Cars and Auto Parts Are Among the Main Imports of the U.S.
On Wednesday, President Donald Trump announced a 25 percent tariff on imports of passenger cars, light trucks and automobile parts, saying that excessive imports of both threaten America's industrial base and thus pose a threat to national security. The tariffs, scheduled to go into effect on April 3, will apply to hundreds of billions worth of imports, as passenger cars and automotive parts are among the country's main imports.
According to the U.S. Census Bureau, passenger car imports amounted to $214 billion last year, with auto parts adding another $197 billion to the equation. While cars imported from Canada and Mexico will be partly exempt from the tariffs depending on the share of American parts used in each model, the new levies will still deal a significant blow to both countries' automotive industries, which have been deeply intertwined with the U.S. car industry for decades thanks to free trade agreements like NAFTA and USMCA.
Last year, the United States imported around $3.27 trillion worth of goods, with Mexico, China and Canada accounting for more than 40 percent of that total. Among the top imported goods are cars, car parts, pharmaceuticals and all kinds of technology, be it smartphones, computers or semiconductors. Experts have warned that all of these products would likely become significantly more expensive if the Trump administration went through with its tariff plans.