Camilla Jessen
A political fight over the future of cars in the U.S. heats up.
Donald Trump is once again putting car imports in the political crosshairs.
At a press conference last Thursday, the U.S. president announced he’s considering new, higher tariffs on imported cars.
He claims that this move is aimed at protecting American jobs and blocking California’s upcoming ban on new gasoline and diesel cars, set to take effect in 2035.
Currently, imported cars face a 25 percent duty, according to Boosted.
Trump didn’t specify how much higher the new tariffs might go—or when they could be introduced—but his message was clear: if carmakers want to sell in the U.S., they should build their factories there.
“The higher the tariffs, the more likely it is that car brands will build factories here,” Trump said, adding that his administration’s policies are already drawing results.
He pointed to fresh investments from domestic giants like Ford and General Motors—totaling $4 billion—as proof that his strategy is working.
What It Means for Car Buyers
Foreign automakers are closely watching the situation.
Hyundai has already hinted that higher tariffs could mean price hikes for American consumers.
And there’s already evidence of an impact. According to Cox Automotive, new car prices in the U.S. rose by 2.5 percent in April.
Meanwhile, imports of brand-new vehicles have plummeted—a dramatic 72 percent drop, according to the same research firm.
The European Automobile Manufacturers Association (ACEA) has yet to respond, but concerns are mounting across the global auto industry.
Trump’s tariff threats also serve as a direct challenge to California’s green vehicle goals. The state plans to ban the sale of new combustion-engine cars starting in 2035, pushing electric vehicles as the future.