Trump’s 25% tariff on imported cars raises concerns industry leaders
By Jasmine Jose
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4/3/25 (LAPost.com) — President Donald Trump’s recent announcement of a 25% tariff on imported cars and car parts is generating significant concern among U.S. consumers and industry leaders.
The tariffs – set to take effect on April 3 – aim to bolster domestic manufacturing by reducing reliance on foreign-made vehicles and components. However, experts warn these measures could lead to higher prices and supply chain disruptions.
Industry leaders express concern over the tariffs’ potential impact on the automotive supply chain. The Wall Street Journal reports that U.S. manufacturers are already facing challenges due to previous tariffs on steel and aluminum, which have disrupted supply chains and increased costs for metal components. The new auto tariffs could exacerbate these issues, leading to further complications in production and pricing.
According to the Associated Press, if manufacturers pass the full cost of the tariffs onto consumers, the average price of an imported vehicle could rise by approximately $12,500. This substantial increase may limit options for consumers seeking affordable foreign models and could lead to higher prices for used vehicles as well.
The Trump administration maintains the tariffs are a necessary step to revitalize American manufacturing and reduce the trade deficit. A fact sheet from the White House outlines the 25% tariff will be applied to imported passenger vehicles and light trucks, as well as key automobile parts, including engines, transmissions, powertrain parts, and electrical components.
International leaders have criticized the tariffs, expressing concerns over potential retaliation and the risk of a global trade war. The Guardian reports economists warn the measures could negatively impact global trade, leading to reduced economic growth and potential job losses worldwide.
As the implementation date approaches, both consumers and industry stakeholders are closely monitoring developments, awaiting further clarification on the tariffs’ specifics and their anticipated effects on the market.
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