In a seismic shift for the U.S. auto industry, President Donald Trump announced Wednesday that he will impose a 25% tariff on imported cars and auto parts, a move designed to bolster domestic manufacturing but likely to drive up consumer prices.
The sweeping tariff, set to take effect on April 3, will apply to sedans, SUVs, minivans, light trucks, and key auto components such as engines, transmissions, and electrical systems.
“America First” or Consumer Burden?
Speaking at the White House, Trump framed the tariff as a necessary step to revitalize American car manufacturing, criticizing automakers like Ford and General Motors for moving production offshore.
“This will continue to spur growth in our great American auto industry,” Trump declared. “If companies want to sell their cars here, they should be building them right here in the USA.”
However, industry experts warn that nearly half of all cars sold in the U.S. are imported, along with 60% of vehicle parts used in American assembly plants. The ripple effect could mean significant price hikes for consumers, according to The New York Times.
