Tariffs on car parts entering the US come into force

Import taxes were eased after carmaker outcry, but it's "still a big tariff", analysts say.

Watch LiveBritish Broadcasting CorporationHomeNewsSportBusinessInnovationCultureArtsTravelEarthAudioVideoLiveHomeNewsIsrael-Gaza WarWar in UkraineUS & CanadaUKUK PoliticsEnglandN. IrelandN. Ireland PoliticsScotlandScotland PoliticsWalesWales PoliticsAfricaAsiaChinaIndiaAustraliaEuropeLatin AmericaMiddle EastIn PicturesBBC InDepthBBC VerifySportBusinessExecutive LoungeTechnology of BusinessFuture of BusinessInnovationTechnologyScience & HealthArtificial IntelligenceAI v the MindCultureFilm & TVMusicArt & DesignStyleBooksEntertainment NewsArtsArts in MotionTravelDestinationsAfricaAntarcticaAsiaAustralia and PacificCaribbean & BermudaCentral AmericaEuropeMiddle EastNorth AmericaSouth AmericaWorld’s TableCulture & ExperiencesAdventuresThe SpeciaListEarthNatural WondersWeather & ScienceClimate SolutionsSustainable BusinessGreen LivingAudioPodcastsRadioAudio FAQsVideoLiveLive NewsLive SportHomeNewsSportBusinessInnovationCultureArtsTravelEarthAudioVideoLiveWeatherNewslettersWatch LiveTariffs on car parts entering the US come into force1 day agoShareSaveNatalie ShermanBBC NewsShareSaveGetty ImagesA 25% import tax on engines, transmissions and other key car parts has come into force in the US, raising pressure on an industry finding its way through a thicket of policy changes.

The new tariff comes days after Donald Trump eased the measure in response to business worries, but did not eliminate it.

The US president has said the new tariff, along with a 25% import tax on cars that went into effect last month, is intended to push carmakers to do more manufacturing in the US.

But analysts said any immediate expansions in the US were likely to come at the expense of production elsewhere, while also leading to higher costs for the businesses - and ultimately higher prices for customers.

For now, companies have been shielded from pain, as concerns about price hikes have prompted a sales surge.