President Trump announces 25% tariff on all imported cars ahead of ‘liberation day’
US President Donald Trump has announced a new 25% tariff on all imported cars.
Signing an executive order, Mr Trump said the tax would kick in on 2 April – what he has called “liberation day”.
This is when all his retaliatory import tariffs are supposed to take effect, but they have been delayed before.
It comes amid the continued fallout from the Signalgate security breach in Washington.
What was said in the Signal chat?
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‘Another day of Signalgate’
The move ratchets up the global trade war Mr Trump himself kicked off.
Speaking late on Wednesday, Mr Trump said the proposal: “Will continue to spur growth. We’ll effectively be charging a 25% tariff.”
However, the tariffs could be complicated as even American car makers source components from around the world – meaning they could also face higher costs and lower sales.
The announcement also drew swift condemnation from the European Union and from Canadian Prime Minister Mark Carney, who called it a “direct attack” on Canadian workers.
During his second term, Mr Trump has used tariffs frequently as a trade weapon.
Donald Trump announcing the 25% tariff on imported cars.
He cited plans from South Korean car maker Hyundai to build a $5.8bn (£4.5bn) steel plant in Louisiana as evidence the economic measures would bring back manufacturing jobs.
Despite Mr Trump’s optimism, shares in General Motors fell by about 3% in Wednesday afternoon trading.
Ford’s stock was up slightly, but shares in Stellantis, the owner of Jeep and Chrysler, dropped nearly 4%.
Even American and foreign firms already with domestic plants still rely on Canada, Mexico and other countries for parts and finished vehicles – meaning prices could increase and sales decline as new factories take time to build.
Tariffs are a key part of Mr Trump’s efforts to reshape global trade relations.
He plans to impose what he calls “reciprocal” taxes on 2 April that would match tariffs and sales taxes levied by other nations.
He has already placed a 20% tax on all imports from China.
Similarly, he placed 25% tariffs on Mexico and Canada, with a lower 10% tariff on Canadian energy products.
Signal security breach
As Mr Trump was keen to talk up his tariffs, the rest of Washington was discussing the security breach that rocked the Capitol.
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In a group called “Houthi PC small group”, specific details of a US attack on Houthis were shared with intelligence director Tulsi Gabbard, national security adviser Mike Waltz, vice president JD Vance and more.
However, a senior journalist for the magazine The Atlantic, Jeffrey Goldberg, was also somehow added to the Signal group chat.
Goldberg published a story first on Monday about the incident.
The White House had sought to downplay the leak of the messages, saying no classified information had been disclosed.
Goldberg then published a follow-up story releasing the messages themselves earlier on Wednesday.
Concerns have been raised about the security of some of the most important members of the US administration using a commercial app.
During a hearing in front of Congress, some members outlined feared security issues with Signal.
US Defence Secretary Pete Hegseth has been linked to a second group chat about sensitive military operations, which he reportedly shared with his wife, brother and personal lawyer.
The messages sent via the Signal messaging app are again understood to have contained details of an attack on Yemen’s Iran-aligned Houthis in March.
The second chat group, initially reported by The New York Times, included about a dozen people. It revealed details of the schedule of the airstrikes, according to the Reuters news agency.
Two sources with knowledge of the matter told Sky News’ US partner network NBC News there were 13 people in the second chat group, and Mr Hegseth divulged the information despite an aide warning him about using an unsecure communications system.
Mr Hegseth’s wife, Jennifer, a former Fox News producer, has attended sensitive meetings with foreign military counterparts, while his brother was hired at the Pentagon as a Department of Homeland Security liaison and senior adviser.
Military details from the first chat group were revealed by a journalist from The Atlantic magazine who was accidentally added to the Signal app by national security adviser Mike Waltz.
Mr Hegseth then shared sensitive information with cabinet officials about last month’s airstrike on targets in Yemen, which was later leaked.
Read more from Sky News:
What is Signal?
Who is Pete Hegseth?
Mike Waltz (left) and Pete Hegseth (right) have used Signal to discuss sensitive government matters. Pic: AP
‘A non-story,’ says White House
But the White House has consistently defended Mr Hegseth.
Donald Trump dismissed the original leak as “something that can happen”.
Responding to the latest chat group, White House deputy press secretary Anna Kelly said: “No matter how many times the legacy media tries to resurrect the same non-story, they can’t change the fact that no classified information was shared.
“Recently-fired ‘leakers’ are continuing to misrepresent the truth to soothe their shattered egos and undermine the President’s agenda, but the administration will continue to hold them accountable.”
The “leakers” referred to in the White House statement are four senior officials who were ousted from the Pentagon last week as part of an internal leak investigation.
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Leaked war plans: ‘Fairly serious’
‘Hegseth put lives at risk’
The New York Times reported that the second chat – named “Defence | Team Huddle” – was created on Mr Hegseth’s private phone.
It detailed the same warplane launch times as the first chat.
Several former and current officials have said sharing those operational details before a strike would have certainly been classified, and their release could have put pilots in danger.
Democratic politicians have repeatedly called for Mr Hegseth to step down.
“We keep learning how Pete Hegseth put lives at risk,” Senate minority leader Chuck Schumer said in a post on X.
“But [Donald] Trump is still too weak to fire him. Pete Hegseth must be fired.”
The latest claims about Mr Hegseth emerged as Yemen’s Houthi rebels reported another wave of US airstrikes on Sunday, including on the capital Sanaa.
The Houthis said at least 12 people had been killed, with 30 more injured.
The US says its bombing campaign is in response to Houthi attacks on Red Sea shipping lanes.
DHL Express is suspending some shipments to the US as Donald Trump’s new tariff regime takes effect.
From 21 April, shipments worth more than $800 (£603) to US consumers from “any origin” will be temporarily suspended.
New rules that came into effect at the start of April made such shipments subject to increased customs checks.
“This change has caused a surge in formal customs clearances, which we are handling around the clock,” said the parcel delivery service.
Shipments going from business to business worth more than $800 aren’t affected by the suspension, but DHL warned they may also face delays.
Shipments under $800 to either businesses or consumers are not impacted, but one British cycle manufacturer suggested its US customers may need to split orders over $800 into “smaller shipments” to avoid the red tape.
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Trump: Tariffs are making US ‘rich’
Trump targeting ‘deceptive’ practices
From May, shipments from China and Hong Kong that are worth less than $800 “will be subject to all applicable duties”, according to the White House.
“President Trump is targeting deceptive shipping practices by Chinese-based shippers, many of whom hide illicit substances, including synthetic opioids, in low-value packages,” it said in a statement.
Until now, deliveries worth less than $800 didn’t incur any duties, which allowed low-cost companies Chinese like Shein and Temu to make inroads in the US.
Both have warned their prices will now rise because of the rule changes, starting on 25 April.
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