On Tuesday, President Donald Trump declared that his administration would introduce a 25% tariff on imported cars starting April 2. This initiative, he explained, aims to balance trade tariffs imposed by nations that tax American exports.
“I’ll probably make it official on April 2, but it will be around 25%,” Trump announced from the Oval Office. He had hinted at this decision on February 14 when he signed a memorandum to impose "reciprocal tariffs" on countries charging high fees on U.S. products.
Originally planned for April 1, Trump postponed the announcement by a day due to personal reasons. “I'm a bit superstitious,” he admitted. “We had a plan for April 1, but I said, let’s do it on the 2nd. Do you know how much money that costs? It costs a lot, just for that day, but we'll do it on the 2nd,” he elaborated, as reported by Telemundo.
The tariffs won’t take effect immediately but will be implemented over "weeks" or "months," according to the president. The initial focus will be on countries with which the U.S. holds significant trade deficits, such as the European Union (EU) and Japan.
Trump views the new tariffs as a matter of economic "fairness." “We will charge the same that a country charges us, no more, no less,” he stated. He also criticized the EU for employing VAT (Value Added Tax) as a “hidden tariff” that disadvantages American products in the European market.
The auto industry is expected to be significantly impacted. Currently, the U.S. imposes a 2.5% tariff on imported vehicles, while the EU enforces a 10% duty, plus a community VAT ranging from 17% to 27% depending on the country. The new U.S. policy would raise the total fee on a vehicle to as much as 27%.
Last week, Trump also warned the BRICS nations (Brazil, Russia, India, China, and South Africa) that a 100% tariff could be applied if they attempt to undermine the dollar in global trade. “If the BRICS play games with the dollar, we’ll hit them with a 100% tariff the same day,” he asserted. This move is part of Trump's strategy to use tariffs as leverage in negotiations on trade, immigration, and security.
Understanding the Impact of Trump's New Tariff Policy
Why is Trump imposing a 25% tariff on imported cars?
President Trump aims to balance trade tariffs with countries that impose high taxes on American exports, ensuring economic "fairness."
When will the new tariffs take effect?
The tariffs will not be immediate and are expected to be implemented over a period of "weeks" or "months" after the official announcement.
Which countries will be affected first by the tariffs?
Countries with which the U.S. maintains a significant trade deficit, like the European Union and Japan, will be the initial targets.