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President Donald Trump said Wednesday that he would impose a 25% tariff on “all cars not made in the US.” Trump said cars built on US car inventory “have no tariffs” in after-hours transactions after Trump’s announcement.
President Donald Trump said Wednesday that he would impose a 25% tariff on “all cars not made in the US.”
Trump said there are “no tariffs” on cars built in the US.
The new tariffs were codified in the presidential declaration that Trump signed in an oval office. They will come into effect on April 2nd and “we will begin collecting on April 3rd,” he said.
Trump White House aide Wilschwarz said the new tariffs would apply to “foreign cars and light trucks.” He made it clear that they come in addition to the obligations they already have in place.
Schaff said tariffs will bring “over $100 billion in new annual revenues” to the US.
Details regarding the declaration were not immediately clear. Most vehicles are assembled from thousands of parts that can come from dozens of different countries.
Trump said there is “very strong police” where the car parts are hit by tariffs.
European Commission Chairman Ursula von der Leyen immediately criticised the new US tariffs, vowing that the European Union “continue to seek negotiated solutions while protecting economic interests.”
“Taxes are taxes. It’s bad for businesses and equally bad for consumers in the US and European Union,” she said in a statement.
Following Trump’s announcement, auto stocks fell in after-hours trading. Shares in General Motors, Stellantis and Ford Motor all lost about 5% in extended trading.
On March 5, Trump gave the car manufacturer known as the Big 3, a one-month exemption from Mexico and Canada’s 25% tariffs on vehicles compliant with the existing North American trade agreement known as the USMCA.
Trump previously hinted that new car fares could arrive by April 2nd.
“We will announce that perhaps the coming days and April 2 will be mutual tariffs,” he said at a cabinet meeting on Monday.
Trump has long shown his plan to impose heavy tariffs on foreign trading partners. However, his unpredictable and frequently changing policy rollout has sparked disruption in the stock market and left business leaders uncertainly about how to plan for the future.
Geoff Robins | AFP | Getty Images
On March 8, 2025, we are preparing to carry vehicles at Ambassador Bridge in Windsor, Ontario.
Trump touted “Liberation Day” and “Big One” on April 2nd. As initially explained, his plan slaps mutual tariffs on all countries that have their own import duties on US goods, while also imposing tariffs in response to other unfavourable trade policies, such as the use of VAT.
But Trump and his officials have recently suggested that tariffs coming on April 2 could be softer than originally appeared.
Trump said Friday that these tariffs are “flexible,” suggesting that their duties will be “more generous than mutual.” Treasury Secretary Scott Bescent said last week that the country could hold advance negotiations with the United States on April 2 to avoid facing new tariffs.
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