US President Donald Trump declares 25% tariff on all imported vehicles entering US

By  New On Air   Mar 27, 2025

US President Donald Trump has declared a 25% tariff on all imported vehicles entering the United States. The new import taxes will go into effect on April 2, the same date he plans to announce reciprocal tariffs aimed at the countries responsible for the bulk of the U.S. trade deficit.

The wide-ranging measure aims to incentivise car manufacturers to establish more production facilities within US borders. The announcement threatens to escalate trade tensions with key automotive manufacturing nations, including European countries, Japan, and South Korea.

European Commission President Ursula von der Leyen described the move as bad for businesses and worse for consumers, while Canadian Prime Minister Mark Carney labeled it a direct attack on Canadian workers. The tariffs could increase vehicle prices by thousands of dollars, adding further strain to consumers.

Mr. Trump has already placed a 20% import tax on all imports from China for its role in the production of fentanyl. He similarly placed 25% tariffs on Mexico and Canada, with a lower 10% tax on Canadian energy products. The president has also imposed 25% tariffs on all steel and aluminum imports.