U.S. President Donald Trump announced new tariffs of 25% on foreign-made automobiles during a White House briefing Wednesday, with the policy set to take effect April 2. The move, framed as a measure to boost domestic manufacturing and reduce national debt, has drawn sharp criticism from economists warning of higher consumer costs.
"We're signing the order today. It goes into effect April 2," Trump stated, emphasizing a shift from the current 2.5% base tariff. The policy applies to all cars not manufactured in the U.S., with the administration claiming it will incentivize production relocation and generate government revenue.
However, analysts caution that the tariffs could disrupt global supply chains and increase prices for U.S. buyers, compounding existing inflationary pressures. The announcement follows ongoing debates about trade policy's role in balancing industrial growth and consumer welfare.
