Trump imposes 25% tariffs on all non-US-made cars

Tariff plans come into effect on April 2, which could cause price surges

President Trump is escalating his trade war, and millions can pay the price as he announces 25% tariffs on all vehicles not set by the United States. This marks a significant upgrade of it, as it seems to be suitable not only for Canada and Mexico, but also for the world.

Trump said in his speech today that the move will stimulate growth and bring back automotive jobs that have been sent to other countries. He also said consumers have the option to buy their favorite gasoline, electric, hybrid vehicle or any other type of vehicle.

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Trump went on to say the auto industry will “thrive like never before.” But, as tariffs are expected to generate $100 billion in new revenue, consumers are likely to get the short end of the stick. Despite what the government says, foreign countries don’t pay this payment, companies will do so, and they may transfer the additional costs to you, consumers.

The White House has since released additional information on how to apply for tariffs. According to the official statement, the 25% tariff will target imported passenger cars, including sedans, SUVs, crossovers, minivans, vans, light trucks, as well as critical automotive parts such as engines, transmissions, powertrain parts and electrical components. The government also mentioned that if necessary, processes would be formulated to expand tariffs on other parts.

The exact details remain to be seen, but we can expect to learn more on April 2. Trump also mentioned that vehicles built in the United States will face “absolutely no tariffs.” However, he implied that the tariffs may be related to the contents of foreign parts.

“If parts are made in the United States, not cars, then those parts are not taxed or taxed, and we will do a very strong policing on the matter,” Trump said. “In most cases, I think that will lead to cars built in one location. Now, it’s ridiculous to build a car here, to Canada, to Mexico, everywhere. So, it’s a very simple system.”

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After the press conference, the White House clarified that automakers import vehicles under the U.S.-Mexico-Canada Agreement (USMCA) will have the opportunity to prove their U.S. content. It said these systems will be implemented so that the 25% tariff applies only to its value of non-U.S. content. However, vehicles and parts will remain free of tariffs until these processes are fully in place.

While the price could launch rockets last week next week, the president reiterated his intention to allow Americans to deduct interest on car loans. This works for American-made vehicles, but the details don’t actually exist. However, it was previously thought to work like a deduction of mortgage interest.