US President Donald Trump has reiterated plans to impose tariffs on automobiles, with the move expected to take effect in early April. The announcement comes amid a series of trade actions taken by Trump since taking office for the second time.
Trump’s auto tariff plan aims to level the playing field for US automotive exports abroad and reinvigorate the country’s manufacturing base. However, the move has sparked concerns among businesses, long-standing US allies, and economists about inflation.
The European Union collects a 10% tariff on vehicle imports, four times the US passenger car tariff rate of 2.5%. Trump views this as unfair treatment of US automotive exports in foreign markets.
Automakers such as Ford Motor Company and General Motors have expressed concerns over the proposed tariffs. Matt Blunt, president of the American Automotive Policy Council, stated that vehicles and auto parts meeting USMCA requirements should not be subject to additional tariffs.
The US-Canada-Mexico Agreement (USMCA) is up for review in 2026, and some analysts see Trump’s comments on auto tariffs as an opening bid to renegotiate the pact. Trump’s top economic advisers are working on plans to impose like-for-like tariffs on goods from countries that tax US imports.
The US has already imposed tariffs on Chinese imports and steel and aluminum from Canada and Mexico. The latest move aims to secure a level playing field for American goods abroad, but its impact remains uncertain.
Source: https://www.reuters.com/business/trump-keeps-tariffs-drumbeat-going-with-autos-targeted-next-2025-02-14