Trump Announces 25% Tariffs on Imported Cars

President Donald Trump announced on Wednesday his intention to impose a 25% tariff on all automobiles not manufactured in the United States. Addressing the nation from the Oval Office, Trump stated unequivocally that there will be "absolutely no tariff" on cars produced domestically. This announcement follows Trump's earlier indication on Monday that these auto tariffs could be implemented before April 2nd, the day his comprehensive "reciprocal tariff" plan is scheduled to commence.

Trump emphasized this imminent decision during a Cabinet meeting, stating, "We'll be announcing that fairly soon over the next few days, probably, and then April 2 comes, that'll be reciprocal tariffs." This move aligns with Trump's long-standing intention to impose substantial tariffs on foreign trading partners. However, his unpredictable and often fluctuating policy implementations have generated considerable volatility in the stock market and left business leaders grappling with uncertainty regarding future planning.

Trump's "Liberation Day" and Reciprocal Tariffs

Trump has dubbed April 2nd as "liberation day" and "the big one," marking the launch of his plan to impose reciprocal tariffs on all countries that levy import duties on U.S. goods. This plan also encompasses tariffs in response to other trade practices deemed unfavorable, such as the utilization of value-added taxes. Initially, Trump's plan appeared resolute, but recent suggestions indicate a potential softening of the impending tariffs.

Trump himself acknowledged on Friday that "there'll be flexibility" regarding these tariffs, and on Tuesday night, he hinted that the duties would be more "lenient than reciprocal." Treasury Secretary Scott Bessent further clarified last week that countries have the opportunity to engage in pre-negotiations with the U.S. to avoid facing new tariffs on April 2nd.