Despite President Donald Trump advocating for self-sacrifice when it pertains to how many dolls American children ought to possess; his administration’s initial trade "agreement" features an exemption for automobiles – particularly luxurious models.
Trump on Thursday hailed the fact that the U.S.-UK agreement for trade discussions advocates for reducing taxes on British automobiles, stating he did not mean to encourage high-end manufacturers such as Rolls-Royce, Bentley, and Jaguar to produce vehicles in the U.S.
According to a fact sheet shared by the White House, the Trump administration has already agreed to lower tariffs on the first 100,000 UK vehicles imported into the United States each year to 10%. Additional vehicles face a 25% tariff.
"We reduced it from 25 to 10 for Rolls-Royce since these cars won't be manufactured here. I wouldn't request they produce them locally. It's a highly exclusive vehicle with quite restricted numbers," Trump stated during an announcement of the deal with Britain at the Oval Office.
At the same occasion, Trump suggested imposing a 100% tariff on products manufactured by Mattel and criticized the firm’s leader following this. The company behind Barbie and Hot Wheels stated The toys couldn't be produced in America and remain affordably priced for customers.
According to S&P Global Mobility, the United Kingdom sent around 90,000 cars to the U.S. last year, ranking as the country’s sixth-biggest supplier of imported automobiles and contributing just 1% to all vehicle imports.
US Commerce Department data showed that the value of cars imported from the UK came to $12.3 billion, meaning that the average price of a British import was more than $135,000.
"It isn’t like those mass-produced monster car companies that churn out millions of vehicles. Instead, these brands produce an extremely limited number of ultra-luxurious automobiles which include marques like Bentley and Jaguar... truly exceptional models," Trump stated. "These are essentially handcrafted items produced over many years at the same sites," he continued, emphasizing his desire to support manufacturers of such exclusive cars.
Other upscale British automotive brands that might see advantages due to reduced tariffs encompass Land Rover, Aston Martin, and Mini.
This indicates that Trump has reduced costs for importing vehicles that only a small number of Americans purchase—or, similarly, cannot afford—while maintaining current tariffs for now. More widespread and budget-friendly labels , largely sourced from nations other than the UK.
“Laser focused on reducing prices for everyday Americans from Day One,” University of Michigan economist Justin Wolfers posted on X, “the President has struck a deal that will lower the price of Rolls Royces, Bentleys, Jaguars, Aston Martin’s, Range Rovers and Minis.”
Wolfers pointed out that "no other everyday product was granted exemptions" within the US-UK trade agreement.
In the meantime, Mattel CEO Ynon Kreiz stated that it's improbable Trump's tariffs will lead to toy production returning to the U.S.
“The CEO of Mattel informed CNBC that they do not anticipate this occurring,” he said following the company’s warning about the impact of tariffs. increase toy prices for American consumers.
Trump responded, stating: "We'll impose a 100% tariff on his products, and he won't be able to sell even a single item in the U.S., which is their largest market." He further commented: "I wouldn't want him serving as an executive for very long either."
Certainly, imposing a 100% tariff on America’s top toy manufacturer would probably lead to a significant increase in toy prices paid by U.S. customers. This might also make it extremely challenging or almost unfeasible for moms and dads to purchase new Barbies and various other toys. Stores generally begin replenishing their stock during summertime in preparation for the festive buying period.
Ken Griffin, the hedge fund tycoon who supported Trump during the 2024 election, told CNBC this week that tariffs are a “painfully regressive tax” that will “hit the pocketbook of hardworking Americans the hardest.”
In an interview with Politico Griffin also mentioned that "tariffs pave the way for crony capitalism," where the government chooses the victors and the vanquished. He expressed his surprise, stating, "I believed this process would unfold over several years. It's horrifying to see it happen within just a few weeks."
Maria Sole Campinoti from romero.my.id contributed to this report.
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