Trump Proposes 25 Percent Automobile Tariffs

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Report Trump Proposes 25 Percent Automobile Tariffs The 25 percent levy is expected to come one day after sweeping “reciprocal” duties go into effect. An illustration of Alexandra Sharp, World Brief newsletter writer Alexandra Sharp By Alexandra Sharp , the World Brief writer at Foreign Policy . A driver changes lanes during the Los Angeles evening rush hour commute. A driver changes lanes during the Los Angeles evening rush hour commute in Alhambra, California, on March 26. Frederic J. Brown/AFP via Getty Images My FP: Follow topics and authors to get straight to what you like. Exclusively for FP subscribers. Subscribe Now | Log In Economics United States March 27, 2025, 5:50 PM Comment icon View Comments ( 0 ) U.S. President Donald Trump announced 25 percent tariffs on imported automobiles on Wednesday, to begin on April 3. While the White House expects to raise $100 billion in revenue annually by promoting domestic car manufacturing, economists fear that the latest trade war escalation will strain global supply chains and hike inflation. Trump’s Second Term Ongoing reports and analysis If Trump’s taxes are fully passed onto consumers and not swallowed by carmakers, then the average price for imported vehicles could skyrocket by $12,500. However, a partial exemption will be given to vehicles and car parts that comply with the U.S.-Mexico-Canada Agreement’s rules of origin—but only for what is produced in the United States. U.S. President Donald Trump announced 25 percent tariffs on imported automobiles on Wednesday, to begin on April 3. While the White House expects to raise $100 billion in revenue annually by promoting domestic car manufacturing, economists fear that the latest trade war escalation will strain global supply chains and hike inflation. Trending Articles Deadly 7.7 Magnitude Earthquake Rocks Myanmar The natural disaster has struck the country at a time when it is already reeling from a humanitarian crisis. Powered By Advertisement Deadly 7.7 Magnitude Earthquake Rocks Myanmar X Trump’s Second Term Ongoing reports and analysis If Trump’s taxes are fully passed onto consumers and not swallowed by carmakers, then the average price for imported vehicles could skyrocket by $12,500. However, a partial exemption will be given to vehicles and car parts that comply with the U.S.-Mexico-Canada Agreement’s rules of origin—but only for what is produced in the United States. Auto tariffs are just the latest in a slew of White House duties aimed at virtually all of Washington’s trade partners. Already, the Trump administration has imposed: 20 percent tariffs on Chinese imports, on top of 25 percent duties already in place, though Trump on Wednesday said he would consider reducing these levies if Beijing approves the sale of TikTok’s operations to a U.S. company; 25 percent tariffs on Mexican and Canadian imports, with a lower 10 percent tax on Canadian energy ; and 25 percent tariffs on all steel and aluminum imports. That is not including the sweeping “ reciprocal ” tariffs that the United States will impose on April 2, the day before auto levies go into effect; impending 25 percent tariffs on all goods from countries that import oil from Venezuela, even though the United States is one of those countries; a threatened 200 percent tariff on alcoholic beverages from the European Union; and expected duties on computer chips, pharmaceuticals, lumber, and copper. Read more in today’s World Brief: Trump’s Proposed Auto Tariffs Plunge Wall Street, Foreign Markets Into Turmoil . This post is part of FP’s ongoing coverage of the Trump administration . Follow along here . My FP: Follow topics and authors to get straight to what you like. Exclusively for FP subscribers. Subscribe Now | Log In Economics United States Alexandra Sharp is the World Brief writer at Foreign Policy . X: @AlexandraSSharp Read More On Donald Trump | Economics | Trade Policy & Agreements | United States Join the Conversation Commenting on this and other recent articles is just one benefit of a Foreign Policy subscription. Already a subscriber? Log In . Subscribe Subscribe View 0 Comments Join the Conversation Join the conversation on this and other recent Foreign Policy articles when you subscribe now. Subscribe Subscribe Not your account? Log out View 0 Comments Join the Conversation Please follow our comment guidelines , stay on topic, and be civil, courteous, and respectful of others’ beliefs. You are commenting as . Change your username | Log out Change your username: Username I agree to abide by FP’s comment guidelines . (Required) Confirm CANCEL Confirm your username to get started. The default username below has been generated using the first name and last initial on your FP subscriber account. Usernames may be updated at any time and must not contain inappropriate or offensive language. Username I agree to abide by FP’s comment guidelines . (Required) Confirm