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27 Mar 2025
President Trump Announces a 25% Tariff on All Imported Cars
On March 26, U.S. President Donald Trump signed an executive order at the White House, announcing a 25% tariff on all imported cars. The measure will take effect on April 2.
Trump stated that the car tariff would be permanent, adding that vehicles manufactured in the U.S. would be exempt from the tariff.
He also mentioned that Tesla CEO Elon Musk had not made any suggestions or sought any benefits regarding the car tariffs.
On the same day, Trump also announced that the U.S. would impose tariffs on timber and pharmaceuticals.
1. White House Spokesperson: Auto Parts That Comply with the USMCA Will Be Exempt from Tariffs
White House spokesperson Harrison Fields clarified that the 25% tariff would apply to imported passenger cars, light trucks, and key automotive parts (including engines, transmissions, powertrain components, and electrical parts). Additional tariffs could be added to other parts as necessary.
Fields confirmed that auto parts compliant with the United States-Mexico-Canada Agreement (USMCA) would continue to be exempt from tariffs until consultations between the U.S. Secretary of Commerce and Customs and Border Protection are concluded.
2. Canadian Prime Minister: Potential Retaliatory Tariffs
Canadian Prime Minister Justin Trudeau stated that Canada would soon respond to the new U.S. car tariffs, and retaliatory tariffs could be imposed. Trudeau indicated that he expected to speak with President Trump shortly.
He emphasized that the car tariffs announced by Trump were a direct attack on Canadian workers.
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