Trump announces 25% tariffs on car imports to the US

US President Donald Trump has announced a 25 percent tariff on car imports, BBC reports.

The White House believes that this step will promote domestic production in the sector. The tariffs on car imports will come into effect on April 3.

However, analysts warn that such actions are likely to lead to a temporary halt in much of the US car production, higher prices, and strained relations with allies.

Last year, the United States imported about 8 million cars worth about $240 billion. Mexico was the largest foreign supplier, followed by South Korea, Japan, Canada, and Germany. Many American automotive companies operate in Mexico and Canada, as the three countries have a free trade agreement.

In addition, the duties will also apply to imports of auto parts – they are planned to start being levied in May or later. However, they will not apply to parts from Canada and Mexico until the US Customs and Border Patrol create a system for assessing tariffs.

The President of the European Commission Ursula von der Leyen expressed regret over the US decision to impose duties on European car exports. According to a statement, the EU will assess this announcement along with other measures that the US plans to take in the near future. The bloc will continue to seek a solution through negotiations, while protecting its economic interests.

Canadian Prime Minister Mark Carney said that Donald Trump’s move is a “direct attack” on his country and that the trade war is harming Americans. He said that it is necessary to familiarize oneself with the details of the decree before taking measures in response.

According to Reuters, South Korea’s automotive sector may face significant difficulties when the US tariffs on auto imports come into effect. At a meeting with representatives of the sector, Minister of Industry Ahn Duk-gyun said that the government plans to take emergency measures on this issue by April. In particular, the authorities will consider financial assistance, investment support and assistance with market diversification. South Korea will also actively engage the US government in exploring measures to minimize the negative impact on South Korean automotive companies and suppliers.

As GMK Center reported earlier, Trump’s trade war could lead to a global financial crisis. On March 12, 2025, US tariffs of 25% on all imported steel and aluminum came into effect. After a series of consultations and postponements, the United States imposed 25% tariffs on most imports from Canada and Mexico on April 2 and doubled the existing 10% tariff on Chinese imports to 20%, affecting annual imports of approximately $1.5 trillion.