The Trump administration's imposition of 25% tariffs on cars would violate the United States-Mexico-Canada Trade Agreement (USMCA) and the United States-South Korea Free Trade Agreement (KORUS), Reuters reported, citing experts.
On March 26, Trump announced that the United States would impose import tariffs of 25% on all cars manufactured outside the country.
As Reuters specified, the tariffs apply to key automotive parts, including engines, transmissions, powertrain components and electronics. The auto parts tariffs could take effect a month later, but no later than May 3, when the relevant notice is published.
On March 4, the US administration imposed a 25% tariff on almost all imports from Canada and Mexico and raised tariffs on goods from China from 10% to 20%. On March 6, Trump signed executive orders to postpone until April 2 the imposition of 25% import tariffs on goods from Canada and Mexico that fall under the trilateral trade agreement. He indicated that there would be no such relief after that date.