U.S. President Donald Trump Announces 25% Tariff on All Auto Imports
New car inventory at dealership with price tags showing potential tariff impacts. Mar 26, 2025 Photo: EFE
March 27, 2025 Hour: 7:13 am
President Trump imposes 25% tariff on all auto imports, targeting major car exporters like Mexico, Canada, and Germany. Learn how this trade policy could disrupt global automotive supply chains.
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U.S. President Donald Trump announced on Wednesday the imposition of a 25% tariff on all automobile exports to the United States. “What we’ll do is impose a 25% tax on every car not made in the U.S. If they’re made in the U.S., they won’t face any tax,” he emphasized.
Trump’s announcement is part of the tariff war waged by the U.S. leader, directly affecting the economic lifeline of automotive exporting companies operating in that country. During the signing of the executive order to implement this tariff, the president stressed that “effectively we’ll charge a 25% tariff (on automobiles).”
Wednesday’s measure had already been previewed on Monday, when Trump noted that the tariffs could take effect before April 2, a date the president himself called “Liberation Day.”
The countries most affected by this decision are Mexico, Canada, Germany, Japan and South Korea, due to their deep involvement in the automotive industry.
According to official data, in 2024 the North American country imported automotive sector products worth $475 million. Of that total, half went to vehicle imports specifically, highlighting the economic impact the new tariff will have on brands exporting their vehicles to that country.
Faced with this drastic measure, the Canadian government warned that companies in that sector in the country have stated that applying the 25% to their products “will provoke a large-scale crisis that will force many plants to stop production within weeks.”
Canadian Prime Minister Mark Carney indicated that due to the integration of the U.S.-Canadian automotive sector, products move between both territories multiple times. This, the prime minister warns, would allow the 25% to be applied each time an entry is made into U.S. territory, which would multiply the tariff’s value.