Donald Trump announces 25% tariff on all auto imports to the U.S.

U.S. President Donald Trump has signed an executive order to impose 25 per cent tariffs on all automobile imports to the United States.

Trump said the new auto tariffs will go into effect on April 2, which is the same day he is expected to announce a package of global reciprocal tariffs.

“What we’re going to be doing is a 25 per cent tariff on all cars that are not made in the United States,” he said.

“If they’re made in the United States, there’s absolutely no tariff. We start off with a 2.5 per cent base, which is what we were at, and we go to 25 per cent.”

Tariffs on foreign-made auto parts and cars will be complicated as the U.S. sources parts from around the world, and vehicles pass between Canada and the U.S. an average of six times during production.

Trump said he’s looking for foreign-owned companies to move their production entirely to the U.S., and claimed that Canadian company General Motors is moving its parts production south of the border. However, General Motors has not confirmed this.

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On the campaign trail earlier Wednesday, the leaders of Canada’s main political parties spoke about tariffs on the auto sector.

Liberal Leader Mark Carney called the tariffs a “direct attack” on Canadian workers, and pledged his government will create a $2-billion dollar fund to protect the jobs of workers impacted by the tariffs.

Carney also said he plans to form an entirely Canadian manufacturing network to build vehicles in the country.

“This is a direct attack, to be clear, a direct attack on the […] Unifor workers I stood in front of this morning at the Ambassador Bridge – a bridge that is a symbol and a reality up until now, of the tight ties between our two countries.” he said during a press conference.

“Ties of kinship, ties of commerce, ties that are in the process of being broken.”

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Meanwhile, Conservative Leader Pierre Poilievre said if Trump moves forward with auto levies, Canada will hit back.

“As for President Trump, my message to him again is ‘knock it off.’ These tariffs are simply causing chaos in markets, they’re dislocating workers on both sides of the border.”

NDP Leader Jagmeet Singh is set to respond to Trump’s announcement shortly.

Auto parts and vehicles are Canada’s second largest export, with the industry supporting 125,000 jobs directly, and 500,000 jobs indirectly, according to the federal government.

Industry experts predict tariffs could increase the price of new cars by several thousand dollars and put thousands of Canadian auto jobs on the line.

Trump said there’s nothing that could make him pause these tariffs.

Late Wednesday night, he posted on Truth Social threatening to impose bigger tariffs if Canada and the EU work together to hurt the U.S. economy.

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