The steep tariff of 25% in vehicles imported to the United States came into effect on Thursday morning, when international leaders react and markets that were rolled from President Donald Trump’s announcement a few hours earlier from the larger tariff that will begin this weekend and next week.
Car rates, which apply to imported cars, SUVs, minivans, van cargo and light trucks, can increase the price of cars with thousands of dollars, according to experts.
Mercedes-Benz’s pre-mother-owned vehicles are available for sale at the Mercedes-Benz car dealer on April 2, 2025 in Los Angeles, California. German luxury car makers, who offer 11,000 US workers and assemble their SUVs in Alabama, are still affected by 25 percent imported car rates for President Trump.
Mario Tama/Getty Image
Overall, half of about 16 million vehicles purchased in the US last year were imported, according to the White House.
The White House is furious -reports the tariff as a means to protect the security and strength of the US national economy, by saying the US car industry has been damaged by excessive imports.
Experts say US buyers will almost certainly look at higher prices for foreign cars, due to increased tariffs to be forwarded to consumers. The sticker shock can also send a higher price for used vehicles.
The tariff is 25% in the main imported car parts, including engines and electrical components, are determined to start in effect later.
Car rates come into force only a few hours after Trump launched a long-promised extensive tariff plan that includes basic tax on imports from all trading partners as well as steeper in countries that wear levies on US goods.
President Donald Trump holds an executive order signed after delivering a statement of reciprocal rates during an event at Rose Garden at the White House, in Washington, DC, on April 2, 2025.
Saul Loeb/AFP Via Getty Images
“My American colleagues, this is the day of liberation,” Trump said from the White House Rose Garden, claiming his latest actions would free the US from dependence on foreign goods.
Under the plan, items imported from China will be beaten with what Trump is called “reciprocal type” of 34%; The goods imported from the European Union will be beaten at a rate of 20%.
Overall, the tariff announced by Trump “The level of approach that was not visible since the ‘Smoot-Hawley Tariff Law in 1930,'” Two experts at the Cato Institute, a Think Tank Libertarian, said in a statement, referring to the actions signed by President Herbert Hoover, who according to historians made damage to the country’s economic damage during large depression.
Last month, Trump also slapped 25% tariff for steel and aluminum imports and certain goods from China, Canada and Mexico.
Trump made his announcement on Wednesday after the stock market was closed for that day, but the futures stock plummeted on the news. Dow Jones Industrial Average fell 1,100 points or 2.7%. S& P 500 Futures lost 3.9% and NasdaQ-100 Futures fell 4.7%.
Autoworker retired Brian Pannebecker spoke when President Donald Trump listened during the event to announce a new rate at Rose Garden in the White House, April 2, 2025, in Washington, DC
Mark Schiefelbein/AP
International leaders condemned Trump’s announcement.
“China urged the United States to immediately cancel one -sided tariff steps and resolve differences with its trading partners through the same dialogue,” a spokesman for the Chinese Ministry of Trade said in a statement, with the reason that the tariff would “endanger the development of the global economy and supply chain stability.”
Trump’s announcement on Wednesday slapped 34% of tariffs in China was above the 20% tariff which he previously announced – brought the total tax collected to one of the largest US trading partners to 54%.
The European Union said he had “a strong plan to reply,” which will be conveyed by European Commission President Ursula Von Der Leyen on Thursday.
In a Facebook postItalian Prime Minister Giorgia Meloni said the targeted tariff for the European Union “Salah.”
He added, “We will do everything we can work towards an agreement with the United States, with the aim of avoiding a trade war that will surely weaken the West for other global players.”
Trade maneuvers have suppressed relations with Canada and Mexico, two main allies and neighbors. There is no country included in the list of countries that will be beaten with reciprocal rates.
Mexico said it would give a response this weekend.
ABC News’ Alexandra Hutzler, Leah Sarnoff and Max Zahn contributed to this report