WASHINGTON – Buckle up, automakers—President Donald Trump has announced plans to slap a 25% tariff on imported vehicles, with rates set to increase even further over the next year. The move, aimed at pushing companies to relocate production to the U.S., is expected to shake up the global auto industry.
Speaking from his Mar-a-Lago estate, Trump confirmed that a full announcement is coming on April 2, when the administration will roll out reciprocal tariffs targeting countries that impose taxes on U.S. imports.
“It will be 25% and higher, and it will go very substantially higher over a course of a year,” Trump declared during a press conference. However, he added that companies will have a grace period to move operations stateside before facing steeper penalties.
“When they come into the United States, and they have their plant or factory here, there is no tariff, so we want to give them a little bit of a chance,” he explained.
The looming tariffs could have major consequences for global automakers, many of whom rely on international supply chains. With the official policy shift just weeks away, the industry is bracing for impact.
