WASHINGTON (AP) — On Wednesday, President Donald Trump will unveil new tariffs on auto imports. The White House argues that this initiative will promote domestic manufacturing, but it may also place financial strain on automakers reliant on global supply chains.
White House press secretary Karoline Leavitt mentioned that details regarding the tariffs will be revealed during a news conference at 4 p.m. EST. She noted that it will be up to the Republican president to elaborate on his proposals to tax foreign-made automobiles and parts, a plan that could prove challenging since even U.S. automakers obtain components from around the globe.
As of Wednesday afternoon, General Motors’ shares have declined approximately 1.7%, while Ford’s stock has seen a roughly 1.5% drop.
Trump has consistently stated that tariffs on auto imports will be a defining policy of his presidency, hoping that these taxes will drive production back to the United States. However, both U.S. and international automakers with local facilities still rely on parts from Canada, Mexico, and other countries, which could lead to higher auto prices and reduced sales as new factories take time to establish.
“We are going to be doing automobiles, which you’ve known about for a long time,” Trump commented on Monday. “We’ll be announcing that fairly soon, probably in the next few days.”
The auto tariffs are part of Trump’s larger strategy to reshape global relations, as he plans to impose what he refers to as “reciprocal” taxes on April 2, aiming to match tariffs and sales taxes applied by other countries.
Trump has already implemented a 20% import tax on all goods from China due to its involvement in fentanyl production. He has also enforced 25% tariffs on Mexico and Canada, with a reduced 10% tax on Canadian energy resources. Some components of the tariffs on Mexico and Canada have been paused, including those affecting autos, after automakers raised concerns. In response, Trump granted them a 30-day reprieve, set to expire in April.
Leavitt is among three officials from the Trump administration who are facing a lawsuit from The Associated Press on First and Fifth Amendment grounds. The AP alleges that the three are retaliating against the news agency for editorial choices they disagree with. The White House asserts that the AP is not complying with an executive order requiring the Gulf of Mexico to be referred to as the Gulf of America.
