Trump Announces 25% Tariff on All Imported Cars, Effective April 2
The new tariffs, targeting vehicles not made in the U.S., are set to increase car costs and disrupt global trade as Canada, the EU, and industry leaders voice strong opposition.
- President Donald Trump has confirmed a 25% tariff on all imported cars, raising the total tax to 27.5%, with implementation beginning April 2, 2025.
- The tariffs will apply to all vehicles not manufactured in the United States, with exceptions for Canadian and Mexican-assembled vehicles, which will only be taxed on non-U.S.-sourced parts.
- Industry experts warn of significant price increases for cars in the U.S., potential job losses in the automotive sector, and disruptions to North American supply chains.
- The European automotive industry, particularly Germany, faces substantial economic risks as the U.S. is a major market for European premium vehicles.
- Canada's Prime Minister Mark Carney has condemned the tariffs as a direct attack on Canadian workers, while retaliatory measures from affected nations are anticipated to escalate trade tensions.
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