Mr. Trump imposes a 25% import tax on all cars into the U.S.
U.S. President Donald Trump has just announced a plan to impose a 25% import tax on all cars not produced in the U.S., starting from April 2, 2025. This tax rate is ten times higher than the current rate and will apply to passenger cars and light trucks from abroad, expected to bring in more than $100 billion annually to the U.S. budget. However, this move could increase car prices by thousands of dollars, negatively affecting sales and jobs in the automotive industry, which heavily relies on imported components.
In 2024, the U.S. imported $474 billion worth of automotive-related products, primarily from Mexico, Japan, South Korea, Canada, and Germany. This decision caused the stock prices of American car manufacturers to drop, raising concerns about a shock to the global automotive industry. Since taking office, Mr. Trump has continuously changed tax policies, imposing a 25% tax on aluminum and steel and an additional 20% on China, while postponing taxes on Canada and Mexico. He is also expected to announce retaliatory tariffs against trade partners on April 2, but promises that the tax rates may be lighter than anticipated.
