Trump Imposes 25% Tariffs on Cars, Escalating Trade War
Trump Imposes 25% Tariffs on Cars, Escalating Trade War
President Donald Trump has announced a 25 percent tariff on imported cars and car parts, his latest salvo in a widening trade war that has stoked tensions with partners and allies.
Speaking at the White House on Wednesday, Trump said the tariffs would “take back” money from foreign countries that have been “taking our jobs” and “our wealth”.
“They’ve taken so much out of our country – friend and foe. And, frankly, friend has oftentimes been much worse than foe,” he said at the Oval Office. “This is very modest.”
Calling the move “exciting”, Trump, who has pledged to revive manufacturing in the US, said the tariffs would “spur growth like you haven’t seen before”.
Trump announces steep 25% tariffs on auto imports and parts.
Trading partners from Japan to Canada respond with threats of retaliation, while Tesla boss Elon Musk says the cost impact of the tariffs on his firm's cars is "not trivial"https://t.co/uaQES8Kjp0 pic.twitter.com/GuMUjJlKTx
— AFP News Agency (@AFP) March 27, 2025
The White House said in a fact sheet that the tariffs set to take effect on April 2 would “protect and strengthen” the US auto industry, which it claimed had been “undermined by excessive imports threatening America’s domestic industrial base and supply chains”.
“Foreign automobile industries, bolstered by unfair subsidies and aggressive industrial policies, have expanded, while US production has stagnated,” the White House said.
It said importers bringing in vehicles and parts under the US-Mexico-Canada Agreement would have the chance to certify what portion of their products are US-made so that they pay the tariff only on “non-US content”.
Trump’s tariffs on cars draw condemnation abroad
Trump’s announcement drew swift condemnation and expressions of concern from key trading partners, including the European Union, Canada and Japan.
European Commission President Ursula von der Leyen said the tariffs would be “bad for businesses” and “worse for consumers”.
“The EU will continue to seek negotiated solutions, while safeguarding its economic interests,” von der Leyen said in a post on X.
Canadian Prime Minister Mark Carney described the move as a “direct attack” on Canadian workers.
“We will defend our workers. We will defend our companies. We will defend our country – and we will defend it together,” he said.
Japanese Prime Minister Shigeru Ishiba said his government would consider “appropriate measures” in response to the tariffs.
“Naturally, we will consider all options,” Ishiba said in remarks to parliament. “The bottom line is that we must consider what will best serve the national interests of Japan.”
The US imported $214bn worth of passenger cars in 2024, according to the US Department of Commerce.
Top auto exporters to the US include many of Washington’s closest partners and allies, including Mexico, Canada, South Korea, Japan and Germany.
Shares of Japanese and South Korean carmakers fell sharply on Thursday, following earlier declines in US auto stocks in advance of Trump’s announcement.
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