Key points
- Trump threatens more tariffs on trading partners
- East Asia countries produced a combined 16.8pc of vehicles sold last year in US
- Cars imported from South Korea currently have no tariffs
WASHINGTON, United States: President Donald Trump’s threat to slap tariffs on imported vehicles puts a $240 billion trade route in the crosshairs, with some of the biggest brands in Germany and South Korea among the most exposed.
US President Donald Trump said Friday that he planned to unveil tariffs on imported cars around April 2, adding to a cascade of levies he has threatened since taking office.
Trump’s statement did not specify whether the tariffs would apply to all auto imports.
Since his inauguration on January 20, Trump has taken aim at allies and adversaries alike with threats of fresh duties.
He has referred to tariffs as a way to raise revenue, remedy trade imbalances and pressure countries to act on US concerns.
Experts have warned it is often Americans who pay the tariffs on US imports — not the foreign exporters.
Asked when he might unveil auto tariffs, Trump said, “Maybe around April 2.”
He did not provide further details on Friday.
Manufacturing
About 50 per cent of the cars sold in the United States are manufactured within the country. Among imports, about half come from Mexico and Canada and the other half from other major auto-producing countries.
This latter group is led by Japan, South Korea and Germany, with Britain, Italy and Sweden a source of a smaller volume of imports.
In recent days, Ford CEO Jim Farley has blasted a proposed Trump tariff of 25 per cent on Mexico and Canada, noting that it disadvantages US companies that have integrated their supply chains across North America under trade agreements, including the United States-Mexico-Canada Agreement (USMCA) negotiated in the first Trump administration.
On February 3, the White House suspended the tariffs for 30 days following moves from Canada and Mexico on border security and fentanyl policies.
Levies targeting the auto sector would come after the president recently firmed up plans for tariffs on all steel and aluminium imports beginning March 12.
He has previously promised tariffs on semiconductors, steel, oil and gas.
“Reciprocal tariffs”
On Thursday, in a move broadening trade conflicts, Trump launched plans for “reciprocal tariffs” that could hit all US trading partners on a country-by-country basis.
The American Automotive Policy Council, which represents Detroit automakers General Motors, Ford and Stellantis, has called for Trump to drop proposed tariffs on Mexico and Canada.
“We support President Trump’s efforts to consider the entire global trade situation, including both tariff and non-tariff barriers,” said AAPC President Matt Blunt on Thursday in response to the announcement on reciprocal tariffs.
“In the meantime, Ford, GM, and Stellantis continue to believe that vehicles and auto parts that meet the USMCA requirements should not be subject to additional tariffs.”
The AAPC did not immediately respond to a request for comment on Friday.
