“What we’re going to do is put a 25 percent tariff on all vehicles that are not made in the United States,” Trump said at an Oval Office event.

President Trump said the new import tariffs would take effect on April 2, the same day he plans to announce “matching tariffs” targeting countries responsible for much of the US trade deficit.

The new auto tariffs will take effect on April 3. In addition to cars, the tariffs will also affect light trucks. The proclamation invokes Section 232 of the Trade Act of 1962.

However, the order exempts auto parts that comply with the US-Mexico-Canada Trade Agreement. "USMCA-compliant auto parts will remain exempt from tariffs until the Secretary of Commerce... establishes a process for applying tariffs to non-U.S. items," White House principal deputy press secretary Harrison Fields told X.

The United States imported $474 billion worth of auto products in 2024, including $220 billion worth of passenger vehicles. Mexico, Japan, South Korea, Canada and Germany, all close U.S. allies, were the largest suppliers.

The US president has also imposed steep tariffs on steel and aluminum imports and has repeatedly said he plans to announce global “matching tariffs” on April 2.

The new auto tariffs are expected to increase the cost of buying a car by thousands of dollars for consumers, hurt new car sales and lead to job losses, as the U.S. auto industry relies heavily on imported parts, according to the Center for Automotive Research.

The announcement was quickly criticized by the European Union and Canada. Canadian Prime Minister Mark Carney called it a "direct attack" on Canadian workers. EU chief Ursula von der Leyen said: "I deeply regret the decision by the United States to impose tariffs on European car exports."

Huy Hoang (according to WH, Newsweek, CNN)