Trump announces 25 percent tariffs on all vehicle imports

President Donald Trump announced his latest round of tariffs on Wednesday, telling reporters at a press conference that the US would levy duties of 25 percent on all imports of fully-assembled vehicles.

The carve-out for imports of auto parts is meant to be a lifeline for the US auto industry. Wednesday’s announcement of duties on assembled vehicles was originally set to be part of the president’s planned April 2 “liberation day” tariff announcement, accompanied by similar tariffs on parts.

“What we’re gonna be doing is a 25 percent tariff on all cars that are not made in the United States,” declared the president in the Oval Office. “This will continue to spur growth.”

“I think our automobile business will flourish like it’s never flourished before,”

One reporter asked Trump during the event whether any conditions would cause him to roll the newest tariffs back, or whether they’d remain in place through the end of his term in 2029.

“Oh, this is permanent, yeah. Hundred percent,” Trump responded.

The press briefing at which the tariffs were announced was originally scheduled for 4pm ET; it was delayed, however, and took place well after the market closed. Auto stocks were sliding throughout the day ahead of his remarks.

Even some US automakers rely at least partially on plants that produce vehicles overseas; in the short term, those companies will feel a sharp financial squeeze from the president’s announcement. GM, Ford, and Stellantis all manufacture some vehicles outside of the US, including in Canada and Mexico. Roughly half of all cars sold in the US are imported.

The president’s free-wheeling tariff announcements have set off alarm bells in financial centers and capitals around the world, as even close US allies feel the sting of the president’s accusatory language and vows to spur economic growth with protectionist trade policies. Auto tariffs were always expected to be a central part of his trade plan, given his desire to appeal to voters in the Rust Belt with promises to return manufacturing plants to the states.

Trump has also sought to use tariffs to punish one of the US’s main geopolitical rivals, China, over the supply of fentanyl to the United States.

In the coming days, the US is expected to introduce further measures targeting imports of computer chips, pharmaceutical drugs, copper and lumber, plans which the president reiterated at his event Wednesday afternoon.

He previously targeted Mexico and Canada in particular with tariffs on some auto imports and other goods, though Trump issued waivers for some duties that are set to expire in April. The Trump administration also put tariffs of 25 percent on aluminum and steel imports.

The Premier of Ontario, which is home to Canada’s auto industry, responded on Twitter and in a comment to reporters.

“I’m in full support of preparing retaliatory tariffs,” Doug Ford said on Wednesday, according to CTV News. “Tariff for tariff. But, we want to see what [Trump’s] going to do on April 2.”

Most economists expect consumer prices on vehicles and a range of other goods, potentially including energy, to rise as a result of the president’s protectionist trade stance. The White House has remained adamant that the president believes such a price hike will not occur as it seeks to battle residual high inflation.

The president predicted powerful economic growth but did not directly answer a question from a reporter on Wednesday who asked him whether he could reassure Americans that a long-term price increase was not on the horizon.

States with major ports are also raising alarms about the effects that tariffs will have on shipping centers, which rely on foreign business to support thousands of jobs — states including Maryland, home to the Port of Baltimore, which is still recovering from an economic hit caused by the collapse of the Francis Scott Key Bridge.