Trump imposes sweeping auto tariffs in latest trade crackdown

President Trump announced a 25% tariff on automakers that do not manufacture vehicles in the U.S. This policy aims to encourage domestic production but could raise car prices for consumers. During the announcement, Trump stated, "We’ll effectively be charging a 25% tariff, but if you build your car in the United States, there is no tariff." This tariff could particularly impact an already struggling auto industry facing competition from China and rising costs from previous tariffs on steel and aluminum. About 45% of light vehicles in the U.S. are imported. A study by the U.S. International Trade Commission suggests that such tariffs could drastically reduce imports and increase average car prices by 5%.