President Donald Trump on Friday reaffirmed his stance on tariffs, declaring that levies on automobiles would be implemented starting April 2. This announcement came a day after his cabinet members were scheduled to submit reports outlining various import duty options as part of his broader effort to reshape global trade policies.
“Maybe around April 2,” Trump said in response to a question about the timing of auto tariffs, during an executive-order signing in the Oval Office. “I would have done them on April 1… But we’re going to do it on April 2.”
This statement adds to a series of trade actions Trump has introduced since assuming office for the second time on January 20.
Since his inauguration, Trump has imposed a 10% tariff on all Chinese imports, in addition to pre-existing duties; announced but later postponed 25% tariffs on goods from Mexico and non-energy imports from Canada; set a March 12 implementation date for a 25% tariff on all imported steel and aluminum; and on Thursday, directed his economic team to develop reciprocal tariffs on all nations that tax U.S. imports.
These continuous directives, according to Trump, aim to create a level playing field for American goods and revive the long-declining U.S. manufacturing sector. However, they have also led to uncertainty among businesses, strained relations with U.S. allies, and sparked concerns among consumers and economists about rising inflation.
Trump provided no further details on his auto tariff plans before departing for his Florida estate. However, he has long been critical of what he perceives as unfair treatment of U.S. auto exports. For instance, the European Union imposes a 10% tariff on imported vehicles, four times higher than the U.S. 2.5% passenger car tariff. However, the U.S. imposes a 25% tariff on imported pickup trucks, a highly profitable segment.
“We applaud President Trump’s initiative to examine all vehicle imports into the U.S. This is a significant step forward,” Ford Motor Co CEO Jim Farley stated on X after Trump’s remarks. “Comprehensive trade policies are essential to realizing the president’s vision of strengthening the U.S. auto industry.”
Earlier, Farley had remarked that Trump’s tariff policies have added “a lot of cost and a lot of chaos.”
According to auto data firm Ward’s Intelligence, nearly a quarter of new vehicles sold in the U.S. last year were classified as imports, excluding those built in the U.S., Canada, or Mexico. The US-Canada-Mexico Agreement (USMCA), which Trump renegotiated during his first term, exempts vehicles with at least 75% of their parts sourced from these three countries from tariffs.
USMCA is set for review in 2026, and many analysts view Trump’s tariff remarks as a preliminary move toward renegotiating a deal he once called the “greatest trade agreement ever.”
“Thus far, we have not seen any details. Ford, GM, and Stellantis maintain that vehicles and parts meeting USMCA criteria should not be subject to additional tariffs,” said Matt Blunt, president of the American Automotive Policy Council.
Trump’s directive on Thursday instructed his top economic advisers to draft plans for reciprocal tariffs on any country imposing taxes on U.S. goods. His nominee for Commerce Secretary, Howard Lutnick, expects these reviews to be completed and submitted by April 1.
