Trump Announces 25% Tariffs on Car Imports to the US

Donald Trump

Tariffs Set to Take Effect on April 3, Raising Concerns Over Industry Impact

US President Donald Trump has announced a 25% tariff on car imports, a move aimed at boosting domestic auto production, according to BBC reports. The tariffs are scheduled to come into effect on April 3, with additional duties on auto parts expected to follow in May or later.

Potential Industry Disruptions and Global Reactions

Analysts warn that the new tariffs could temporarily halt a significant portion of US car production, drive up vehicle prices, and strain relations with key trade partners. In 2024, the United States imported approximately 8 million cars valued at $240 billion, with Mexico as the top supplier, followed by South Korea, Japan, Canada, and Germany. Many US automotive manufacturers operate in Mexico and Canada due to existing free trade agreements among the three nations.

While the tariffs on auto parts will be implemented later, imports from Canada and Mexico will initially be exempt until the US Customs and Border Patrol establishes a tariff assessment system.

International Responses and Trade Tensions

European Commission President Ursula von der Leyen expressed regret over the US decision, stating that the European Union will assess the move and consider countermeasures while continuing negotiations. Meanwhile, Canadian Prime Minister Mark Carney called the tariffs a "direct attack" on his country and criticized the trade war’s economic impact on American consumers.

In South Korea, the government is preparing emergency measures to mitigate the effects of the tariffs on its automotive sector. Industry Minister Ahn Duk-gyun announced plans for financial assistance, investment support, and market diversification efforts to help affected companies. South Korea will also engage with the US government to explore ways to reduce the negative impact on its automotive industry.

Broader Trade Implications

As previously reported by GMK Center, Trump's trade policies have already contributed to growing trade tensions. On March 12, 2025, the US imposed a 25% tariff on imported steel and aluminum. Following consultations and delays, additional tariffs on Canadian and Mexican imports took effect on April 2, while duties on Chinese imports were doubled from 10% to 20%, affecting roughly $1.5 trillion in annual trade.