Trump imposes 25% duty on imported cars and spare parts: EU responds
27 March 2025 08:51
US President Donald Trump has announced that a 25% duty on all cars imported to the US will be imposed on April 2. This was reported by "Komersant Ukrainian" with reference to NBC.
Trump emphasized that his administration is taking aggressive trade measures to support domestic producers.
“We are imposing a 25% duty on all cars that are not made in the United States. If they are made in the United States, there will be no duty. We are starting with the basic 2.5% that was in effect before and raising it to 25%. As you know and see, although this is not covered as accurately as it should be, this is a huge event – businesses are returning to the United States to avoid these duties,” the White House chief said.
He added that this decision will remain in effect until the end of his term.
After this announcement, shares of leading American automakers plummeted: General Motors – by 6%, Toyota Motors – by 2.2%, Ford – by 4%, BMW – by 4.1%, and Tesla – by 1.2%.
It should be noted that Mexico is the largest importer of cars to the United States, followed by Japan, South Korea, the European Union, and Canada.
What is known about the new tariffs
Date of introduction: the tariffs will take effect on April 3.
Who isaffected: the duty will be levied on all imported cars and spare parts, regardless of the country of origin.
Exemptions: companies importing vehicles under the US-Mexico-Canada Agreement (USMCA) are temporarily exempt from the new duty.
Expected revenue: Trump has said that the US could receive up to $100 billion in tariff revenues.
How it will affect prices and consumers
According to Autoweek, the introduction of a 25% duty could lead to a significant increase in the cost of cars:
- A price increase of $12,000 for some models.
- A minimum price increase of $4,000 even for budget options.
- Limited choice of cars on the market, as manufacturers may reduce deliveries due to increased costs.
According to Cars.com, more than 50% of cars sold in the US in 2023 were imported. Some popular models that may be subject to the new duty include:
- Audi Q5
- Chevrolet Silverado 1500
- Ford Maverick
- Ford Mustang Mach-E
- Ram 1500 and 2500
- VW Jetta, Taos and Tiguan.
Will American automakers benefit from this?
Trump said that the duty would stimulate production in the United States:
- Automakers will build new plants or expand existing ones.
- At the same time, shares of General Motors, Ford, and Stellantis have already fallen after the tariffs were announced.
Jennifer Safavian, president of Autos Drive America, said:
“These tariffs will make it more expensive to produce and sell cars in the United States, which will lead to higher prices for consumers and fewer manufacturing jobs.”
What’s next
These tariffs are only part of Trump’s broader tariff policy. New trade restrictions on various goods from key US partners are expected to be introduced on April 2, the “Liberation Day”.
American car manufacturers may try to get a delay or revision of the decision, but so far, Trump has no plans to change his position.
EU reaction
European Commission President Ursula von der Leyen reacted to the US decision.
“I deeply regret the US decision to impose tariffs on EU car exports. Tariffs are taxes – bad for business, even worse for consumers, both in the US and in the EU,” she wrote on social network X.
According to her, the EU will continue to seek a solution through negotiations, protecting its economic interests
I deeply regret the U.S. decision to impose tariffs on EU automotive exports.
– Ursula von der Leyen (@vonderleyen) March 26, 2025
Tariffs are taxes – bad for businesses, worse for consumers, in the US and the EU.
The EU will continue to seek negotiated solutions, while safeguarding its economic interests ↓
