Donald Trump announces new 25% tariffs on all imported cars and car parts

Old_Joe · March 26

Following are edited excerpts from a current report in The Guardian:

President says levies will take effect on 2 April when he is expected to unveil reciprocal tariffs on other imports

On Wednesday Donald Trump announced plans to impose sweeping 25% tariffs on cars not made in the United States, days before the US president is expected to announce wide-ranging levies on other goods from around the world: “What we’re going to be doing is a 25% tariff for all cars that are not made in the United States,” Trump said in the Oval Office. “We start off with a 2.5% base, which is what we’re at, and go to 25%.”

The tariffs will go into effect next week, on 2 April, the president claimed, and the US will start collecting them the following day. “This is very exciting,” he said, suggesting the move would spur economic growth. In February, Trump floated the idea of a 25% tariff on imported vehicles but had offered no other details. On Monday, the president hinted that the auto industry levies could come in “the very near future”.

On 2 April – a day Trump has dubbed “liberation day” – the president is expected to unveil a wide range of so-called reciprocal tariffs – levies on imported goods that the Trump administration argues are unfairly taxed by the US’s trading partners.

Trump has long argued that the US is being cheated by its trading partners and that tariffs are the best remedy. However, he has delayed or watered down his tariff plans on several occasions. His stance has worried investors, leading to sharp sell-offs in US stock markets, and has proved unpopular with both corporate America and consumers.

Many economists have expressed alarm, too, warning that the president’s tariff plan would risk increasing prices across the US. A study by Anderson Economic Group, an automotive consultant, for example, found that blanket tariffs on Canada and Mexico risked increasing US car prices by as much as $12,000.

Mexico, Japan, South Korea, Canada and Germany are among the top car exporters to the US. Will Scharf, a White House official, claimed the new car tariffs would result in more than $100bn in annual revenue to the US. “Have no fear, we will WIN everything!!!” Trump wrote on Truth Social earlier this month, claiming that tariffs were already “pouring money” into the country.

But a Harris poll conducted for the Guardian found that the majority of Americans were already worried about the impact tariffs will have on their finances. Ninety per cent of Democrats, 69% of independents and 57% of Republicans reported they were concerned about tariffs.

Industry groups sounded the alarm on Wednesday. “Throwing away tens of thousands of jobs on both sides of the border will mean giving up North America’s auto leadership role, instead encouraging companies to build and hire anywhere else but here,” said Candace Laing, president and CEO of the Canadian Chamber of Commerce. “This tax hike puts plants and workers at risk for generations, if not forever.”

Comment: Those states who voted for Trump also voted for exactly what they are getting. Unfortunately, so are the rest of us.

Tarwheel · March 26

I’m glad I don’t need to buy a new car any time soon. Hopefully mine will last at least four more years. Cars are already the most expensive thing people buy, other than homes. This is going to make it impossible for many people to buy a new car.

Old_Joe · March 26

And here's some additional from The New York Times with respect to car parts:

President Trump said on Wednesday that he would impose a 25 percent tariff on cars and car parts that were imported into the United States, a move that could encourage U.S. auto production over the longer run but is likely to throw global supply chains into disarray and raise prices for Americans who buy an automobile.

The tariffs will go into effect on April 3 and apply both to finished cars and trucks that are shipped into the United States and to imported parts that are included in cars assembled at American auto plants. Those tariffs will hit foreign brands as well as American ones, like Ford Motor and General Motors, which assemble some automobiles outside the country, including in Canada or Mexico.

Nearly half of all vehicles sold in the United States are imported, as well as nearly 60 percent of the parts in vehicles assembled in the United States. That means the tariffs could push up car prices significantly when inflation has already made cars and trucks more expensive for American consumers.

Cox Automotive, a market research firm, estimated that a 25 percent tariff on goods from Mexico and Canada would add $3,000 even to the cost of a car built in the United States. Tariffs would add $6,000 on average to the prices of cars made in Mexico or Canada, a category that includes vehicles like the Toyota Tacoma pickup, gasoline and electric versions of the Chevrolet Equinox, and several models of Ram pickups, according to Cox estimates.

Stock markets fell on news that the auto tariffs would be imposed. Shares of major carmakers tumbled further in after-hours trading, after the White House clarified that the tariffs would also cover imported auto parts. General Motors was down nearly 7 percent and Ford and Stellantis were more than 4 percent lower after the markets closed. Tesla’s stock fell 1 percent in extended trading.

Comment: Elections do indeed have consequences. Welcome to Trump World.

Old_Joe · March 26

@FD1000- Hey there - you think that any of this might impact your financial situation?

Edited for civility. OJ, good sir, please don't let your annoyance take over.

habsui · March 27

FD already sold - he saw it yesterday on Signal..

Old_Joe · March 27

@habsui- I love it... I was thinking along the same lines. But maybe not yesterday- FD probably saw this coming back in 2024 and positioned himself accordingly. No last-minute moves for that guy!

