According to Refinitiv, US President Trump suddenly threw out a "car tariff nuclear bomb" on Wednesday (March 26), announcing a 25% tariff on all imported cars starting from April 3, triggering a severe shock in the global automotive industry chain. This decision not only overturns the exemption expectations of traditional trading partners, but also has the potential to reshape the pricing system and competitive landscape of the US automotive market.

1. Specific content of tariff policy

President Trump made it clear in the Oval Office that "we will impose a 25% tariff on all non American made cars." This statement seems to rule out the possibility of granting exemptions to free trade agreement partners such as Canada and Mexico. It is worth noting that the new tariffs will be imposed in addition to the existing 2.5% passenger car tariffs and 25% light truck tariffs. The White House has stated that components that comply with the rules of the USMCA will temporarily remain tax-free.

2. Feedback from all parties and impact assessment

Canadian Prime Minister Mark Carney strongly criticized this decision, stating that it "violates the agreement" and constitutes a "direct attack on Canadian workers". The EU also expressed "deep regret" but stated that it will continue to seek a negotiated solution. According to data from S&P Global Automotive, nearly half of the new cars in the US market will come from imports in 2024, with Mexico being the largest exporter of cars to the US. Industry analysts predict that the new tariffs may lead to a price increase of around $6000 for imported cars, equivalent to giving each car a "golden license plate".

3. Market response and industry impact

After the announcement, there were significant fluctuations in the automotive stock market: General Motors' stock price fell by 8%, Ford's fell by 5%, and Tesla's rose by about 1% due to localized production. The United Auto Workers supports this policy and believes it will help protect American employment; But Autos Drive America, representing international car companies, warns that this will make it even more difficult for car prices, which have already risen due to the pandemic, to bear. The Trump administration also stated that it is considering introducing a tax credit policy for car loan interest to stimulate demand.

【 Summary 】

The Trump administration's decision to impose import tariffs on automobiles will have far-reaching impacts on multiple levels. In the short term, consumers may face pressure from rising car prices; In the long run, this policy may reshape the global automotive supply chain layout. As trading partners such as Canada consider taking countermeasures, the global automotive trading system is facing new challenges and adjustments. As analysts point out, the ultimate impact of this policy will depend on the response measures of all parties and the progress of subsequent negotiations.