Overview

• President Trump plans to enforce 25% tariffs on imported cars and auto parts starting April 3, with reciprocal tariffs on other imports set for April 2.
• The White House projects $100 billion in revenue from the tariffs over the next year, but automakers warn of higher car prices and reduced U.S. vehicle sales.
• Trade partners, including the EU and Canada, are preparing retaliatory measures, raising concerns of further economic fallout and strained alliances.
• Industry analysts predict car prices could rise by $3,000 to $10,000, with lower-income consumers disproportionately affected by increased costs.
• Economists caution that the tariffs may exacerbate inflation, disrupt global supply chains, and heighten risks of an economic downturn in the U.S.