Trump announces 25% auto tariffs amid rattled markets and a global trade war

WASHINGTON − President Donald Trump on Wednesday imposed 25% tariffs on imported automobiles, barreling forward with a whiplash economic strategy that has rattled markets and ignited a global trade war.

Trump detailed the tariffs, which will start at 2.5% and rise to 25% on all foreign cars and light trucks, in front of reporters in the Oval Office.

“This is the beginning of Liberation Day in America,” Trump said before signing an executive order directing the tariffs, which will go in effect April 2. “We’re going to charge countries for doing business in our country and taking jobs, taking our wealth, taking so much out of our country."

The tariffs will also apply to some imported auto parts, including engines and transmissions, according to the White House.

Automobiles that fall under the umbrella of imports protected in the Canada-United States-Mexico Agreement — a trade deal orchestrated by Trump in his first term — won’t be subject to the full tariff rate. Instead, the U.S will only levy tariffs on the foreign parts that make up vehicles imported from Canada and Mexico.

U.S. stocks tumbled in after-hours trading after the auto announcement. Futures contracts tied to the broad S&P 500 index were down more than 1%, while those linked to the tech-heavy Nasdaq were off nearly 2% in the late afternoon.

Automaker stocks were also lower: General Motors Company shares lost nearly 5% and shares of Ford Motor Company, the only major U.S. carmaker to end the trading day higher, were more than 2% lower.