President Trump announced new tariffs of 25% on imported autos. The move is intended to encourage auto manufacturers to build factories in the United states.
In March 2025, President Trump announced a 25% tariff on all car imports, effective the following week, citing national security powers. The White House stated that roughly half of cars purchased in the U.S. in 2024 were imports. Trump believes this will boost domestic manufacturing and government revenue, while the United Auto Workers union praised the decision. Concerns exist about potential price increases. This action is part of a larger trade policy involving tariffs on steel, aluminum, and other goods from various countries, with reciprocal tariffs on imports expected soon. Tariffs on lumber and pharmaceuticals are also anticipated.
