Trump Defends 25% Auto Tariffs, Proposes Tax Breaks for U.S.-Made Cars

The tariffs, set to take effect on April 3, aim to boost domestic production but are expected to raise car prices and disrupt global supply chains.

Donald Trump reaffirmed the 25% tariff on imported cars and light trucks, effective April 3, dismissing concerns about rising car prices.
The tariffs are anticipated to increase vehicle prices by $5,000 to $10,000, potentially reducing sales and causing layoffs in the U.S. auto industry.
Trump proposed a tax deduction for auto loan interest, exclusively for vehicles manufactured in the United States, to encourage domestic purchases.
Foreign nations, including Japan, South Korea, and China, are strengthening economic ties and advancing free trade agreements in response to U.S. trade measures.
Tariffs on auto parts under the USMCA will be delayed, creating uncertainty for North American supply chains reliant on imported components.