Trump Set to Announce New Tariffs on Auto Imports

US President Donald Trump is set to unveil new tariffs on automotive imports at a press conference on Wednesday, a move expected to intensify global trade tensions.

The White House has not disclosed specific details on the scope of the tariffs, including whether exemptions will apply to vehicles or parts produced under the US-Canada-Mexico Agreement. However, Trump has indicated that tariffs could reach as high as 25%.

On Monday, Trump hinted that the auto tariffs could be introduced this week, ahead of a broader set of reciprocal trade measures targeting countries contributing to the US trade deficit. These additional tariffs are expected to be announced on April 2.

Industry analysts believe the administration may justify the new levies using an investigation Trump relied on during his first term. The announcement has already caused US-listed automaker stocks to drop, with concerns that the tariffs could disrupt an already volatile global automotive industry.

Experts from the Center for Automotive Research warn that the tariffs could lead to higher car prices, potentially increasing costs for consumers by thousands of dollars. This could also reduce new vehicle sales and result in job losses, given the US automotive sector’s heavy reliance on imported parts.

In 2024, the US imported $474 billion worth of automotive products, including $220 billion in passenger cars. Trump’s latest trade move is expected to have significant implications for the industry, both domestically and globally.