Intense discussions are ongoing ahead of April 2, which Trump has billed as "Liberation Day," when his next batch of tariffs will be unveiled.

Once again, Mexico’s president Claudia Sheinbaum has adopted a wait-and-see strategy. When US President Donald Trump announced steep tariffs on all cars shipped to the United States – a significant escalation in a global trade war – she stuck to pragmatism and patience.

Experts say the 25 percent import fee will make many cars more expensive, but it is not clear when, by how much or which models.

Trump says Americans don't need to speed car purchases to dodge 25% tariffs on imports beginning April 2 because the economy will 'boom.'

The new taxes, which are set to begin April 3 and expand in the following weeks, are estimated to raise the average cost of a car imported from another country by thousands of dollars. But repairs for vehicles that currently use foreign-made parts are also expected to get pricier — and, as a result, hike insurance costs farther down the road.

About 38% of U.S. imports from Canada fall under the USMCA ‒ a free trade deal Trump signed in 2019 ‒ meaning about 62% of goods from Canada will still be subject to tariffs, the Trump White House said. About 50% of imports from Mexico fall under the agreement, so about half of Mexican imports will be subject to the tariffs.

The 25% tariffs will be applied to imported passenger vehicles, including cars, SUVs, minivans, cargo vans and light trucks, according to a White House fact sheet released after Trump's Oval Office remarks. The tariffs will also be applied to key imported auto parts, including engines, powertrain parts and electrical components.

Higher production costs driven by Trump administration trade moves will likely push up new vehicle prices, analysts said. That could send more shoppers looking for used cars and trucks, pushing up prices for secondhand vehicles.