Trump announces 25% tariffs on foreign made cars: Going to be permanent
US President Donald Trump on Wednesday announced sweeping plans to impose a 25 per cent tariff on all automobiles imported into the United States, declaring.
That the measure will be permanent. The tariffs will take effect on April 2, with collection beginning on April 3. “What we’re going to be doing is a 25 per cent tariff on all cars that are not made in the United States. This will be permanent,” Trump said in the Oval Office. “We start off with a 2.5 per cent base, which is what we’re at, and go to 25 per cent.” He claimed the move would drive economic growth, adding, “This will continue to spur growth like you haven’t seen before. But if you build your car in the United States, there is no tariff.”
The announcement comes just days before Trump is expected to unveil a broader set of trade measures. On April 2- a date he has dubbed “liberation day” – he is set to introduce a wide range of so-called reciprocal tariffs, targeting imported goods that his administration argues are unfairly taxed by US trading partners.
While Trump has long advocated tariffs as a tool to address trade imbalances, his approach has led to market volatility and concern among investors, corporate leaders, and consumers.
In February, Trump had floated the idea of a 25 per cent tariff on imported vehicles without providing details. On Monday, he hinted that the new auto industry levies would be coming “in the very near future”.
Trump, who sees tariffs as a means to generate revenue and revive the US industrial sector, suggested that some of the upcoming reciprocal tariffs might be softer than initially expected. “We’re going to make it very lenient,” he said. “I think people will be very surprised. It’ll be, in many cases, less than the tariff they’ve been charging for decades.”
Amid speculation over Tesla CEO Elon Musk’s role in the decision, Trump clarified that the DOGE chief had no involvement in shaping the auto tariff policy. “Musk did not advise on auto tariffs,” he said. “He has never asked me for a favour,” Trump said.
The Republican also mentioned that he had consulted major automakers about the policy and asserted that the tariffs would be “net neutral or maybe good for Tesla”.
‘MAY GIVE CHINA A REDUCTION IN TARIFFS’
Donald Trump on Wednesday suggested he may offer China a slight reduction in tariffs to secure a deal regarding the Chinese-owned social media platform TikTok. He also indicated that he would likely extend the deadline for an agreement if necessary.
“With respect to TikTok, and China is going to have to play a role in that, possibly in the form of an approval, maybe, and I think they’ll do that. Maybe I’ll give them a little reduction in tariffs or something to get it done,” Trump told reporters.
The comments mark a shift from Trump’s earlier stance, where he had threatened additional tariffs on Chinese imports while announcing reciprocal tariffs on other countries, including India. His administration has been increasing trade restrictions on Beijing, citing economic and national security concerns, with TikTok’s Chinese ownership being a major point of contention.
Addressing the ongoing negotiations, Trump said there were “numerous ways to buy TikTok” and noted that there was “a lot of interest in TikTok”.