March 27, 2025
You’re going to see prices going down, but it’s going to go down specifically because they’re going to buy what we’re doing, incentivizing companies and even countries with companies to come into America and build.
President Donald Trump on Wednesday in the Oval Office while announcing a 25% tariff on all foreign-made cars and light trucks.
Why It Matters: President Donald Trump announced on Wednesday a 25% tariff on all foreign-made cars and light trucks, and collection will begin April 3. He emphasized that vehicles built in the U.S. will face “absolutely no tariff.” These new duties will be added on top of existing tariffs.
What To Know:
- Trump White House aide Will Scharf estimated the tariffs will generate over $100 billion in annual revenue. However, details remain unclear, as most cars consist of parts from multiple countries. President Trump promised “very strong policing” to determine which parts face tariffs.
- European Commission President Ursula von der Leyen warned that the tariffs would hurt businesses and consumers in both the U.S. and Europe, stating, “Tariffs are taxes — bad for businesses, worse for consumers equally in the US and the European Union.” Canadian Prime Minister Mark Carney called the move “a very direct attack” and vowed to protect Canada’s interests, saying, “We will defend our workers. We will defend our companies. We will defend our country.” (AP)
- Auto stocks, including General Motors, Ford and Stellantis, fell about 5% in after-hours trading.
Read More: Trump announces 25% tariffs on all cars ‘not made in the United States’ (CNBC)
Trump Announces 25% Tariffs on Imported Cars and Car Parts (New York Times)
Image Credit: Adobe Stock / Kadmy
by Jalen Meyerpeter, Based in Arizona.
