Trump Announces 25 Percent Tariffs on Imported Cars
- The tariffs will go into effect on April 3, and will apply to cars and trucks as well as key parts like engines, transmissions and electrical components that are shipped into the United States.
- That includes vehicles from American brands whose automobiles are assembled outside of the country, including in Canada or Mexico.
Ursula von der Leyen, president of the European Commission, says in a statement that she deeply regrets the U.S. decision to impose tariffs on European automotive exports. She also says that Europe will “assess this announcement, together with other measures the U.S. is envisaging in the next days,” and will continue to seek a negotiated solution.
Cox assessment effects on the US auto industry.
- This will modestly impact GDP (auto industry 3-4% GDP), but have a higher impact on CPI (~7% weight from both new and used autos, another 3% auto insurance). According to Tax Foundation a -0.1% impact on GDP.
- About ~45% of sold cars in the US are imported, nearly 60 percent of the parts in vehicles assembled in the United States.
https://www.nytimes.com/live/2025/03/26/business/trump-tariffs-auto-cars--