President Donald Trump announced Wednesday that, starting April 2, all imported cars and light-duty trucks will face a 25% tariff. Trump said the goal is simple: get automakers to build more vehicles in the U.S. and create more American jobs.
“You’re going to see prices coming down,” Trump said. “We’re already setting records for new plants.” He pointed to Honda’s decision to build the next-generation Civic in Indiana instead of Mexico as proof that the policy is already working.
The tariff only applies to vehicles made outside the U.S. Trump called the current system—where parts and cars are assembled across Mexico, Canada, and the U.S.—“ridiculous.” He also emphasized the new tariff is “permanent, 100%.”
Industry estimates say the average cost of an imported vehicle could rise by as much as $12,500. Even U.S.-made vehicles may go up in price because many still rely on foreign-made parts.
There may be some exemptions. A White House official said …