Starting April 2, all automobiles manufactured outside the United States will be subject to a 25% tariff. The measure, imposed by President Donald Trump, aims to "protect the domestic automotive industry" and will mark an "Economic Liberation Day."
The decision will directly impact some of the brands and models that are assembled in Mexico and are the most popular among American consumers.
A report from Univisión details which six imported cars will be affected by this measure:
- Chevrolet Equinox – 219,071 units imported
- Toyota Tacoma – 213,091 units
- Nissan Sentra – 179,767 units
- Honda HR-V – 166,156 units
- Ford Maverick – 165,337 units
- Ford Bronco Sport – 148,215 units
Mexico is a key pillar in the automotive industry for the U.S. market. 80% of the vehicles assembled in Mexico are destined for the United States.
In the Mexican automotive industry, over 109,000 people are employed in vehicle assembly and more than 664,000 in the auto parts industry.
Trump was blunt in declaring that there will be no exceptions, not even for allies like Canada, Mexico, or European countries.
The policy will also apply to car parts, including engines and transmissions, which will be subject to the new tariffs by May 3 at the latest, unless they meet the requirements of the Treaty between Mexico, the United States, and Canada (T-MEC).
The U.S. government estimates that this measure could generate up to $100 billion annually, which would be allocated to infrastructure projects and reducing the national debt.
However, consumers are not happy because not only will new cars become more expensive, but visiting the mechanic for maintenance or to replace key parts will also be even costlier.
The stocks of major automobile manufacturers such as General Motors, Ford, and Stellantis have already experienced declines on the stock market. GM fell by more than 7%, while Ford and Stellantis dropped by over 4%, reflecting the sector's nervousness regarding the potential effects of the measure.
Manufacturers and experts warn that moving the entire production chain to U.S. soil is not a viable option in the short term, which could result in a significant increase in prices for consumers.
Frequently Asked Questions about Trump's Tariffs on Imported Cars
Which car brands have been most affected by Trump's tariffs?
The car brands most affected by Trump's tariffs are Chevrolet, Toyota, Nissan, Honda, and Ford. Models such as the Chevrolet Equinox, Toyota Tacoma, and Nissan Sentra, which are assembled in Mexico, are among the most imported to the United States and will now face a 25% tariff.
Why has Trump imposed a 25% tariff on imported cars?
Trump has imposed a 25% tariff on imported cars to protect the domestic automotive industry and reduce reliance on imports. This measure aims to boost internal production and generate revenue for infrastructure projects and to reduce the national debt.
How will tariffs affect American consumers?
Tariffs will cause an increase in the price of cars and parts in the United States. Consumers may face higher costs not only when purchasing new cars but also when maintaining and repairing their vehicles due to the rising costs of imported parts.
What is the expected economic impact of the new tariffs?
The U.S. government estimates that tariffs will generate up to $100 billion annually. This revenue will be allocated to infrastructure projects and to reduce the national debt, although there are also concerns about a potential increase in prices for consumers.
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