On Wednesday, March 26, 2025, U.S. President Donald Trump signed an executive order imposing a 25 percent tariff on imported cars not manufactured in the United States. This decision, announced during a press conference at the White House, is part of Trump’s broader strategy to boost domestic manufacturing and reduce reliance on imports.
The tariffs will take effect on April 2, 2025, and will apply to fully assembled vehicles imported from countries such as Mexico, Canada, Japan, South Korea, and Germany.
Trump emphasized that the move aims to “take back” wealth and jobs from foreign nations, which he claims have benefited disproportionately from trade with the U.S. The White House stated that the tariffs are designed to protect the U.S. auto industry, which has faced challenges due to excessive imports undermining domestic production.
Critics argue that the tariffs could disrupt global supply chains and increase vehicle prices for American consumers. Industry experts estimate that the average price of a car could rise by $3,000 to USD 10,000, making new vehicles less affordable. Additionally, automakers in Mexico and Canada may face significant challenges, as the tariffs could impact their integrated supply chains.
The announcement has sparked backlash from key trading partners, including the European Union, Canada, and Japan, who have expressed concerns about the economic impact of the tariffs. While Trump views the measure as a step toward revitalizing U.S. manufacturing, its long-term effects on the auto industry and international trade relations remain uncertain.
With information from whitehouse.gov
