US President Donald Trump announced on Friday his intention to reveal tariffs on imported cars, potentially around April 2, escalating his series of tariff threats since assuming office.
Trump’s statement left open whether these tariffs would encompass all automobile imports. Since his inauguration on January 20, Trump has wielded tariff threats against both allies and adversaries alike. He views tariffs as a means to generate revenue, address trade imbalances, and compel countries to address US concerns.
Critics caution that tariffs often translate to higher costs for American consumers rather than impacting foreign exporters directly.
When queried about the timing of the auto tariffs unveiling, Trump responded, “Maybe around April 2,” offering no further specifics on Friday.
Also Read: Trump’s Tariffs Could Cost U.S. Auto Industry $33 Billion, Analysts Warn
Approximately half of all cars sold in the US are domestically manufactured. Among imports, half originate from Mexico and Canada, while the rest come from major auto-producing nations like Japan, South Korea, and Germany. Smaller volumes are sourced from countries like Britain, Italy, and Sweden.
Recently, Ford CEO Jim Farley criticized a proposed 25 percent tariff on Mexico and Canada, arguing it disadvantages US firms that have integrated supply chains under agreements like the US-Mexico-Canada Agreement (USMCA).
The White House had previously postponed tariffs for 30 days following developments in border security and fentanyl policies with Canada and Mexico.
The potential auto tariffs follow recent decisions to impose tariffs on steel and aluminum, set to begin on March 12. Trump has also indicated plans for tariffs on semiconductors, steel, oil, and gas.
Also Read: Union Budget FY26: India Reduces Import Duties on Motorcycles, Boosting Premium Segment
In a broader trade move, Trump introduced plans for “reciprocal tariffs” that could affect all US trading partners on a case-by-case basis.
The American Automotive Policy Council, representing Detroit automakers General Motors, Ford, and Stellantis, urged Trump to reconsider tariffs on Mexico and Canada, emphasizing compliance with USMCA requirements to avoid additional tariffs.
AAPC President Matt Blunt affirmed support for Trump’s trade evaluations while stressing the exemption of USMCA-compliant vehicles and parts from additional tariffs.
The AAPC did not immediately respond to requests for comment on Friday.
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