Update (1600ET): President Trump has announced a 25% tariff on all cars not made in the US.
“This will continue to spur growth,” Trump told reporters.
Trump confirmed that these new tariffs are in addition to existing tariffs and are expected to result in $100 billion in revenues.
To underscore his seriousness, Trump said, “This is permanent.”
In addition to the tariffs, Trump discussed his plan to allow Americans to deduct interest payments on cars that are made in America.
If the car is built in the US, there will be no tariffs.
"We are going to charge countries for doing business in our country and taking our jobs, taking our wealth, taking a lot of things that they have been taking over the years."
GM and Ford shares are tumbling further on the news...
European and Canadian officials have already thrown their teddy-bears out of the stroller.
Ontario Premier Doug Ford (who folded like broken deckchair on his last threat to hike electricity costs to Americans), warned that:
...he'll "encourage Carney to target US automobiles... and will inflict as much trade pain as possible."
Canadian PM Mark Carney commented that US tariffs are a "direct attack" on Canadian auto workers, adding that the Trump tariffs "will hurt us."
"We will defend our workers, our companies, and our country."
European Commission Chief Ursula von der Leyen immediately posted her disappointment on X:
I deeply regret the US decision to impose tariffs on European automotive exports.
The automotive industry is a driver of innovation, competitiveness, and high quality jobs, through deeply integrated supply chains on both sides of the Atlantic.
As I have said before, tariffs are taxes – bad for businesses, worse for consumers equally in the US and the European Union.
We will now assess this announcement, together with other measures the US is envisaging in the next days.
The EU will continue to seek negotiated solutions, while safeguarding its economic interests.
As a major trading power and a strong community of 27 Member States, we will jointly protect our workers, businesses and consumers across our European Union.
"Our automobile industry will flourish like it's never flourished before," Trump commented, seemingly unflapped by the possibility of retaliation.
There's a lot of nations to upset...
The auto tariffs are part of a broader reshaping of global relations by Trump, who plans to impose what he calls “reciprocal” taxes on April 2 that would match the tariffs, sales taxes charged by other nations.
* * *
Update (1315ET): White House Press Secretary Karoline Leavitt just confirmed that President Trump will hold a press conference at 4pmET today to announce auto tariffs.
The level and scope of the auto tariffs are not clear, including what, if any, exemptions would be included or considered.
It’s also unclear if the tariffs would go into effect immediately or over time, and whether they would hit finished vehicles or also auto parts.
* * *
Following President Trump's comments earlier in the week that he would detail the scale of auto levies in the coming days, Bloomberg reports that - citing the usual people familiar with the matter - the Trump administration is readying an announcement on auto tariffs as soon as today.
Bloomberg adds that the people shared the timing of the expected announcement on condition of anonymity, to discuss plans not yet made public.
One of the people, though, cautioned that the president’s plans could still shift.
This is a move that would escalate Trump's fight with global trading partners ahead of a broader tariff push next week.
The broad market was already lower but accelerated on the report...
Treasury yields also sank...
The president has said the levies will help spur growth in the domestic auto sector and force companies to move more production to the US.
The move risks disrupting operations for North American automakers, who rely on highly integrated chains across the US, Mexico and Canada; and Ford and GM shares are falling on the report.
Minutes after Bloomberg's report, the following headlines hit:
-
*GM CEO MARY BARRA TO MEET TRUMP ADMIN. OVER TARIFFS: FREE PRESS
-
*FORD CHAIR BILL FORD TO MEET TRUMP ADMIN THIS WEEK: FREE PRESS
The level and scope of the auto tariffs are not clear, including what, if any, exemptions would be included or considered. It’s also unclear if the tariffs would go into effect immediately or over time.
Update (1600ET): President Trump has announced a 25% tariff on all cars not made in the US.
[embedded content]
“This will continue to spur growth,” Trump told reporters.
Trump confirmed that these new tariffs are in addition to existing tariffs and are expected to result in $100 billion in revenues.
To underscore his seriousness, Trump said, “This is permanent.”
In addition to the tariffs, Trump discussed his plan to allow Americans to deduct interest payments on cars that are made in America.
If the car is built in the US, there will be no tariffs.
“We are going to charge countries for doing business in our country and taking our jobs, taking our wealth, taking a lot of things that they have been taking over the years.”
GM and Ford shares are tumbling further on the news…
European and Canadian officials have already thrown their teddy-bears out of the stroller.
Ontario Premier Doug Ford (who folded like broken deckchair on his last threat to hike electricity costs to Americans), warned that:
…he’ll “encourage Carney to target US automobiles… and will inflict as much trade pain as possible.”
Canadian PM Mark Carney commented that US tariffs are a “direct attack” on Canadian auto workers, adding that the Trump tariffs “will hurt us.”
“We will defend our workers, our companies, and our country.”
European Commission Chief Ursula von der Leyen immediately posted her disappointment on X:
I deeply regret the US decision to impose tariffs on European automotive exports.
The automotive industry is a driver of innovation, competitiveness, and high quality jobs, through deeply integrated supply chains on both sides of the Atlantic.
As I have said before, tariffs are taxes – bad for businesses, worse for consumers equally in the US and the European Union.
We will now assess this announcement, together with other measures the US is envisaging in the next days.
The EU will continue to seek negotiated solutions, while safeguarding its economic interests.
As a major trading power and a strong community of 27 Member States, we will jointly protect our workers, businesses and consumers across our European Union.
“Our automobile industry will flourish like it’s never flourished before,” Trump commented, seemingly unflapped by the possibility of retaliation.
There’s a lot of nations to upset…
The auto tariffs are part of a broader reshaping of global relations by Trump, who plans to impose what he calls “reciprocal” taxes on April 2 that would match the tariffs, sales taxes charged by other nations.
* * *
Update (1315ET): White House Press Secretary Karoline Leavitt just confirmed that President Trump will hold a press conference at 4pmET today to announce auto tariffs.
The level and scope of the auto tariffs are not clear, including what, if any, exemptions would be included or considered.
It’s also unclear if the tariffs would go into effect immediately or over time, and whether they would hit finished vehicles or also auto parts.
* * *
Following President Trump’s comments earlier in the week that he would detail the scale of auto levies in the coming days, Bloomberg reports that – citing the usual people familiar with the matter – the Trump administration is readying an announcement on auto tariffs as soon as today.
Bloomberg adds that the people shared the timing of the expected announcement on condition of anonymity, to discuss plans not yet made public.
One of the people, though, cautioned that the president’s plans could still shift.
This is a move that would escalate Trump’s fight with global trading partners ahead of a broader tariff push next week.
The broad market was already lower but accelerated on the report…
Treasury yields also sank…
The president has said the levies will help spur growth in the domestic auto sector and force companies to move more production to the US.
The move risks disrupting operations for North American automakers, who rely on highly integrated chains across the US, Mexico and Canada; and Ford and GM shares are falling on the report.
Minutes after Bloomberg’s report, the following headlines hit:
The level and scope of the auto tariffs are not clear, including what, if any, exemptions would be included or considered. It’s also unclear if the tariffs would go into effect immediately or over time.
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