President Donald Trump announced on Wednesday that his administration will impose a 25% tariffs on all imported auto, significantly increasing the previous 2.5% rate. The tariffs are set to take effect on April 2, coinciding with the rollout of his broader reciprocal tariff plans.
During a White House press conference, Trump framed the tariffs as a way to revitalize domestic auto production, create jobs, and generate tax revenue to support his tax cut agenda.
“These tariffs will lead to the construction of a lot of auto plants,” Trump said from the Oval Office. “You’re going to see numbers that you haven’t seen before, both in terms of employment and manufacturing. Initially, you’ll see great construction numbers, and ultimately, you’re going to have a lot of people making a lot of cars.”
He noted that automakers with existing factories in the U.S. are largely supportive of the move, while those without domestic plants will have to adjust.
“If they have factories here, they are thrilled. If they don’t, they’re going to have to build them—otherwise, they’ll have to pay the tariffs. It’s very simple,” Trump said.
Canada quickly signaled its intention to respond with retaliatory tariffs. Ontario Premier Doug Ford