by Ray Collado

Thu, March 27th 2025 at 9:23 PM

Updated Thu, March 27th 2025 at 9:26 PM

CHATTANOOGA, Tenn. — President Trump announced 25% tariffs on all cars shipped to the United States on Wednesday.

The move comes amid escalating trade tensions between the U.S., Mexico, China and Canada.

Officials say the new tariffs will apply to foreign-made cars and car parts, including engines and transmissions.

Shawn Fain, President of the United Auto Workers union, says this is a step in the right direction for auto workers.

He says the new tariffs will boost U.S. manufacturing and grow the American workforce.

They got to be standard setting jobs, jobs that people can raise a family on and don’t have to work two jobs or three jobs or work seven days a week just to scrape to get by, says Fain.

White House officials say the new tariffs will apply to sedans, SUVs, crossovers, minivans, cargo vans and light trucks.

We reached out to Volkswagen for a statement.

They pointed us to Auto Drives America, a trade association that represents V.W.

Auto Drives America says tariffs will increase production costs for cars in the U-S.

In a statement, they say:

The tariffs imposed today will make it more expensive to produce and sell cars in the United States, ultimately leading to higher prices, fewer options for consumers, and fewer manufacturing jobs in the U.S.

The new tariffs are set to take effect on April 3 at 12:01 am ET.

Depend on us to keep you informed as we learn more.