The tariffs would affect cars and trucks imported in the US – even those sold by American automakers.

Illustration by Cath Virginia / The Verge | Photos from Brandon Bell, Getty Images

Emma Roth is a news writer who covers the streaming wars, consumer tech, crypto, social media, and much more. Previously, she was a writer and editor at MUO.

During a briefing on Wednesday, President Donald Trump announced plans to put a 25 percent tariff on cars and trucks imported into the US. Trump said the taxes would go into effect on April 2nd — the same time he’s expected to introduce a round of reciprocal tariffs, according to The New York Times.

The tariffs, which Trump called “permanent,” would also apply to American companies that manufacture vehicles in other countries and then bring them into the US. Trump said the tariffs would result in “tremendous growth in the auto industry,” though they’re expected to drive up prices for consumers.

As pointed out by Axios, a 2024 analysis from the US International Trade Commission found that a 25 percent tariff on cars shipped to the US could reduce imports by 74 percent, while the average vehicle price could increase by five percent. Trump’s tariffs on China, Canada, and Mexico have already gone into effect, affecting a wide range of products like clothing, food, lithium batteries, and more.

The April 2nd tariffs are expected to “be customized for each US trading partner,” according to Bloomberg. Trump has said the tariffs might be more “lenient than reciprocal” as concerns grow over their impact on prices.