The United States will impose a tariff of 25% on cars built outside the country, President Donald Trump said today, with major tariffs on a wide range of nations and goods set to begin in early April.
Trump said the vehicle tariffs are intended to be permanent, with the goal of urging automakers overseas to add factories in the U.S.
“What we’re going to be doing is a 25% tariff for all cars that are not made in the United States,” Trump said. “We start off with a 2.5% base, which is what we’re at, and go to 25%.”
“If you build your car in the United States, there will be no tariff,” he said.
These tariffs will apply to all completed cars and trucks shipped to the U.S., including American brands with factories overseas. Tariff revenue on vehicles will be collected from 3 April, Trump said.
General Motors, Ford, and Stellantis’ share prices all declined by around 5% in extended trading.
The European Commission criticised the vehicle tariff plans, with President Ursula von den Leyen saying, “As I have said before, tariffs are taxes — bad for businesses, worse for consumers equally in the U.S. and the European Union.”
Automakers are also facing 25% tariffs on steel and aluminium imported into the U.S., which Trump imposed this month.
Trump previously agreed to delay proposed tariffs on cars built in Mexico and Canada earlier this month after a call with representatives from General Motors, Ford, and Stellantis. These companies also spoke with members of the administration this week ahead of the vehicle tariff announcement.
Another major slate of tariffs will enter into effect at midnight on 3 April, including reciprocal tariffs. While the White House has yet to announce details, European Union nations are reportedly likely to see a flat double-digit tariff on all goods.
Trump said this week that tariffs on lumber and semiconductor chips would also be announced in the coming days. “We’re going to get all those chip companies coming back,” he said.
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