Trump hits foreign auto imports with 25% tariff

President Donald Trump has announced a 25% tariff on all foreign-made cars, signaling a hardline shift in U.S. trade policy aimed at boosting domestic manufacturing and repatriating jobs.

“This will continue to spur growth,” Trump told reporters during a late afternoon press briefing.

The White House confirmed the measure is permanent and comes on top of existing tariffs, with the administration projecting $100 billion in new revenue as a result.

“If the car is built in the U.S., there will be no tariffs, we are going to charge countries for doing business in our country and taking our jobs, taking our wealth, taking a lot of things that they have been taking over the years.”

The announcement sent immediate shockwaves through the markets. Shares of major U.S. automakers Ford and GM dipped further following the news, as investors assessed the potential fallout.

Global response swift and combative

Canadian Prime Minister Mark Carney slammed the decision as “a direct attack” on Canadian auto workers, vowing retaliation.

“We will defend our workers, our companies, and our country,” Carney said.

Ontario Premier Doug Ford echoed the sentiment, threatening countermeasures targeting U.S. auto exports and warning of "as much trade pain as possible."

European Commission President Ursula von der Leyen wrote that the “automotive industry is a driver of innovation, competitiveness, and high-quality jobs, as I’ve said before, tariffs are taxes—bad for businesses, worse for consumers.”

She added that the European Union would assess the announcement and “continue to seek negotiated solutions while safeguarding its economic interests.”

Trump's “reciprocal taxation,” set to begin April 2 aims to match or exceed tariffs and sales taxes imposed on American exports by other nations. Meanwhile, GM CEO Mary Barra and Ford Chairman Bill Ford are scheduled to meet with Trump's administration officials this week to discuss the change of policy.