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Donald Trump just made a major announcement that could shake up the global auto industry. During a televised address, Trump revealed that his administration is imposing a 25% tariff on all cars not manufactured in the United States; a massive jump from the current 2.5% base rate.
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The move, Trump said, is aimed squarely at reviving American manufacturing and putting pressure on foreign automakers to build their vehicles on U.S. soil.
“This is very modest,” Trump began, before detailing the new policy shift. “What we’re going to be doing is a 25 percent tariff on all cars that are not made in the United States. If they’re made in the United States, it’s absolutely not tariff.”
According to Trump, the policy is already having an effect. “Business is coming back to the United States so that they don’t have to pay tariffs,” he added. Trump also took a moment to criticize media coverage of the policy rollout, saying the press has not been “reporting as accurately as it should be” and calling the decision a “massive story.”
The new tariff will apply to all imported vehicles, regardless of country of origin, unless they’re manufactured within the U.S. Analysts say the move could have ripple effects across the automotive supply chain and could lead to rising vehicle prices, shifts in global production strategies, and strained international trade relationships.
More to come as the story develops.
