► President Trump announces new tariffs
► 25 per cent on all cars not made in US
► Levies to kick in on 3 April, says White House
President Donald Trump has announced that the United States will impose a 25 per cent tariff on all cars not manufactured in the US.
The news comes as Trump continues to ignite ongoing trade wars around the world, even with close allies like Canada, the UK and the European Union. A White House official says the tariffs are expected to come into force on 3 April 2025.
‘What we are going to be doing is a 25 per cent tariff on all cars that aren’t made in the United States,’ says Trump while at his desk in the Oval Office. ‘We started off with a 2.5 per cent base – that’s where we’re at – and we’ll go to 25 per cent.’
Trump says enacting these tariffs will mean ‘incentivising companies – and even countries – to come into America and build.’
Car makers are busy reacting to the news. Ineos, the industrial giant that also happens to make the Grenadier 4×4 is ‘outraged that the tariff situation with the US has been neglected by the EU.’
‘This is what happens when politicians sit on their hands,’ says Lynn Calder, CEO of Ineos Automotive. ‘As a growing EU-based automobile brand, we are vulnerable to tariffs, and we need our politicians to support our business, our jobs and our economies. We need urgent and direct political intervention on tariffs.
‘We will give whatever support we can to our political leaders to keep the playing field even for small, competitive brands such as Grenadier. But we must see action from EU politicians: only they are in a position to address the issue. Fortunately, we have been planning for tariffs but there is only so much we can do to protect US customers from price rises.’
Tesla, led by Elon Musk who has a role in Trump’s government, will be affected, too. Musk confirmed on X: ‘Important to note that Tesla is NOT unscathed here. The tariff impact on Tesla is still significant.’
Others, meanwhile, have already been busy increasing their stake in US manufacturing. Hyundai Motor Group, for example, has recently announced $21bn in investment and has opened up ‘Metaplant America’ in Georgia that’s designed to assemble both cars and batteries for EVs for Hyundai, Kia and Genesis vehicles.
On top of that, the President announces that his government intends to offer interest relief on those looking to buy a new car that’s US-made. ‘If you borrow money to buy a car, you will be allowed to deduct interest payments for the purposes of income tax, but only if the car is made in America.’
Naturally, reaction hasn’t been positive from many corners of the world, as these will have knock-on effects globally. Mike Hawes, chief executive of the Society of Motoring Manufacturers and Traders (SMMT), which is the UK body that looks after the interests of the automotive industry here, says the tariffs are ‘not surprising but, nevertheless, disappointing.’
‘Rather than imposing additional tariffs, we should explore ways in which opportunities for both British and American manufacturers can be created as part of a mutually beneficial relationship, benefitting consumers and creating jobs and growth across the Atlantic,’ says Hawes. ‘The industry urges both sides to come together immediately and strike a deal that works for all.’
Canadian Prime Minister, Mark Carney, says the tariffs are ‘a very direct attack,’ according to the Associated Press.
European Commission president, Ursula von der Leyen, says in a statement: ‘tariffs are taxes – bad for businesses, worse for consumers equally in the US and the European Union.’ That is, of course, after von der Leyen led initiatives to impose tariffs on cars from China that reach the EU.
Not everyone is displeased, though. United Auto Workers, a huge union for car industry employees in the United States, applauds the news. UAW president, Shawn Fain, says ‘ending the race to the bottom in the auto industry starts with fixing our broken trade deals, and the Trump administration has made history with today’s actions.’