USA 25% Tariffs On Auto Industry

On March 26 2025, President Donald Trump announced 25% tariffs on automobiles and key automobile parts. This takes effect on April 03 2025.

In 2024, there are four countries with more than 1 million vehicles exported to the United States: Mexico 2.96 million vehicles, South Korea 1.54 million vehicles, Japan 1.38 million vehicles, and Canada 1.07 million vehicles.

The export volume of the following countries is very different from the first four, with Germany 447,000 vehicles, China 106,000 vehicles, the United Kingdom 96,000 vehicles, Slovakia 93,000 vehicles, Sweden 88,000 vehicles.

From China's perspective, the value of China's automobile export in 2024 is 117.4 billion US dollars, and the United States has long imposed a 27.5% tariff on Chinese complete vehicles and a 102.5% tariff on electric vehicles.

According to the White House, “These new tariffs aim to ensure the U.S. can sustain its domestic industrial base and meet national security needs. ” however economists and industry insiders generally believe that the US's additional auto tariffs will deal a major blow to the US auto industry.

As tariffs push up car prices, consumers will buy fewer cars, and a large number of auto and parts companies may face layoffs. The risk of global trade conflicts is increasing, which means if not controlled, it will have a significant negative impact on global economic growth and employment.

The above data comes from the Internet.