Overview

• President Donald Trump has confirmed a 25% tariff on all imported cars, raising the total tax to 27.5%, with implementation beginning April 2, 2025.
• The tariffs will apply to all vehicles not manufactured in the United States, with exceptions for Canadian and Mexican-assembled vehicles, which will only be taxed on non-U.S.-sourced parts.
• Industry experts warn of significant price increases for cars in the U.S., potential job losses in the automotive sector, and disruptions to North American supply chains.
• The European automotive industry, particularly Germany, faces substantial economic risks as the U.S. is a major market for European premium vehicles.
• Canada's Prime Minister Mark Carney has condemned the tariffs as a direct attack on Canadian workers, while retaliatory measures from affected nations are anticipated to escalate trade tensions.