Trump Imposes 25 Per Cent Tariff On Imported Vehicles, Set To Affect Global Automakers Starting 2 April

In a sweeping policy shift, President Donald Trump has announced a 25 per cent tariff on all imported vehicles, a move he called "very exciting" for domestic manufacturing, ANI reported.

Set to take effect on 2 April, the measure aims to boost US-based production but is expected to have profound implications for global automakers and consumers.

The tariffs will affect nearly half of all vehicles sold in the United States, including those from American brands that assemble cars overseas.

Industry leaders warn that the move could drive up car prices, reduce consumer choices, and disrupt jobs.

Autos Drive America, a group representing international car manufacturers in the US, expressed strong concerns, stating, "The tariffs will make car production more expensive, potentially leading to higher prices for consumers, reduced consumer choices, and potential job market disruptions."

The policy is likely to deteriorate US trade relations with European nations, Japan, and South Korea, all major exporters of vehicles to the US. Experts predict that the cost of new vehicles could rise by thousands of dollars, adding pressure to American consumers already grappling with high inflation.

Despite widespread apprehension, President Trump defended the decision, asserting, "Anybody who has plants in the United States, it's going to be good for."

This move comes amid Trump's broader push for trade reciprocity, with India also in his sights. He previously criticised India’s high auto import tariffs, telling Congress, "India charges us auto tariffs higher than 100 per cent," and vowed to introduce reciprocal taxes on Indian exports.

With tensions escalating, global automakers including those in India, Germany, Japan, and South Korea are preparing for significant shifts in trade policies and manufacturing strategies.

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