Trump’s Bold Move: 25% Tariff Slapped on Imported Autos and Light Trucks

President Donald Trump enacted an executive order on Wednesday to levy a 25% tariff on imported cars and light trucks. This significant move, announced during a signing event in the Oval Office, aims to bolster U.S. manufacturing.

Trump asserted that this additional tax will incentivize domestic production. When questioned if trade partners have any options to avoid the new fees, he emphatically stated there were none. According to Trump, this tariff will remain effective for the duration of his presidency and is designed to safeguard the American automotive industry.

“I think our automobile business will flourish like it’s never flourished before,” Trump declared. The tariff is set to take effect on April 2, adding to existing tariffs rather than replacing them.

He described the directive as a way to hold countries accountable for their trade practices, emphasizing, “They’ve taken so much out of our country, friend and foe alike.” The White House estimates that the measure could generate approximately $100 billion in tax revenue.

The administration plans to implement robust enforcement measures for these tariffs. Trump noted that he did not consult White House adviser Elon Musk regarding the tariffs, suggesting a potential conflict of interest.

While discussing the impact on Tesla, Trump indicated that the tariffs might be beneficial or neutral for the automaker, considering its significant manufacturing presence in the U.S. “Anybody that has plants in the United States, it’s going to be good for,” he added.