Trump Unveils 25% Auto Tariff

Trump's actions are poised to make cars more expensive for US consumers already uneasy about inflation and recession risks

- Agence France-Presse

WASHINGTON: President Donald Trump said he will be implementing a 25% tariff on auto imports, expanding a trade war designed to bring more manufacturing jobs to the U.S. and setting the stage for an even broader push on levies next week.

"What we're going to be doing is a 25% tariff on all cars that are not made in the U.S.," Trump said at the White House on Wednesday, casting the measure as "very modest."

"We're going to charge countries for doing business in our country and taking our jobs, taking our wealth, taking a lot of things that they've been taking over the years," he added.

The tariffs will be on top of levies already in place, White House Staff Secretary Will Scharf said, and the administration projects that the tariffs would result in $100 billion of new annual revenue to the U.S.

Shares of General Motors Co., Ford Motor Co., and Stellantis NV dropped in after-hours trading, led by a decline of 2.8% by Stellantis.

Wednesday's move comes ahead of an even broader announcement of so-called reciprocal tariffs expected on April 2—a bid to drive down other countries' barriers and shrink U.S. trade deficits.

Those tariffs will see the U.S. apply rates on a country-by-country basis to counter barriers levied on American imports.

Trump, though, has signaled some trading partners may receive possible exemptions or reductions in duties. Other industry-specific tariffs are also in the works, with Trump threatening levies on lumber, semiconductors, and pharmaceutical drugs.

"That's the real Liberation Day of America, and that's going to be in April 2, and I look forward to it," Trump said on Wednesday.

The auto levies would mark a significant expansion of the president's trade fight, and likely ensnare some of the biggest automotive brands in countries including Japan, Germany, and South Korea, all major U.S. trading partners.