2:52 28 March 2025
Trump imposes new car tariffs
U.S. President Donald Trump has announced a 25% tariff on all imported cars and light trucks, set to take effect on April 2. The tariff, up from the previous 2.5%, will not apply to cars made in the U.S. Trump claims the move will encourage foreign carmakers to set up production in the U.S. and generate $100 billion in revenue. While the tariffs exclude some car parts under the USMCA agreement, others, including engines and transmissions, will be affected. Poland, while not a major exporter of finished cars, sent $311 million worth of parts abroad in 2024. Trump also plans further tariffs on medicine and timber imports. Despite a delay for Mexico and Canada, economists predict the tariffs could raise car prices by up to $12,000.
