Donald Trump Announces 25% Tariffs on Cars Not Made in the USA

US President Donald Trump continues to stir global economic unrest as he announced today that a 25% tariff will be imposed on all cars imported into the US. Specifically, Trump declared new 25% tariffs on vehicles ‘not made in the United States,’ while clarifying that there is ‘absolutely no tariff’ for cars produced domestically. These tariffs also apply to American brands whose vehicles are assembled abroad, potentially raising prices significantly for consumers. It remains unclear whether car parts will be exempt from this measure. Additionally, Trump referred to April 2nd as ‘Liberation Day,’ when many of the announced import tariffs are expected to take effect. When asked if there was any possibility of reversing his stance, Trump replied, ‘This is final.’ The Republican president views these tariffs as a tool to increase revenue to offset tax cuts and rejuvenate the country’s declining industrial base. In 2024, the US imported passenger cars worth $220 billion and automotive goods valued at $474 billion. The largest suppliers were Mexico, Japan, South Korea, Canada, and Germany. Trump’s close aide, Will Sharf, clarified that the measures target vehicles and light trucks manufactured overseas, emphasizing that these tariffs will be added to existing ones. These new tariffs are projected to generate over $100 billion annually for the US Treasury. Since returning to office in January 2025, Trump has already imposed tariffs on imports from major US trade partners, including Canada, Mexico, and China, along with 25% tariffs on steel and aluminum imports. Following Trump’s announcements, auto stocks plummeted, with General Motors dropping over 4%, Stellantis nearly 3%, and Ford Motor approximately 1%.