President Trump Announces 25% Tariff On Imported Vehicles — Here’s What To Know

President Trump signed an executive order on Wednesday imposing a 25% on all vehicles and major component parts (engines, transmissions, powertrain parts, and electrical components) built outside of the United States.

Trump said the tariffs are intended to be permanent. The current tariff on most imported vehicles is 2.5%.

The tariff applies to cars built by American brands in other countries. Automakers will be able to deduct the value of parts originally made in the U.S. that are used in foreign-assembled cars.

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Tariff collections are scheduled to begin on April 3. Trump said that he did not discuss the decision with his cost-cutting advisor, Elon Musk, due to potential conflicts of interest stemming from his role as Tesla CEO.

Collection of tariffs on parts within the current United States-Mexico-Canada Agreement (USMCA) zone will be postponed up to a month as a process on collection will be developed, but will be applied to imported assembled automobiles starting on April 3.

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“It’s off to the races,” Trump said. “I think our automobile business will flourish like it’s never flourished before.”

This is a breaking story, check back for updates