The White House announced that President Trump will hold a press conference on Wednesday, March 26th to unveil tariffs on imported cars. The White House did not disclose the amount of tariffs Trump will impose on the auto industry, nor did it clarify if there would be any exemptions. It is still unclear if the car tariffs will take immediate effect.
Following the news of Trump’s press conference, the stock prices of publicly traded American car manufacturers dropped. Since taking office in January, Trump has imposed or planned tariffs on products from China, Mexico, and Canada due to the fentanyl issue, and intends to implement reciprocal tariffs on trading partners on April 2nd. However, the President hinted on Monday, March 24th that specific tariffs on certain goods, including cars, may be announced before April 2nd.
He has repeatedly stated that tariffs will help stimulate growth in the domestic car industry and force companies to move more production to the United States. On Wednesday, Trump posted a poster on his social media platform, Truth Social, with the slogan “Protecting and bringing back American car jobs.”
According to Reuters, industry experts and former U.S. officials expect the U.S. government to base the new car tariffs on an investigation conducted during Trump’s first term. Car tariffs could impact the operations of North American car manufacturers that rely heavily on the integrated supply chains of the United States, Mexico, and Canada. Bloomberg reported that these tariffs could target a large number of imported cars and light trucks, with trade volume exceeding $240 billion last year.
In early March, Trump imposed a 25% tariff on imports from Mexico and Canada, but later announced a one-month delay in levying taxes on products covered by the United States-Mexico-Canada Agreement (USMCA), such as cars and parts.