Trump Tariffs Expand To Automobiles

President Donald Trump expanded his tariffs on Wednesday by including foreign automobile products, including other related items.

President Trump and Sec. of Commerce Lutnick.

Trump promised tariffs on automakers ever since his 2024 presidential candidacy. He urged the U.S. government to protect domestic manufacturers of automobiles using tariffs as an agent. He hoped that by increasing tariff rates, combined with tax breaks and other incentives, he would attract automobile companies which were previously producing overseas to make use of cheaper, more abundant labor and lower taxes.

On Wednesday, the president announced a flat 25% tariff rate on all automobiles entering the companies from overseas, even from American companies with foreign subsidiaries/mergers. "This will continue to spur growth that you’ve never seen before," the confident president said to reporters. The tariff is expected to be fully implemented on April 2nd, alongside many of his other tariffs that he promised. The White House said that over $100 billion in duties will most likely be collected within its first year.

In reaction to these tariffs, shares of many key automobile companies, from General Motors to Porsche, fell in the pre-market hours on Wednesday. Ford, meanwhile, rose in share price.