Tipsheet

Trump Announces Tariffs on Car Imports

Rebecca Downs
Rebecca Downs  |  March 26, 2025 6:30 PM

On Wednesday, President Donald Trump announced from the Oval Office that there will be 25 percent tariffs on all cars not made in the United States. In a move he called "very modest," the president announced that "what we're going to be doing is a 25 percent tariff on all cars that are not made in the United States." He made clear that cars made at home will have "absolutely no tariff." 

"We start off with a 2.5 percent base, which is what we were at, and we go to 25 percent," Trump continued, before also making a point about tariffs have been reported by the media. "And basically as you know, as you've been seeing, not reporting as accurately as it should be reported, because it's a massive story, businesses coming back to the United States, so that they don't have to pay tariffs."

Moments later, Trump spoke further about these tariffs, including as it relates to his plans for tax cuts, in addition to again making clear that car parts made in America "are not going to be taxed or tariffed" as well as expressing confidence that there will be "very strong policing."

"For the most part, I think it's going to lead to cars being made in one location. Right now, a car would be made here, sent to Canada, sent to Mexico, sent all over the place," Trump continued, calling that "ridiculous."

His new system, however, he called "very simple," adding that "the beauty of the 25 [percent], it's one number, it's not up or down, depending on the cost of the car, it's one number." The 25 percent number isn't just a good one because of how "very simple" it is, but what Trump predicts it will do for the American people. "And that number's going to be used to reduce debt greatly in the United States, and to build things, reduce taxes. Basically, I view it as reducing taxes and also reducing debt and within a fairly short period of time, I think we're going to have a balance sheet that's going to be outstanding," the president said. 

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As Katie also shared, the president also made other comments about tariffs, including potential plans as it relates to pharmaceuticals and also as it relates to China and the sale of TikTok. 

If this turns out to be the case, these tariffs on car parts may be a pattern for what's to come.

While the president was speaking to reporters, the Rapid Response 47 account released a thread over X with more details on these tariffs. 

"For too long, America’s automobile industry has been battered by a flood of cheap imports — threatening our domestic industrial base and exposing us to global supply chain vulnerabilities," the thread began by mentioning, also going on to note how Trump has the authority under Section 232 of the Trade Expansion Act of 1962. 

"These tariffs will fuel American ingenuity and bring our edge back," the thread concluded with, going for a hopeful message.