Trump Announces 25% Tariff on All Imported Vehicles

Local time, March 26 — U.S. President Donald Trump signed an executive order at the White House on Monday, announcing a 25% tariff on all imported cars. The measures are set to take effect on April 2.
Trump stated that the automotive tariffs would be permanent. He emphasized that vehicles manufactured in the U.S. would be exempt from the tariffs.
During the announcement, Trump also claimed that Tesla CEO Elon Musk had not provided any suggestions regarding the auto tariffs nor sought benefits from them. Additionally, Trump revealed plans to impose tariffs on lumber and pharmaceuticals.
White House Spokesperson: Tariff Exemptions for USMCA-Compliant Parts
Harrison Fields, White House spokesperson, clarified that the 25% tariff would apply to imported passenger cars, light trucks, and critical automotive components (engines, transmissions, powertrain parts, and electrical components). Fields noted that additional tariffs could be imposed on other parts if necessary.
He stated that automotive parts complying with the United States-Mexico-Canada Agreement (USMCA) would remain exempt from tariffs until further coordination between the Commerce Secretary and U.S. Customs and Border Protection.
Canadian Prime Minister Vows Retaliatory Measures
Canadian Prime Minister Justin Trudeau responded that Canada would swiftly react to the new U.S. auto tariffs and might implement retaliatory tariffs. Trudeau described the tariffs as a “direct attack on Canadian workers” and confirmed plans to speak with Trump soon.