Washington, D.C. – U.S. President Donald Trump announced a 25% tariff on all foreign-made cars Wednesday, intensifying trade disputes with key partners. The tariffs, set to take effect on April 2, will apply to vehicles not manufactured in the United States.
“If they’re made in the United States, it is absolutely no tariff,” Trump stated at the White House.
The move follows previous tariffs on steel, aluminum, and imports from Canada, Mexico, and China. Market reactions were swift, with the Nasdaq dropping 2% and General Motors shares sliding 3.1%.
The decision could strain relations with Japan, South Korea, and Germany, major auto suppliers to the U.S. Experts warn the tariffs may drive up car prices and impact jobs. Trump has hinted at further trade measures on pharmaceuticals and lumber, keeping global markets on edge as April 2, dubbed “Liberation Day,” approaches.
