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Donald Trump has confirmed that he will impose tariffs of 25 per cent on all cars not made in the US in a press conference today.
The announcement has followed White House press secretary Karoline Leavitt trailing that the US President would announce tariffs on auto imports earlier this afternoon.
“We’re signing an executive order today that’s going to lead to tremendous growth in the automobile industry,” the Republican said.
“What we’re going to be doing is a 25 per cent tariff on all cars that are not made in the United States. If they’re made in the United States, there’s absolutely no tariff.”
The President announced the tariffs earlier today
GETTY
“We have a lot of exciting things, but to me, this is one of the most exciting now – outside of one specific day, and that’s Liberation Day,” he said, looking forward towards the start date.
The tariffs are due to come into effect from April 2.
Trump added: “This is permanent. But if you build your car in the United States there is no tariff.”
As collections are due to be collected as soon as the following day, Trump insisted the policy would drive “tremendous growth” for the American car industry, feeding increased investment and employment across the nation.
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Experts have suggested that the tariffs will primarily affect brands including Hyundai and Toyota.
Others have also warned that the move could stress international relationships with countries such as Germany and South Korea.
Responding to the new tariff, President of the European Commission Ursula von der Leyen shared on X: “I deeply regret the U.S. decision to impose tariffs on EU automotive exports.
“Tariffs are taxes – bad for businesses, worse for consumers, in the US and the EU. The EU will continue to seek negotiated solutions, while safeguarding its economic interests.”
President of the European Commission Ursula von der Leyen has lashed out on X in response to Trump’s tariff on car imports
REUTERS
The measure has been announced after weeks of speculation when Trump first flirted with the idea of a 25 per cent tariff on imported vehicles in February.
Earlier this week, he teased that such a measure could come in “the very near future”.
The auto tariffs was originally meant to be one of the retaliatory taxes to be announced on Trump’s “Liberation Day” on April 2.
So far, the US has imposed a 20 per cent tax on China’s imports, a 25 per cent tariff on US neighbours Mexico and Canada, as well as a 10 per cent tax on energy products from Canada.