Donald Trump has confirmed that he will impose tariffs of 25 per cent on all cars not made in the US on April 2.
The announcement came after White House press secretary Karoline Leavitt hinted at the US President announcing tariffs on auto imports earlier this afternoon.
"We’re signing an executive order today that’s going to lead to tremendous growth in the automobile industry," Trump said.
"What we’re going to be doing is a 25 per cent tariff on all cars that are not made in the United States. If they’re made in the United States, there’s absolutely no tariff."
Looking ahead to the tariffs being implemented, Trump added: "We have a lot of exciting things, but to me, this is one of the most exciting now - outside of one specific day, and that’s Liberation Day."
The tariffs are due to come into effect from April 2.
Trump also said: "This is permanent. But if you build your car in the United States there is no tariff."
As collections are due to be collected as soon as the following day, Trump insisted the policy would drive "tremendous growth" for the American car industry, feeding increased investment and employment across the nation.
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Experts have suggested that the tariffs will primarily impact brands including Hyundai and Toyota.
Others have also warned that the move could stress international relationships with countries such as Germany and South Korea.
Responding to the new tariff, President of the European Commission Ursula von der Leyen said: "I deeply regret the U.S. decision to impose tariffs on EU automotive exports.
"Tariffs are taxes – bad for businesses, worse for consumers, in the US and the EU. The EU will continue to seek negotiated solutions, while safeguarding its economic interests."
The measure was announced after weeks of speculation, with Trump first flirting with the idea of a 25 per cent tariff on imported vehicles in February.
Earlier this week, the 47th President teased that such a measure could come in "the very near future".
The auto tariffs were originally meant to be one of the retaliatory taxes to be announced on Trump's "Liberation Day" on April 2.
Meanwhile, the US is also imposing a 20 per cent tax on China's imports, a 25 per cent tariff on neighbours Mexico and Canada, as well as a 10 per cent tax on energy products north of the border.
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The announcement came after White House press secretary Karoline Leavitt hinted at the US President announcing tariffs on auto imports earlier this afternoon.
"We’re signing an executive order today that’s going to lead to tremendous growth in the automobile industry," Trump said.
"What we’re going to be doing is a 25 per cent tariff on all cars that are not made in the United States. If they’re made in the United States, there’s absolutely no tariff."
Looking ahead to the tariffs being implemented, Trump added: "We have a lot of exciting things, but to me, this is one of the most exciting now - outside of one specific day, and that’s Liberation Day."
The tariffs are due to come into effect from April 2.
Trump also said: "This is permanent. But if you build your car in the United States there is no tariff."
As collections are due to be collected as soon as the following day, Trump insisted the policy would drive "tremendous growth" for the American car industry, feeding increased investment and employment across the nation.
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Experts have suggested that the tariffs will primarily impact brands including Hyundai and Toyota.
Others have also warned that the move could stress international relationships with countries such as Germany and South Korea.
Responding to the new tariff, President of the European Commission Ursula von der Leyen said: "I deeply regret the U.S. decision to impose tariffs on EU automotive exports.
"Tariffs are taxes – bad for businesses, worse for consumers, in the US and the EU. The EU will continue to seek negotiated solutions, while safeguarding its economic interests."
The measure was announced after weeks of speculation, with Trump first flirting with the idea of a 25 per cent tariff on imported vehicles in February.
Earlier this week, the 47th President teased that such a measure could come in "the very near future".
The auto tariffs were originally meant to be one of the retaliatory taxes to be announced on Trump's "Liberation Day" on April 2.
Meanwhile, the US is also imposing a 20 per cent tax on China's imports, a 25 per cent tariff on neighbours Mexico and Canada, as well as a 10 per cent tax on energy products north of the border.
Find Out More...