Report: Trump Folds, Won't Hold Automakers To Tariffs

Trump has already delayed tariffs on imported cars twice since his inauguration.

Photo by: Motor1.com

By: Anthony Alaniz

Mar 24, 2025 at 2:01pm ET

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US President Donald Trump’s proposed tariffs on the automotive industry might not go into effect on April 2. A new report suggests the administration could take a more targeted approach to implementing Trump’s economic vision, focusing on reciprocal tariffs toward certain countries instead of sectorial ones that apply to specific industries.

Trump first proposed a 25-percent tariff on auto imports from Canada and Mexico hours after his inauguration. He delayed them in early February for 30 days. The tariff went into effect on March 4, but Trump paused them again one day later, setting April 2 as the new deadline while announcing a 25-percent tariff on all auto imports to take effect the same day.

However, The Wall Street Journal reports that the administration might not announce tariffs that target specific industrial sectors on April 2, as previously proposed. According to the report, the fate of the tariffs on Canadian and Mexican auto imports remains uncertain. They might be delayed, tempered, or abandoned altogether in favor of reciprocal tariffs that could still include some goods from the US’s closest trading partners.

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The threat of tariffs has created uncertainty in the automotive industry. Automakers are considering a range of options to mitigate the potential new tax that could raise prices and hurt workers. Audi is considering passing some of the costs onto consumers while Hyundai isn't as worried about the potential fallout.

What Trump will likely announce on April 2 are reciprocal tariffs, but the last few months are proof that the administration is willing to change its mind at a moment’s notice, and nothing is certain.