Thu 27 March 2025:
US President Donald Trump has signed an executive order setting the stage for 25-percent tariffs on car imports, starting April 2, a move that the White House claims will foster domestic manufacturing.
Today, in the Oval Office, Trump made good on that promise, unveiling 25-percent tariffs on car imports for April 2.
“We’re signing an executive order today that’s going to lead to tremendous growth in the automobile industry,” Trump said.
“ What we’re going to be doing is a 25 percent tariff on all cars that are not made in the United States. If they’re made in the United States, there’s absolutely no tariff.”
Trump credited that policy with forcing carmakers to build new plants in the US.
“ We have a lot of exciting things, but to me, this is one of the most exciting now – outside of one specific day, and that’s Liberation Day,” he added, referring to the April 2 tariff start date.
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Auto manufacturing highly integrated between US, Canada, and Mexico
While Trump’s plans for sweeping tariffs have been viewed with apprehension by many financial analysts, the president’s announcement of 25-percent import taxes on cars is poised to hit an industry that has become particularly reliant on free trade between the US, Mexico and Canada.
According to the libertarian Cato Institute, a US-based think tank that supports free markets, auto supply chains are so integrated between the three countries that components such as engines and transmissions can cross borders between seven and eight times during the production process.
The institute says that 54 percent of all car parts and bodies come into the US from Mexico and Canada.
European Union ‘deeply’ regrets car tariffs
European Commission President Ursula von der Leyen expresses disappointment over Trump’s announcement of auto tariffs.
“I deeply regret the U.S. decision to impose tariffs on EU automotive exports,” she said in a social media post. “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.”
‘A direct attack’ on Canadian workers: PM Carney on Trump tariffs
Shortly after Trump signed 25-percent tariffs on the automobile industry, Canadian Prime Minister Mark Carney took to the podium to denounce the tax hike as a “direct attack” on his country’s workers.
He also said that the “ties of kinship” and “ties of commerce” between the US and Canada were “in the process of being broken”.
“We will defend our workers,” Carney said, warning of further retaliatory tariffs against the US and “other options” to protect Canadian industry.
“Canadian workers, Canadians as a whole across this country, have gotten over the shock of the betrayal and are learning lessons. We have to look out for ourselves and we have to look out for each other and work together.”
SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES
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