Trump imposes 25% tariffs on imported cars and trucks
US President Donald Trump announced on Wednesday that, commencing 2nd April, he will impose a 25% tariff on all cars and light trucks imported from abroad. The current rate is 2.5%.
— We'll effectively be charging a 25% tariff. But if you build your car in the United States, there is no tariff, — Donald Trump stated, announcing his decision in the Oval Office and signing the order on this matter.
The tariffs are set to commence on 2nd April, along with "reciprocal tariffs," theoretically intended to equalise tariff rates with those used by other countries. Trump described this day as "America's Liberation Day."
Donald Trump announces new tariffs
Trump assessed that this decision will lead foreign companies to increase car production in the USA, and other companies to relocate their factories there.
According to Trump, the tariffs are expected to bring €92 billion to the budget. They will be applied in addition to the existing tariffs. Trump declared that the tariffs are "permanent" and that there will be no exemptions from them.
The text of the order has not yet been published. According to the Deputy White House spokesperson, quoted by Reuters, "for now", car parts under the USMCA agreement with Canada and Mexico are to be excluded from the tariffs. A photograph of the document signed by Trump reveals that certain car parts, such as engines and engine components, electronic parts, steering system elements, and gearboxes, will still be subject to tariffs.
The President also announced that he will soon impose additional tariffs on the import of medicines and timber.
Once again, he complained about the European Union's trade practices, claiming that the sale of American cars in Europe is "almost impossible" and accused it of politically motivated antitrust actions against American digital giants.
He also claimed to understand the opinion expressed in a recently revealed group chat on Signal by US Vice President J.D. Vance, who opposed a strike on the Houthis in Yemen, as reopening the trade route through the Red Sea would primarily benefit Europe.
Trump's new tariffs: here's who they will hit
According to data from the Tradeimex portal, the largest exporter of cars to the USA is Mexico, which accounts for nearly 25% of cars imported there. Like Canada (13%), it hosts factories of American car manufacturers. Japan (18.6%) and South Korea (17.3%) follow on the list. Among European countries, the largest exporters are Germany, the United Kingdom, Slovakia, Italy, and Sweden.
Poland is not a significant source of imported finished cars, but it exports a large quantity of parts and accessories, with a value amounting to €289 million in 2024.
In early March, Trump decided to delay the implementation of tariffs on cars and parts from Mexico and Canada, following requests from American automotive corporations, which warned that the tariffs would significantly increase both the cost of car production—since parts cross the border multiple times during production—and the cost for American consumers. Economists predicted that tariffs on Canada and Mexico alone could raise car prices by up to €11,000.
According to CBS television, approximately half of the cars in the USA are imported vehicles.