Trump moves to protect US auto industry with 25 per cent hefty import tariffs

WASHINGTON: In a significant policy announcement from the Oval Office, President Donald Trump has declared a 25 per cent tariff on all imported vehicles entering the United States, a move he described as “very exciting” for domestic manufacturing.

The tariffs, set to take effect on April 2, will impact nearly half of all vehicles sold in the United States, including American brands assembled overseas. The wide-ranging measure aims to incentivise car manufacturers to establish more production facilities within US borders.

President Trump is bringing back MADE IN AMERICA:

25% tariff on automobiles made outside of the U.S.
$100B projected in new revenue thanks to auto tariffs
Strengthen America’s manufacturing industry pic.twitter.com/ArU44jdTn3

— The White House (@WhiteHouse) March 26, 2025

Industry experts warn that the tariffs could have far-reaching consequences. Autos Drive America, a representative group for international car manufacturers operating in the US, expressed serious concerns about the potential fallout. “The tariffs will make car production more expensive,” the group stated, “potentially leading to higher prices for consumers, reduced consumer choices, and potential job market disruptions.”

The announcement threatens to escalate trade tensions with key automotive manufacturing nations, including European countries, Japan, and South Korea. These nations export substantial numbers of vehicles to the United States and may view the tariffs as a direct challenge to their automotive industries.

Economists predict the tariffs could increase vehicle prices by thousands of dollars, adding further strain to consumers already grappling with persistent inflation. The move represents a dramatic intervention in the automotive market, potentially reshaping global car manufacturing strategies.

President Trump remained bullish about the policy, stating, “Anybody who has plants in the United States, it’s going to be good for”. As the automotive industry and global markets absorb this significant policy change, other manufacturers, including those in India, are bracing for bigger changes.

Earlier, US President Donald Trump targeted India’s auto import tariffs in a speech to Congress, stating, “India charges us auto tariffs higher than 100%,” and vowed that a reciprocal tax would take effect on April 2. He said that the US has been ripped off for decades by nearly every country on earth and vowed not to “let that happen any longer”, (ANI)