Trump sets sights on April for automotive tariffs
U.S. President Donald Trump speaks as he signs an executive order on halting federal funds for schools and universities that impose coronavirus vaccine mandates in the Oval Office of the White House in Washington, DC, on Feb. 14, 2025. (AFP Photo)
U.S. President Donald Trump plans to introduce tariffs on vehicle imports by around April 2, he announced on Friday. However, he did not clarify whether the tariffs would affect all auto imports.
Since his inauguration on Jan. 20, Trump has taken aim at allies and adversaries alike with threats of fresh duties. He has referred to tariffs as a way to raise revenue, remedy trade imbalances, and pressure countries to act on U.S. concerns.
Experts have warned that Americans often pay tariffs on U.S. imports, not foreign exporters. Asked when he might unveil auto tariffs, Trump said, “Maybe around Apr. 2.” He did not provide further details on Friday.
About 50% of the cars sold in the United States are manufactured within the country. About half of the imports come from Mexico and Canada, and the other half come from other major auto-producing countries. This latter group is led by Japan, South Korea, and Germany, with Britain, Italy and Sweden a source of a smaller volume of imports.
Automotive sector calls for excluding Canada, Mexico from tariffs
In recent days, Ford CEO Jim Farley has blasted a proposed Trump tariff of 25% on Mexico and Canada, noting that it disadvantages U.S. companies that have integrated their supply chains across North America under trade agreements, including the United States-Mexico-Canada Agreement (USMCA) negotiated in the first Trump administration.
On Feb. 3, the White House suspended the tariffs for 30 days following moves from Canada and Mexico on border security and fentanyl policies.
Levies targeting the auto sector would come after the president recently firmed up plans for tariffs on all steel and aluminum imports beginning March 12. He has previously promised tariffs on semiconductors, steel, oil and gas.
On Thursday, in a move broadening trade conflicts, Trump launched plans for “reciprocal tariffs” that could hit all U.S. trading partners on a country-by-country basis.
The American Automotive Policy Council, representing Detroit automakers General Motors, Ford, and Stellantis, has called for Trump to drop proposed tariffs on Mexico and Canada.
“We support President Trump’s efforts to consider the entire global trade situation, including both tariff and non-tariff barriers,” said AAPC President Matt Blunt on Thursday in response to the announcement on reciprocal tariffs. “In the meantime, Ford, GM, and Stellantis continue to believe that vehicles and auto parts that meet the USMCA requirements should not be subject to additional tariffs.”
The AAPC did not immediately respond to a request for comment on Friday.
