U.S. President Donald Trump has signaled that auto tariffs could take effect on April 2, adding to a series of trade actions since his return to office. The move targets foreign vehicle imports as part of his push to reshape global trade and boost U.S. manufacturing.
Trump on Friday hinted at tariffs on foreign automobiles, saying they would be introduced the day after his cabinet submits trade policy reports. "Maybe around April 2," he told reporters, emphasizing his long-standing criticism of U.S. auto trade imbalances.
Since taking office, Trump has:
🔹 Imposed a 10% tariff on all imports from China
🔹 Delayed for a month a 25% tariff on Mexican and non-energy Canadian imports
🔹 Set March 12 for 25% tariffs on imported steel and aluminum
🔹 Ordered "reciprocal tariffs" on countries taxing U.S. goods
Trump argues these measures will boost U.S. manufacturing and create fairer trade conditions. However, businesses and analysts warn of economic uncertainty, inflation risks, and global trade tensions.
U.S. carmakers have expressed mixed reactions to the proposed auto tariffs. Ford CEO Jim Farley welcomed the review of foreign vehicle imports but admitted tariffs have added "a lot of cost and chaos." The American Automotive Policy Council, representing Ford, GM, and Stellantis, insists that vehicles meeting USMCA trade requirements should not face additional tariffs.
Under the US-Canada-Mexico Agreement (USMCA), vehicles with at least 75% of their parts sourced from North America are exempt from tariffs. However, Trump’s new tariff push could be a strategic move ahead of USMCA’s scheduled review in 2026. Analysts see it as an opening bid for renegotiation, despite Trump previously calling USMCA “the greatest” trade deal ever.
Trump’s latest directive orders economic advisers to draft reciprocal tariffs, due for review by April 1. With trade policies evolving rapidly, businesses and global partners are watching closely for what comes next in Trump's tariff strategy.
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