Overview

• President Donald Trump confirmed 25% tariffs on all imported cars and light trucks, set to take effect on April 2, 2025.
• The tariffs are expected to significantly increase car prices, with estimates ranging from $2,000 to $12,200 per vehicle, according to industry experts.
• Automakers and industry groups warn of job losses, higher production costs, and long-term harm to the U.S. auto sector, despite the administration's goal of encouraging domestic production.
• The announcement caused sharp declines in U.S. stock markets, with auto industry stocks like General Motors and Tesla dropping by 3% and 5.6%, respectively.
• Global trade partners, including Canada, Mexico, and the EU, are bracing for retaliatory measures, further escalating trade tensions and economic uncertainty.