Trump announces 25 per cent tariff on all auto imports to the U.S.

Trump’s latest tariff move is the first to hit since the federal election began four days ago, but the president’s tariffs and ongoing threat to annex Canada have become the top issue for a large number of Canadians ahead of the April 28 vote.

Trump said duties will take effect on April 2, with tariff collection beginning the following day. Trump said “this will continue to spur growth like you haven’t seen before.”

“If you build your car in the United States, there’s no tariff,” Trump said in the Oval Office.

There appeared to be no carve outs for vehicles built under the terms of the Canada-U.S.-Mexico Agreement on trade, negotiated during the first Trump administration. The North American automobile industry is integrated among Canada, Mexico and the United States.

Under the trade pact, also called CUSMA, rules of origin require 75 per cent North American content for passenger and light trucks in order to be tariff-free. Rules require 70 per cent of a vehicle manufacturer’s steel and aluminum to be North American. There are also rules around labour.

Trump said the automobile tariffs were permanent and automakers would “have to move their parts divisions back to the United States.” The president said “if parts are made in America, and a car isn’t, those parts are not going to be taxed or tariffed.”

“For the most part I think it’s going to lead cars to be made in one location,” Trump said.

The president’s on-again, off-again trade war has caused uncertainty in markets and the automobile sector. Shares of the Big Three automakers — Stellantis, Ford and General Motors — all slid in after hours trading Wednesday. Tesla’s stock was also down.

Ontario Premier Doug Ford posted on social media that “President Trump is at it again.”

“His 25 per cent tariffs on cars and light trucks will do nothing more than increase costs for hard-working American families,” Ford posted. “U.S. markets are already on the decline as the president causes more chaos and uncertainty. He’s putting American jobs at risk.”

Carney posted on social media earlier Wednesday that auto parts cross the Canada-U.S. border six times on average before final assembly, adding that “in a trade crisis, that’s a vulnerability.”

“It’s time to build more cars right here at home with an All-In-Canada auto manufacturing network,” he posted.

Conservative Leader Pierre Poilievre said his message to Trump after the latest tariff announcement was to “knock it off.”

“These tariffs are simply causing chaos in markets. They are dislocating workers on both sides of the border.” Poilievre said at a campaign stop in Montmagny, Que. before Trump confirmed the tariffs. “Stop threatening Canada with tariffs. Stop talking about our sovereignty.”

Trump cited a conversation with Stellantis, Ford and General Motors when he imposed a partial pause on economy-wide tariffs on Canada and Mexico earlier this month. It’s not clear whether those sweeping across-the-board tariffs are set to return next week after Trump said Tuesday that Canada and Mexico had “stepped it up.” The White House has not responded to a request for a timeline.

Trump did move forward earlier this month with 25 per cent tariffs on all steel and aluminum imports to the U.S., including Canadian products, which increased concern among automobile makers.

The president is also set to implement what he calls “reciprocal” tariffs on Wednesday by raising U.S. duties to match the tax rates that other countries charge on imports.

by Kelly Geraldine Malone • Canadian Press

Trump announces 25 per cent tariff on all auto imports to the U.S.

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