Former U.S. President Donald Trump has announced plans to impose a sweeping 25% tariff on all foreign-made cars, just days before he is expected to unveil broader tariffs on goods from around the world.
“What we are going to do is a 25% tariff on all cars not manufactured in the United States,” Trump stated in the Oval Office, as reported by Telegrafi.
“We start with a base of 2.5%, which is where we are now, and we go up to 25%,” he added.
In February, Trump floated the idea of a 25% tariff on imported vehicles but had not provided further details.
On Monday, he hinted that the new auto industry tariffs could come “in the very near future.”
On April 2— a date Trump has dubbed “Liberation Day”—he is expected to unveil a broad range of what he calls “reciprocal tariffs,” arguing that U.S. trade partners unfairly tax American goods.
Trump has long maintained that the U.S. is being exploited by its trade partners and that tariffs are the best solution. However, in the past, he has delayed or softened some of his tariff plans.
Many economists have expressed alarm, warning that the new tariff measures could drive up prices across the U.S. economy.
A study by Anderson Economic Group, an automotive consulting firm, found that general tariffs on Canada and Mexico alone could increase car prices in the U.S. by as much as $12,000.
