Trump threatens a 200% tariff on vehicles imported from Mexico

Republican U.S. presidential candidate Donald Trump escalated his trade rhetoric on Sunday, vowing to impose tariffs as high as 200% on vehicles imported from Mexico. Speaking at a rally in Juneau, Wisconsin, Trump warned of tough measures to protect the U.S. auto industry if re-elected, doubling his previous proposal of a 100% tariff. He emphasized that he would prevent foreign-made cars from flooding the U.S. market.

Trump's stance on trade and protectionism has been a central theme of his campaign, with Wisconsin—a critical swing state—being a key battleground. Recent polls indicate that Vice President Kamala Harris, the Democratic candidate, holds a slight lead in Wisconsin, a state that voted for President Joe Biden in 2020 after supporting Trump in 2016.

Both candidates are focusing heavily on swing states such as Wisconsin, Michigan, and Pennsylvania, which are crucial to securing the electoral college. Harris has been actively campaigning in Wisconsin, recently appearing with former Republican congresswoman Liz Cheney.

Trump’s tariff proposal could have significant economic consequences, particularly for the automotive industry. Mexico exported around 3 million vehicles to the U.S. in 2023, with the Detroit automakers accounting for a substantial portion of those exports. Experts caution that such tariffs could drive up vehicle prices, affecting both imports and domestic cars. The Tax Policy Center highlighted that large tariffs would likely increase the cost of all motor vehicles, including used cars.

Trump also used the rally to criticize the Biden administration's response to Hurricane Helene, which recently devastated parts of the southeastern U.S., resulting in 227 deaths. He labeled the response the worst in history, although his claims were not backed by evidence. Federal Emergency Management Agency (FEMA) administrator Deanne Criswell defended the government's efforts earlier on Sunday, assuring the public that FEMA has sufficient resources for recovery operations and dismissing allegations of diverted funds as "ridiculous and false."