Trump To Launch 25 Percent Tariff On All Car Imports April 2

WASHINGTON – President Trump on Wednesday announced he was imposing a 25 percent tariff on foreign-made vehicle imports, marking the latest escalation of his trade war against other nations.

Trump said in the Oval Office that the 25 percent tariff would apply to “all cars not made in the United States.” The tariffs will go into effect on April 2, Trump said.

The president said that if parts are made in America, those parts would not be taxed or tariffed. Many cars are built with parts that originate in multiple different countries before the vehicle is assembled.

“For the most part, I think it’s going to lead cars to be made in one location,” Trump said.

Cox Automotive predicts 700,000 fewer vehicles will be sold in the U.S. this year due to tariff volatility.

Recession fears, production disruptions and higher vehicle prices amid an ongoing trade war constrained the latest sales forecasts, Cox chief economist Jonathan Smoke told media Wednesday.

The Atlanta automotive analytics and software company said it anticipates 15.6 million new vehicles will be sold in the U.S. in 2025, down 4.3% from the 16.3 million it originally forecast.

Trump argued the tariffs would encourage foreign car producers to move production into the United States and boost jobs in the long run. But the tariffs could lead to higher prices for cars in the meantime, as it could increase the cost for manufacturers to bring in certain parts.

“We’re signing an executive order today that’s going to lead to tremendous growth in the automobile industry,” Trump told reporters.

The move is likely to hit Japan, South Korea and Germany particularly hard.

The stock market dipped on Wednesday afternoon in anticipation of Trump’s announcement, which the White House had previewed earlier in the day.

Trump had forecasted the move earlier in the week, and he has suggested it will not be the final round of tariffs in the coming days. Trump has also indicated he plans to impose sector-specific tariffs on semiconductors and lumber imports.

And Trump has for weeks teased that his administration will on April 2 impose reciprocal tariffs on any nation that already has duties imposed on U.S. goods. The president said Wednesday the tariffs would be “very lenient” and “somewhat conservative.”

The president earlier this month announced broad tariffs on Canadian and Mexican imports. Two days later, he said there would be a one-month delay for auto parts covered under the U.S.-Mexico-Canada trade agreement after leaders from Ford, Stellantis and General Motors raised concerns about the policy affecting production. That exemption is set to expire next week.

Economists have warned that Trump’s reliance on tariffs will likely lead to a spike in the cost of goods for U.S. consumers. The Federal Reserve last week projected the U.S. economy would grow more slowly than previously expected.

Trump has shrugged off those concerns, arguing tariffs will grow the government’s coffers and incentivize companies overseas to relocate to the United States to avoid paying the penalties. His administration has touted investments from companies like Apple, Honda and Hyundai in recent weeks.

By Mike Brennan|2025-03-27T09:10:21-04:00March 26th, 2025|Featured, News|

About the Author: Mike Brennan

Founder of Michigan News Network, and serves as CEO, as well as Editor & Publisher of MITECHNEWS.COM. Brennan has worked since 1980 as a technology writer at newspapers in New York, NY, San Jose, CA., Seattle, WA., Memphis, TN., Detroit, MI., and London, England. He co-founded and served as managing editor of Pacific Rim News Service (SEATTLE), which developed a network of more than 100 freelance journalists in 17 Asia-Pacific countries.