Trump Plans New Tariffs on Cars, Keeps Trade Pressure High
According to Reuters, U.S. President Donald Trump is pushing ahead with his plan to impose new tariffs, this time targeting cars.
He hinted that these tariffs could start as early as April 2, just one day after his advisors are set to deliver reports on trade options. Trump has been very active on trade since taking office in January, introducing or threatening tariffs on goods from China, Mexico, Canada, and other countries.
Trump said during a meeting in the Oval Office that auto tariffs were coming soon. “Maybe around April 2,” he told reporters, adding that he wanted to act even sooner but decided to wait. Reuters notes that this is part of Trump’s broader effort to reshape global trade and protect American industries.
So far, Trump has already imposed a 10% tariff on all imports from China, delayed 25% tariffs on goods from Mexico and Canada, and set a March 12 start date for 25% tariffs on steel and aluminum imports. On Thursday, he also ordered his team to create plans for “reciprocal tariffs,” meaning the U.S. would charge the same taxes on imports as other countries charge on U.S. goods.
Reuters explains that Trump believes these tariffs will help American businesses compete globally and bring manufacturing jobs back to the U.S. However, his actions have caused confusion for companies, upset U.S. allies, and raised concerns about higher prices for consumers.
The auto industry is a particular focus for Trump. He has long complained that other countries, like the European Union, charge much higher tariffs on U.S. cars than the U.S. charges on theirs.
For example, the EU taxes U.S. car imports at 10%, while the U.S. only charges 2.5% on foreign cars. However, the U.S. does impose a 25% tariff on imported pickup trucks, which are highly profitable.
Ford CEO Jim Farley praised Trump’s focus on auto tariffs, calling it a step toward strengthening the U.S. auto industry. But he also admitted that Trump’s trade policies have created “a lot of cost and a lot of chaos” for businesses.
Reuters reports that nearly 25% of new cars sold in the U.S. last year were imported, meaning they could be affected by these tariffs. However, cars made in the U.S., Canada, or Mexico under the USMCA trade deal (which Trump renegotiated in his first term) are exempt from tariffs if at least 75% of their parts come from these countries.
Some analysts think Trump’s talk of new tariffs is a way to pressure Canada and Mexico into renegotiating the USMCA deal, which is up for review in 2026. Trump has called USMCA the “greatest” trade deal ever, but he seems eager to make further changes.
In the meantime, businesses and consumers are left wondering what these tariffs will mean for prices and jobs. While Trump’s supporters believe his policies will help American workers, critics worry they could lead to higher costs and trade wars.
As Reuters highlights, the coming weeks will be crucial as Trump’s team finalizes its plans and the world waits to see what happens next.
Credit : Reuters