveil Wednesday will apply to all nations.

(CNN)- President Donald Trump announced that the reciprocal tariffs he plans to unveil Wednesday will apply to all nations, expanding beyond the previous focus on countries with the largest trade deficits. This announcement comes after Treasury Secretary’s earlier remarks suggesting that the tariffs would target countries with significant trade imbalances. Trump also emphasized that any trade deal related to the tariffs would only come after they are implemented. He added that the new tariffs would be “far more generous than those countries were to us.”

As tariffs on imported vehicles are set to begin Thursday, U.S. consumers can expect price increases. Industry experts, like Brian Moody, Executive Editor of Kelley Blue Book, predict that car prices could rise by a few thousand dollars, depending on the brand and model. Despite these potential price hikes, Trump said he “couldn’t care less” if car prices rise, so long as it results in more manufacturing moving to the U.S. However, analysts warn that a major shift in the supply chain could take years, and in the meantime, U.S. companies would bear the cost of the tariffs.

Economists argue that these tariff measures could have broader economic consequences, potentially raising prices for consumers. Michael Froman, President of the Council on Foreign Relations, warned that the laws of economics cannot be ignored by executive orders, likening it to the unalterable laws of gravity. Experts predict that beyond the auto tariffs, Trump’s other tariff measures could also drive up prices and reduce consumer demand.