United States 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 “taking our wealth”.
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”.
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”.
The White House said importers bringing in vehicles and parts under the United States-Mexico-Canada Agreement would have the chance to certify what portion of their products are US-made so that they only pay the tariff on “non-US content”.
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”. Canadian Prime Minister Mark Carney described the move as a “direct attack” on Canadian workers.
Japanese Prime Minister Shigeru Ishiba said his government would consider “appropriate measures” in response to the tariffs.
Trump’s move is likely to cause significant disruption to the global auto industry, including the North American market, where automakers in the US, Mexico and Canada have developed highly integrated supply chains for decades of tariff-free trade.
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 ahead of Trump’s announcement.
By: Isaac Clottey
