**Trump Imposes 25% Tariff on Imported Cars to the U.S.**
On March 26, 2025, former President Donald Trump announced a significant policy change aimed at boosting the American automotive industry. By signing an executive order, Trump introduced a 25% tariff on all cars imported into the United States. According to Trump, this move is to reclaim financial resources that he claims have been lost on account of foreign imports.
“This marks the beginning of Liberation Day in America. We are taking back money that has been taken from us,” declared Trump from the Oval Office. He elaborated that vehicles manufactured within the United States would not be subjected to this tariff. While the country previously had a baseline tariff of 2.5%, Trump decided to elevate it to 25%.
Trump emphasized that these tariffs have already encouraged some auto manufacturers to consider opening plants in the U.S., claiming this as a success following his electoral win in October 2024. He also hinted at future tariff reciprocity measures against other countries, scheduled to start from April 2, 2025.
In a related development, Marcelo Luis Ebrard Casaubón, Mexico’s Secretary of Economy, publicly acknowledged his presence in Washington, D.C., for discussions with Howard Lutnick, the U.S. Secretary of Commerce. This preceded Trump’s announcement, indicating that high-level dialogues were ongoing regarding the tariff’s implications.
Furthermore, Harrison Fields, the White House Deputy Press Secretary, clarified that auto parts compliant with the United States-Mexico-Canada Agreement (USMCA) would be temporarily exempt from these tariffs. The exemption will persist until a new procedure is developed for implementing tariffs on the non-American content of auto parts.
**Secondary Article: Global Reaction to U.S. Tariff on Imported Cars**
Following the news of a 25% tariff on imported vehicles, the global response has been swift and varied. Several key players in the automotive industry have raised concerns over the potential ripple effects on global trade.
European Union representatives have warned that the tariff could strain economic relations and have promised to review their trade policy with the U.S. in response. In Asia, Japan, a major exporter of vehicles to the U.S., expressed disappointment, with government officials considering discussions on alternative measures to mitigate the impact on their automobile industry.
On the other hand, domestic automotive manufacturers welcomed Trump’s decision, anticipating increased demand for locally produced vehicles. However, experts caution that while some jobs may return, consumers could face higher car prices, affecting overall market dynamics.
In the coming weeks, further clarifications and responses from key global stakeholders are expected as they navigate the consequences of this significant trade adjustment.