President Donald Trump’s America First agenda is not stopping anytime soon: he has slapped a 25% tariff on all imported vehicles ahead of a looming deadline.
Starting April 2, this bold policy aims to bring auto manufacturing jobs back to the United States while generating $100 billion annually for the Treasury.
The sweeping tariff increase from 2.5% to 25% has foreign competitors and globalist economists panicking.
President Trump signed the executive order at the White House, declaring that the policy would revitalize American manufacturing.
“We’re signing an executive order today that’s going to lead to tremendous growth in the automobile industry,” the president stated. “This will continue to spur growth. We’ll effectively be charging a 25% tariff.”
The tariff applies to “all cars not made in the United States,” targeting vehicles from Mexico, Japan, South Korea, Canada, and Germany.
Nearly half of all vehicles sold in America are currently imported, with roughly 60% of parts used in domestic assembly coming from abroad.
The president’s action aims to shift this imbalance, strengthening American workers and businesses against foreign competition.
President Trump highlighted Hyundai’s plans to build a $5.8 billion steel plant in Louisiana as evidence that his tariff strategy is already working.
Other major investments from companies like Apple and Honda show manufacturers responding to the new economic landscape by bringing production to American soil.
“I think our automobile business will flourish like it’s never flourished before,” President Trump declared.
The United Automobile Workers union has endorsed the tariffs, recognizing their potential to create American jobs.
President Trump proposed a tax deduction for interest on loans for U.S.-made vehicles to offset potential price increases for consumers.
The move would ensure that hardworking Americans can still afford new cars while supporting domestic manufacturing.
Not surprisingly, globalist elites are already complaining. Economist Mary Lovely of the Peterson Institute for International Economics issued a warning.
“We’re looking at much higher vehicle prices. We’re going to see reduced choice…These kinds of taxes fall more heavily on the middle and working class,” he claimed.
However, supporters of the decision argue that rebuilding American manufacturing creates better-paying jobs that more than offset any temporary price adjustments.
Trading partners are already threatening retaliation. Canadian Prime Minister Mark Carney complained, “This will hurt us.”
Meanwhile, Ontario Premier Doug Ford threatened, “We’re going to make sure that we inflict as much pain as possible on the American people.”
The auto tariff is part of President Trump’s broader strategy to impose “reciprocal” taxes on imports from countries that have been exploiting America for decades.
Additional tariffs on steel, aluminum, pharmaceuticals, computer chips, lumber, and copper are also planned.
When the European Union threatened a 50% tariff on U.S. spirits, President Trump immediately announced a planned 200% tax on European alcoholic imports.
Financial markets initially showed mixed reactions. General Motors and Stellantis stocks dropped, while Ford saw a slight increase.
However, the president’s America First policy seeks to result in more jobs, better wages, and reduced dependence on foreign supply chains.
It also expects markets to adjust to the new reality of an economy that prioritizes American workers.
