Trump wants 25 percent import tax on cars made outside the US

This article was last updated on March 27, 2025

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Trump wants 25 percent import tax on cars made outside the US

The United States announces import duties of 25 percent on cars and car parts from abroad. US President Donald Trump shared that plan last night during a press conference.

Trump says that the levy will be announced on 2 April. A day later the rates are actually calculated.

This would coincide this measure with other, previously announced import duties. This is about so -called reciprocal rates, where Trump threatens to impose the same rates on his trading partners as they impose on American import.

European and Asian cars

The US must yield the US 100 billion dollars annually, but Trump also wants to favor the American car industry. It is the president that Americans buy foreign cars more often than the other way around. According to him, Europe and Asia would raise too many barriers for buying American cars. Trump calls that unfair.

Cars from Germany, Japan and Korea in particular are popular in the US. In addition, many cars are assembled for the American market in Mexico and Canada. It is therefore expected that these cars will become more expensive for the American consumer, because the importers will pass on the levy to their customers.

Counterfeit

In a response, the European Commission announced that it “regretted” the measures. Commission President Ursula von der Leyen says he wants to continue to negotiate with the US government about trade, but at the same time emphasizes that it will protect the economic interests of the EU.

Two weeks ago, Trump introduced import rates on aluminum and steel from Europe. Immediately afterwards the EU announced extra import duties on American products such as jeans and Bourbon. They would start on April 1, but were postponed until mid -April.

Canadian Prime Minister Mark Carney sees Trump’s announcement as “a direct attack on the workers” in Canada. The American Northern Neighborhood produces many car parts and assembles cars. According to The New York Times, of that is 80 to 90 percent exported.

At the same press conference, Trump said that there will also be import duties on medicines, chips and wood. Nothing is yet known about the level of the rate and when they have to come into force.