Editing for civility.

Sven · March 27

Be ready for the price hike for just about all name brands. So much wins with these tariffs and their impact on inflation.
https://apple.news/A8j5V1-XQTu6Gk1aIVZJZQA

Treasury secretary Bessent stated that " “Access to cheap goods is not the essence of the American dream.” Having a vehicle to go work while earning a living and feed your family is NOT an American Dream!
https://cnbc.com/2025/03/06/treasury-secretary-bessent-says-the-american-dream-is-not-about-access-to-cheap-goods.html

Mark · March 27

~~What's in the air these morons breathe anyway?~~

I wonder why these people are so comfortable substituting ideological purity for evidence-driven decision-making?

Edited for civility.

rforno · March 27

This is what you get when people who have never had to do for themselves are running socioeconomic policy. Has FOTUS, Bessent, Luttnick, RFKJR, etc. ever:

- done their own laundry
- made their own midnight snack
- cleaned their own house or done their own yardwork
- gone food shopping on the weekend
- waited for something to go 'on sale' before buying it (besides companies)
- waited at a garage for car repairs
- juggled 'everyday' household tasks with their wives/families
- etc etc etc

No? That explains much and their 'let them eat cake' mentality about everything from tariffs to what happens if granny's SS check isn't delivered one month for some reason....

JD_co · March 27

"Having a vehicle to go work while earning a living and feed your family is NOT an American Dream!" - Bessent. Yes, downgrade our lives, oh wise ones! And yet, we shall continue to blindly follow thee. We are not worthy.

Project 2025 running strong.

Stoppage of SS checks would be a defining moment.

Anna · March 27

I keep having this vision from "Coal Miner's Daughter" for some reason. For example, deportation of local farm workers and limiting green cards means a subset of future US citizen need to live in such squaller that they beg for farm work. That means all sources of help must be eliminated and they must be shamed into not seeking any assistance.

AndyJ · March 27

++++++ @Anna. He prefers the 1890s (McKinley), and that's where his mob is trying to take us. For real.

PopTart · March 27

There are a lot of parallels. Cheeto even renamed Mt Denali back to its former name of Mt McKinley. McKinley lasted 5 months into his second term …

Observant1 · March 27

deleted

Old_Joe · March 27

Throughout history ruling classes have done whatever it takes to create an underclass equivalent to financial slavery, to perform labor that is ruinous to health and long life. It is no coincidence that the Trump administration is intent upon choking off any type of support for low-income Americans, which will eventually force them into the farm fields to replace the workers who are now being deported.

3/28- This, thanks to a lead by @Crash. Edited excerpts from a report by CNN:

Florida debates lifting some child labor laws to fill jobs vacated by undocumented immigrants

Florida has been working for years to crack down on employers that hire undocumented immigrants. But that presented a problem for businesses in the state that are desperate for workers to fill low-wage and often undesirable jobs.

Florida’s Republican Gov. Ron DeSantis and the state legislature have a potential solution: children. The state’s legislature on Tuesday advanced a bill that would loosen child labor laws, allowing children as young as 14 years old to work overnight shifts. If the new law is passed, teenagers would be able to work overnight jobs on school days. They are currently prevented from working earlier than 6:30 am or later than 11 pm per state law.

The bill passed through the Florida Senate’s Commerce and Tourism committee on Tuesday with five votes in favor of the loosened child labor restrictions and four against them. The bill will pass through two other relevant committees before being put to a vote with the full Florida Senate. DeSantis is supportive of the law and has been vocal of cracking down on immigration, echoing President Donald Trump’s rhetoric. However, economists have warned that could backfire, sparking further inflation and labor shortages.

“Why do we say we need to import foreigners, even import them illegally, when you know, teenagers used to work at these resorts, college students should be able to do this stuff,” DeSantis said last week at a panel discussion with border czar Tom Homan, as first reported by the Tampa Bay Times.

The state has been easing up on child labor protections for years. Last year, the legislature passed a law allowing home-schooled 16- and 17-year old teens to work any hour of the day.

The state’s Republican-led legislature on Tuesday will debate the new law, which also includes a number of changes including eliminating working time restrictions on teenagers aged 14 and 15 if they are home-schooled and ending guaranteed meal breaks for 16 and 17 year olds.

The number of child labor violations in Florida has nearly tripled in recent years, according to US Department of Labor statistics.

JD_co · March 27

Old_Joe said:
Throughout history ruling classes have done whatever it takes to create an underclass equivalent to financial slavery, to perform labor that is ruinous to health and long life. It is no coincidence that the Trump administration is intent upon choking off any type of support for low-income Americans, which will eventually force them into the farm fields to replace the workers who are now being deported.

If you had made this comment a year ago, I would probably have laughed at you. But nobody here is laughing now.

