A Look at Trump’s Tariff Plan to Revive the US Auto Industry

​​The U.S. trade deficit reached a record high of more than $1.2 trillion in 2024. Automobiles and parts accounted for nearly a quarter of that. In a bid to reverse the trade imbalance, President Donald Trump in February introduced a plan to impose reciprocal tariffs to “level the playing field” on trade and address what his administration called unfair trade practices imposed by other countries. The tariffs are set to go into effect on April 2, after officials determine the individual tariff rate for each country. Trump has repeatedly highlighted the automobile industry as a potential sector for tariffs. Automakers in the United States have undergone a rollercoaster ride since Trump announced a universal 25 percent tariff on Canadian and Mexican imports in February....