Trump to impose 25% tariff on all imported vehicles and foreign-made auto parts
President Donald Trump and the White House announced a series of sweeping tariffs on foreign-made cars and auto parts Wednesday, a prelude to the April 2 “Liberation Day” duties that are expected to hit a wide variety of goods made by many of the largest U.S. trading partners.
President Donald Trump and the White House announced a series of sweeping tariffs on foreign-made cars and auto parts Wednesday, a prelude to the April 2 “Liberation Day” duties that are expected to hit a wide variety of goods made by many of the largest U.S. trading partners.
Many details remained unclear about the tariffs, which still sparked criticism from foreign governments and hit shares in automakers. Trump’s initial statements about the tariffs were quickly updated by an administration official and a fact sheet posted on the White House website.
Speaking from the Oval Office, Trump initially said he was imposing a 25% tariff on all cars coming into the country. The White House later clarified that foreign auto parts would also be taxed at the 25% rate even if the vehicles they go into are assembled domestically.
However, companies that import vehicles under the United States-Mexico-Canada Agreement (USMCA) will get special consideration until the Commerce Department establishes a process for levying the 25% duties, the White House said.
USMCA-compliant auto parts will remain tariff-free until the commerce secretary, in consultation with U.S. Customs and Border Protection, establishes a process to apply tariffs to their non-U.S. content.
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