Dutch · March 27

@Old Joe, you’re killing me. Glad to see I am not the only one that thinks FDwhatever his name is, completely is full of excrement.

Crash · March 27

Is that Orange Slimebag DEAD yet?

Mark · March 27

"It is no coincidence that the Trump administration is intent upon choking off any type of support for low-income Americans, which will eventually force them into the farm fields to replace the workers who are now being deported."

On this I've seen where FL is now working a bill through their state which will enable businesses to hire underage children to work the jobs of these deportees including overnight hours. I'm still searching for a reliable source.

Crash · March 27

https://www.cnn.com/2025/03/25/business/florida-child-labor-laws/index.html

Mark · March 27

Thank you @Crash. Beyond despicable.

Sven · March 28

Trump tells car manufacturers NOT to hike car prices from tariffs he imposed. As it stands, car manufacturers stand to loss billions of added cost. Can you envision what it does to their earnings?

Does the man know his math, let alone economics?
https://apple.news/Ai1tFLzL6S9m2lSPhDAx3oQ

Old_Joe · March 28

This very ignorant and fatuous man really believes that tariffs are paid by other countries, not the US customer.

Old_Joe · March 28

3/28- This, thanks to a lead by @Crash. Edited excerpts from a report by CNN:

Florida debates lifting some child labor laws to fill jobs vacated by undocumented immigrants

Florida has been working for years to crack down on employers that hire undocumented immigrants. But that presented a problem for businesses in the state that are desperate for workers to fill low-wage and often undesirable jobs.

Florida’s Republican Gov. Ron DeSantis and the state legislature have a potential solution: children. The state’s legislature on Tuesday advanced a bill that would loosen child labor laws, allowing children as young as 14 years old to work overnight shifts. If the new law is passed, teenagers would be able to work overnight jobs on school days. They are currently prevented from working earlier than 6:30 am or later than 11 pm per state law.

The bill passed through the Florida Senate’s Commerce and Tourism committee on Tuesday with five votes in favor of the loosened child labor restrictions and four against them. The bill will pass through two other relevant committees before being put to a vote with the full Florida Senate. DeSantis is supportive of the law and has been vocal of cracking down on immigration, echoing President Donald Trump’s rhetoric. However, economists have warned that could backfire, sparking further inflation and labor shortages.

“Why do we say we need to import foreigners, even import them illegally, when you know, teenagers used to work at these resorts, college students should be able to do this stuff,” DeSantis said last week at a panel discussion with border czar Tom Homan, as first reported by the Tampa Bay Times.

The state has been easing up on child labor protections for years. Last year, the legislature passed a law allowing home-schooled 16- and 17-year old teens to work any hour of the day.

The state’s Republican-led legislature on Tuesday will debate the new law, which also includes a number of changes including eliminating working time restrictions on teenagers aged 14 and 15 if they are home-schooled and ending guaranteed meal breaks for 16 and 17 year olds.

The number of child labor violations in Florida has nearly tripled in recent years, according to US Department of Labor statistics.

Comment: Does anyone seriously believe that the children of the upper classes will be included in these young workers?

JD_co · March 28

There are some who believe it would be difficult to be that blind. Some believe he is trying to bring down the US economy and this entire country, and he is doing a swell job on that front.

Old_Joe · March 28

He is Putin and Russia's best friend.

And FD1000, Baseball_Fan, Hondo and Edmond have the temerity to call some of us "Communists".

JD_co · March 28

They drink the punch and that will not change. He will maintain many of his cult followers no matter how bad it gets.

The markets haven't begun to really roll over just yet. Could be very rough seas ahead if we maintain this path.

Crash · March 28

JD_co said:
There are some who believe it would be difficult to be that blind. Some believe he is trying to bring down the US economy and this entire country, and he is doing a swell job on that front.

He IS a Russian asset.

Observant1 · March 28

Brings to mind the following comment.

"I could stand in the middle of 5th Avenue and shoot somebody and I wouldn't lose any voters."
- Donald J. Trump, 01/23/2016

Sven · March 28

The earning season is coming and it won’t be pretty. There may be better buying opportunities ahead after 10%+ pullback. At that point, the valuation may return to the nominal range.

The FED is in a tight spot right now with slowing economy and worsening inflation from tariffs. Some members suggested 2 rate cuts this year. I would say there may be none as the tariffs war is only starting.

Edit: Another point is that we may be marching toward stagnation and that can be really bad. Stocks fall, and the FED may have to hike the rates instead.
https://axios.com/2025/03/28/pce-index-inflation-trump-tariffs

Crash · March 28

Agreed on "none." With the felon-clown in charge, there's no way to predict, plan or evaluate. Clearly, he sees his job as taking apart the economy and the country. (Heather Cox Richardson.) Amoral. Anything for a buck--- as long as it goes into HIS pocket.

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Donald Trump announces new 25% tariffs on all imported cars and car parts

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