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OAN Staff Blake Wolf
5:50 PM – Wednesday, March 26, 2025
President Donald Trump announced on Wednesday that he will place a 25% tariff on automobile imports into the U.S., which is set to take effect on April 2nd.
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“This will continue to spur growth like you haven’t seen before,” Trump stated on Wednesday. “We’ll effectively be charging a 25% tariff. But if you build your car in the United States, there is no tariff.”
President Trump stated that the tariffs are expected to bring in between $600 billion and $1 trillion in revenue for the United States over the next two years.
“This number will be used to reduce debt greatly,” Trump stated. “Basically I view it as reducing taxes and reducing debt.”
“I think our automobile business will flourish like it’s never flourished before,” Trump continued.
President Trump dubbed April 2nd “liberation day,” as he is expected to announce more reciprocal tariffs to balance out trade disparities with international trading partners.
The tariffs also serve as an incentive for companies to manufacture products within the United States — especially companies who wish to avoid paying the extra fee.
White House officials have stated that foreign companies are expected to lower their prices to compensate for tariffs to make up for the increased fees, according to NPR.
Despite the Trump administration’s optimism, a recent Harris poll conducted for the Guardian found that 69% of independents, 57% of Republicans, and 99% of Democrats are concerned about the tariffs.
A recent study by Anderson Economic Group also found that blanket tariffs on Canada and Mexico could potentially raise car prices in the U.S. by as much as $12,000.
Last year, the United States imported $474 billion of automotive products, which included passenger cars worth $220 billion.
The Center for Automotive Research revealed that the tariffs have the potential to cause automakers to halt production, possibly leading to job losses within the industry.
“Over the longer term, we expect sales to fall, new and used prices to increase, and some models to be eliminated if those tariffs persist, and we’ve yet to hear details about tariffs on the European Union, Japan and South Korea,” stated Cox Automotive Chief Economist Jonathan Smoke. “Bottom line, lower production, tighter supply, and higher prices are around the corner, reminiscent of 2021.”
Nevertheless, President Trump has projected confidence in the policy, stating: “Have no fear, we will WIN everything!!!”
Trump also claimed that the tariffs “will lead to the construction of a lot of plants, in this case auto plants, and you’re going to see numbers that you haven’t seen both in terms of employment. It takes a little while, you’ll have great construction numbers initially, and then ultimately you’re going to have a lot of people making a lot of cars.”
“If they have factories here, they are thrilled. If they don’t have factories here, they’re going to have to get going and build them because otherwise they have to pay tariffs. It’s very simple. And most of them have pretty big factories here,” he continued.
Last year, the United States imported $474 billion of automotive products, which included passenger cars worth $220 billion.
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