President Donald Trump announced on Friday that he might impose tariffs on auto imports starting 2nd of April a move that could further strain trade relations with North American neighbors, Europe, and other global partners.
Trump made the statement in response to a reporter’s question regarding when he might follow through on a previous threat to levy auto duties.
“Maybe around April 2,” Trump said during an executive order signing in the Oval Office, which coincides with the deadline for several trade reports under an order he signed on Inauguration Day.
In 2024, the U.S. imported $471 billion worth of auto products, including cars, parts, and trucks. Mexico was the largest foreign supplier of cars, followed by Japan, South Korea, Canada, and Germany.
Mexico, Canada, and South Korea currently enjoy duty-free access to the U.S. for most cars under trade agreements, but Trump’s threat to impose a 25% tariff on Mexico and Canada over border security concerns could undermine the U.S.-Mexico-Canada Agreement.
On Thursday, Trump signed an executive order laying the groundwork for reciprocal tariffs, potentially adding auto tariffs on top of those rates.
