Donald Trump imposes 25% tariffs on all cars manufactured outside the United States

President Donald Trump has announced a new 25% tariff on all automobiles manufactured abroad, claiming the move will lead to “tremendous growth” in the U.S. automotive industry.

“This is the beginning of America’s Liberation Day,” Trump declared from the Oval Office on Wednesday, March 26. “If you build your car in the United States, there will be no tariffs,” he said.

Canadian and European leaders have taken to X to express their displeasure with the president’s decision as they could have negative consequences for their economies as well. U.S. automakers noted last month when similar tariffs were announced, but delayed one month, that it could take years before manufacturing could begin at the level necessary in the U.S. to avoid the tariffs.

When will the tariffs be imposed?

The new tariffs will take effect on April 2 and will be phased in gradually, starting at 2.5% before reaching the full 25%. The policy applies to all cars and trucks manufactured outside the United States and imported into the country—including vehicles made by American companies with overseas production facilities.

According to The New York Times, consumers will bear the brunt of the new tariffs, as “nearly half of the vehicles sold in the United States are imported.”

While the tariff costs are technically paid by the importing companies, economic analysts from the BBC explain that consumers ultimately foot the bill through higher prices.

Trump’s latest announcement follows a series of aggressive trade policies, including 25% tariffs on all goods from Mexico and Canada, which are expected to go into effect on April 2 as well. A twenty percent tariff on many Chinese imports has gone into effect, as well as a 25% tariff on steel and aluminum imports.

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This article was originally written in Spanish by Daniela Barrera, translated with the help of AI, and edited by Maite Knorr Evans.