Trump Tariffs on Imported Cars Announced

Trump Announces 25% Tariffs on Imported Cars
Measure Will Affect Countries Like Mexico, Canada, Germany, Japan, and South Korea
Goal Is to Attract Investment and Reduce Trade Deficits

U.S. President Donald Trump announced from the Oval Office a sweeping tariff measure against imported automobiles on Wednesday, March 26.

“Effectively, we will impose a 25% tariff on cars,” Trump stated at the White House shortly before signing the executive order enacting the measure, which he said would not apply to car parts manufactured in the United States.

The new tariffs, set at approximately 25%, directly target foreign manufacturers, including major trade partners such as Mexico, Canada, Germany, Japan, and South Korea.

In a press conference, Trump emphasized the scale of the move, highlighting his intention to correct what he calls unfair trade deficits and encourage investment within the United States.

Trump Announces Tariffs on Imported Cars

USA activates a 25% tariff to imported vehicles. Virtually half of the units sold are assembled abroad, which implies an increase in costs. Trump talks about deducting interests for Made in USA cars https://t.co/aqbwxt6nma pic.twitter.com/zpdnycrekj

– Sandro Pozzi (@sandro_pozzi) March 26, 2025

These tariffs are expected to generate substantial revenue for the country—projected between $600 billion and $1 trillion over the next two years.

“They will take effect on April 2, and we’ll start collecting on April 3,” added the president, stressing, “If you manufacture your car in the United States, there are no tariffs.”

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The Trump administration argues that the tariffs could push foreign manufacturers to shift production to U.S. soil to avoid the steep duties.

As an example, Trump cited Honda’s plans to produce a new model in Indiana instead of Mexico—directly influenced by the tariff policy.

Additionally, the president announced a forthcoming series of reciprocal tariffs, also set to begin April 2, targeting countries that impose customs duties on U.S. products and services.

This strategy, referred to as “Liberation Day,” aims to rebalance international trade relationships from Washington’s perspective.

Since returning to the White House in January, Trump has maintained an aggressive stance on implementing tariffs, according to EFE.

He has used these measures not only as economic tools but also as political leverage on multiple fronts, including immigration and the trade of substances like fentanyl.