By Brendan Scanland
WASHINGTON, D.C. — In less than one week, auto tariffs on new vehicles assembled outside the U.S. are scheduled to take effect.
The proclamation signed by President Trump this week also includes tariffs on auto parts which are expected no later than early May.
With the stroke of a pen on Wednesday, President Donald Trump paved the way for a 25% tariff on all imported cars and auto parts. According to the White House, about half of the 16 million cars, light trucks and SUVs purchased in 2024, were imports. The administration says the tariffs will level an uneven playing field.
“It’s the cheating of countries like Germany, Japan, Korea in the automobile space which have stolen jobs,” said Peter Navarro, the White House Senior Counselor for Trade and Manufacturing. “We’re going to see domestic production rapidly replace this foreign content. We’re going to see wages go up.”
“I’m very concerned about the most recent announcement of a 25% tariff on cars and car parts,” said Senator Kirsten Gillibrand (D- NY).
Gillibrand and many industry experts predict the price for new cars could rise by thousands of dollars, including American-made cars because of the proposed tariffs on parts.
“That will raise prices for consumers across the board. It affects our U.S.-based and New York-based manufacturers because a lot of inputs do come from Canada,” said Gillibrand.
“Build a factory here, hire American workers, and we’ll be glad to buy your cars and trucks,” said Congressman Mike Kelly (R- PA), who is no stranger to the auto industry.
“I’m a General Motors dealer. I’m a Hyundai dealer. I’m a Kia dealer. I’m a Toyota dealer. I’m a Mitsubishi dealer,” said Kelly, adding that he believes the new tariffs are designed to build a stronger labor force in the U.S.
“I think what he’s taking about- the cars that are made in another country, have no parts content here, no labor content here- those are the ones we want them to start thinking, ‘we want you to be in America, but we also want you to be not just here to sell us a car or a truck, but to have people building them, people servicing them. That’s what he’s talking about. He wants to build a labor force that makes the country stronger,” said Kelly.
The tariffs on all cars shipped to the U.S. take effect April 3 and those on car parts, no later than may third. Certain parts from Canada and Mexico that align with the countries’ agreement with the U.S. are exempt from the tariffs for now.
