Donald Trump¡¯s 25% auto tariff faces heat, netizens say ¡®he flip-flops every other day¡¯ fearing higher car costs

President Donald Trump has announced a 25% tariff on imported cars, claiming it will generate $100 billion annually and boost domestic manufacturing. The tariff will take effect from April 3, leaving automakers with little time to adjust.

¡°This will continue to spur growth. We will effectively be charging a 25% tariff,¡± Trump told reporters, emphasizing that the move is permanent. He believes the policy will push automakers to shift production to the US and reduce reliance on what he calls a ¡°ridiculous¡± global supply chain.

Trump has long advocated for auto tariffs as a way to cut the budget deficit and strengthen the American auto industry. However, industry experts state that instead of helping, the move could lead to increased costs for both car manufacturers and consumers.

Higher car prices and fewer buyers?

With the tariff in place, the price of imported cars is expected to rise by around $12,500 per vehicle. Since the average price of a new car in the US is already close to $49,000, middle-class buyers may struggle to afford new vehicles. According to Economist Mary Lovely: as new cars become more expensive, many households will likely hold on to their aging vehicles instead of purchasing new ones. This could slow down car sales, impacting the auto industry more than anticipated.

How will the auto industry be affected?

The US imported nearly 8 million cars and light trucks last year, valued at $244 billion, with Mexico, Japan, and South Korea being the top suppliers. Additionally, auto parts worth $197 billion came from Mexico, Canada, and China. With the new tariffs, automakers will have to either absorb the costs, pass them on to consumers, or restructure their entire supply chains¡ªa process that could take years.

While Trump claims that the tariffs will bring more factory openings to the US, industry leaders warn that shifting production is not as simple as imposing a tax. Automakers rely on global supply chains, and restructuring them is an expensive and time-consuming process.

Global backlash and trade war risks

Trump¡¯s decision has sparked criticism from global leaders. Canadian Prime Minister Mark Carney has vowed to protect Canadian businesses, while the European Union (EU) has warned that the tariffs could harm trade relations and increase costs for consumers.

In response, the EU has threatened to impose a 50% tariff on US spirits. Trump retaliated by suggesting a potential 200% tax on European alcohol, raising fears of an escalating trade war. If other nations impose countermeasures, the global auto industry could face serious disruption.

Netizens react: Fear of rising prices for all cars

Trump and his tariffs be like pic.twitter.com/Qg6UX9POvk

¡ª rhum (@rhum01) March 27, 2025

The tariff announcement has sparked strong reactions on social media. Many netizens argue that Trump¡¯s policy ignores a crucial fact: American-made cars rely on foreign parts.

One user wrote, ¡°Trump says he won¡¯t impose tariffs on American-made cars, but he doesn¡¯t realize that American cars use a lot of foreign-made parts. If tariffs hit imported parts, even American cars will get more expensive.¡± Another user highlighted the heavy impact on European automakers, by posting: ¡°Porsche and Mercedes-Benz will be hit hardest by Trump¡¯s latest trade move, facing a potential €3.4 billion blow from new US tariffs on imported cars.¡± Some dismissed the tariffs as just another unpredictable policy shift, with one user commenting, ¡°They can¡¯t possibly still be freaking out. They¡¯re just trying to dump markets to get a better entry. Trump flip-flops tariffs every other day¡ªit¡¯s a ¡®so what¡¯ at this point!¡±

They can¡¯t possibly be still freaking out .
They are trying to dump
Markets to get a better entry .
Trump flip flops tariffs every other day . It¡¯s a so what at this point ! More ballers praying on the weak ??

¡ª Lauren Johnson (@LaurenJohn3049) March 27, 2025

As concerns over higher car prices grow, many are questioning whether the tariff will truly benefit American manufacturing or simply make cars unaffordable for the average consumer.