Trump slaps automotive industry with 25% tariffs on all foreign vehicles

Donald Trump has slapped 25% tariff on all foreign vehicles imported to the US and this includes car parts.

The new vehicle tariff will start from 2 April and the US President said this will create “tremendous growth” for the US car market.

In 2024 the US imported eight million cars which was valued at £186 billion and the US sent some 17% of cars.

Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), said, “The UK and US auto industries have a long-standing and productive relationship, with US consumers enjoying vehicles built in Britain by some iconic brands, while thousands of UK motorists buy cars made in America.

“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, benefiting consumers and creating jobs and growth across the Atlantic.

“The industry urges both sides to come together immediately and strike a deal that works for all.”

The European Automobile Manufacturers’ Association (ACEA) director general Sigrid de Vries said, “We urge President Trump to consider the negative impact of tariffs not only on global automakers but on US domestic manufacturing as well.

“Tariffs will not just impact imports into the US, a penalty that American consumers are likely to pay, but measures on automotive parts will also hurt auto makers producing cars in the US for export markets.”