Chicago – March 27, 2025
President Trump said on Wednesday that he will impose 25% tariffs on imported cars and car parts starting next week, using his national security powers to take the action.
“I think our automobile business will flourish like it’s never flourished before,” Trump said in remarks from the Oval Office.
The United Auto Workers union praised the move, saying it could mean more shifts for workers at plants with spare capacity.
The latest policy is yet another example of the president’s tariff-centric second-term economic agenda. Thus far, Trump has imposed tariffs on Chinese goods, steel and aluminum, and some goods from Canada and Mexico.
Mexico is by far the largest exporter of auto parts to the U.S., followed by Canada, China, Japan, and South Korea, according to Commerce Department data. The list of the biggest vehicle exporters is similar: Mexico far outstrips other countries, followed by Japan, South Korea, Canada, and Germany.
