Trump announces 25% tariffs on foreign-built vehicles

In an effort to exacerbate tensions with trading partners in advance of additional anticipated levies next week, US President Donald Trump slapped heavy tariffs on auto imports and parts on Wednesday.

“What we’re going to be doing is a 25 percent tariff on all cars that are not made in the United States,” he said as he signed the order in the Oval Office.

The move takes effect at 12:01am eastern time on April 3 and impacts foreign-made cars and light trucks. Key automobile parts will also be hit within the month.

Peter Navarro, Trump’s senior counselor for trade and manufacturing, later in a briefing blasted “foreign trade cheaters” who he said turned America’s once-bustling manufacturing sector into a “lower wage assembly operation for foreign parts.”

“That threatens our national security because it’s eroded our defense and manufacturing industrial base,” he said.

He chastised Germany and Japan for continuing to build more important parts in their own countries.

Since returning to office in January, Trump has imposed new tariffs on imports from China, Canada, and Mexico—three of the United States’ largest trading partners—in addition to a 25 percent tax on steel and aluminum.

The current product taxes will be supplemented with the latest levies.

However, depending on their American content, cars entering under the US-Mexico-Canada Agreement (USMCA) may be eligible for a reduced charge, the White House stated.

Similarly, USMCA-compliant auto parts will remain tariff-free as officials establish a process to target their non-US content.