What do the Trump tariffs mean for imported car prices?

President Donald Trump has announced further details of the next stage of his economic agenda, introducing a series of “reciprocal tariffs” on trading partners around the world.

“It’s our declaration of economic independence,” Trump said in the Rose Garden on Wednesday, claiming that tariffs would help to “reduce our taxes and pay down our national debt.”

The topic of imported automobiles was mentioned specifically by Trump, who has pledged to impose a 25% tariff on all cars made outside the USA. He explained: “Effective midnight, we will impose a 25% tariff on all foreign-made automobiles.”

Trump is attempting to bolster the American motor industry but the tariffs will undoubtedly affect the price of foreign-made cars for consumers in the United States. The 25% tariff is applicable on top of the national reciprocal tariffs announced on Wednesday. For example, cars from Japan will be hit with a 24% ‘reciprocal tariff’ and a 25% car-specific tariff. This will mean a huge price increase for buyers.

In his speech, Trump insisted that he had been generous with his plans. He explained: “We will charge them approximately half of what they have been charging us. So the tariffs will be not a full reciprocal, I could have done that, but it would have been tough for a lot of countries.”

How much are the tariffs on China and Canada?

Ahead of the announcement, the moves to impose tariffs on China and Canada were among the most surprisingly of Trump’s pledges. China and Canada were, respectively, the second- and third-biggest trading partners for the United States in 2025.

China accounted for a massive $438.9 billion of US imports last year, while Canada contributed $412.7 billion. The only country with a bigger import balance was Mexico, which stood at $505.9 billion. In total Mexico, China and Canada accounted for 42% of all US imports in 2024.

The fact sheet handed out by Trump’s team in the Rose Garden listed the reciprocal tariff rates for a selection of countries with trading relationship with the United States. In it, China is allocated a 34% tariff but a tariff rate for Canada is not listed.

In his Rose Garden speech on Wednesday Trump insisted that his tariffs are designed to boost conditions for Americans and ensure that companies are encouraged to build factors and create jobs in the United States, rather than simply imported ready-made products.

“For years, hard-working American citizens were forced to sit on the sidelines as other nations got rich and powerful, much of it at our expense. But now it’s our turn to prosper,” Trump claimed.

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