Donald Trump To Announce Car Import Tariffs In April
JAKARTA - President of the United States (US) Donald Trump revealed his plan to set vehicle import rates in April 2025. This policy adds to the list of import duties that he plans to implement.
Trump stated that this was likely to happen on April 2. However, he did not explain whether the policy would apply to all imported cars.
Currently, about half of the total vehicles sold in the US are domestically produced. Meanwhile, about 50% of imported vehicles marketed in the US are from Mexico and Canada, while the rest are sent from other countries that are the main automotive manufacturers.
Several major countries that export cars to the US include Japan, South Korea, and Germany. In addition, the UK, Italy, and Sweden also export vehicles to the US, although in smaller numbers.
Since taking office on January 20, 2025, Trump has threatened to impose new import rates for his allies and political rivals. According to him, tariff policies can increase state revenue, overcome trade deficits, and put pressure on other countries to respond to US interests.
However, experts warn that import rates often have an impact on domestic consumers, not just foreign exporters.
Ford CEO Jim Farley opposes Trump's plan to set tariffs of up to 25% for vehicles from Mexico and Canada. According to him, the move could harm US companies that have built regional supply chains under North American trade agreements, including the US-Mexico-Canada (USMCA) Agreement previously negotiated in Trump's administration.
The American Automotive Policy Council (AAPC), which represents major automotive manufacturers, such as General Motors, Ford, and Stellantis, urged Trump to cancel plans to impose import rates on Mexico and Canada.
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AAPC President Matt Blunt said his party supports Trump's efforts to evaluate global trade, including tariff and non-tariff barriers. However, Ford, GM, and Stellantis still argue that vehicles and spare parts that meet USMCA requirements should not be subject to additional duties.
Previously, Trump had also confirmed his intention to impose import rates on steel and aluminum starting March 2025. In addition, he plans to set tariffs for other products such as semiconductors, oil, gas, and steel.