Trump Announces 25% Tariffs on Foreign Cars

U.S. President Donald Trump has revealed plans to impose a 25% tariff on all imported cars, escalating a global trade war just weeks after previous tariffs caused a market downturn and raised concerns about a potential recession.

Trump made the announcement on Wednesday from the Oval Office, confirming that the new tariffs would be added to existing ones. “We start off with a 25% base. I think our automobile industry will flourish like it hasn’t before,” he said.

Trump clarified that even vehicles with American-made parts assembled outside the U.S. would still be subject to the tariffs. Earlier this week, he had stated that he would provide more details before April 2, the date he previously set to unveil the 25% tariff on “all cars that are not made in the United States.” On that day, Trump is also expected to announce a package of reciprocal tariffs against America’s trading partners, calling it “Liberation Day.”

A White House fact sheet released after Trump’s remarks outlined that the 25% tariffs would apply to a range of imported passenger vehicles, including cars, SUVs, minivans, cargo vans, and light trucks. The tariffs would also target key auto parts such as engines, powertrains, and electrical components.

The White House emphasized that 50% of the roughly 16 million cars bought in the U.S. last year were imported. Of the 8 million cars assembled domestically, the White House estimated that only about 50% of the content was made in the U.S., meaning only 25% of the vehicles purchased could be classified as “Made in America.”

The new tariffs will take effect at 12:01 a.m. on April 3, one day after Trump’s planned reciprocal tariffs are set to begin. Meanwhile, tariffs on auto parts will go into effect on May 3.

The White House explained that the move was designed to protect the U.S. auto industry, which it views as crucial to national security. According to the administration, excessive imports have undermined America’s domestic industrial base and supply chains.

Currently, the U.S. imposes a 2.5% tariff on passenger car imports and a 25% tariff on imported pickup trucks.