Trump sets 25% tariffs on auto imports

President Donald Trump in the Oval Office

'I think our automobile business will flourish like it's never flourished before'

(Image credit: Jabin Botsford / The Washington Post via Getty Images)

published 27 March 2025

What happened

President Donald Trump said Wednesday he would impose a "25% tariff on all cars not made in the U.S." starting April 3. The White House said the tariffs would also apply to most auto parts, temporarily excluding those produced under the U.S.-Mexico-Canada trade agreement.

If the full tax is passed onto consumers, prices on imported vehicles "could jump by $12,500, a sum that could feed into overall inflation," The Associated Press said. Cox Automotive predicted a $6,000 increase on cars made in Mexico and Canada and an extra $3,000 for cars built in the U.S., given the tax on auto parts. "Bottom line: lower production, tighter supply and higher prices are around the corner," Cox chief economist Jonathan Smoke said Wednesday.

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Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.