Donald Trump Defends 25% Tariff on Foreign Automobiles, Targets China To Protect US Auto Industry

Washington, January 14: US President Donald Trump defended his tariff-driven trade policy and said a 25 per cent tariff on foreign automobiles was aimed at stopping what he described as an unfair surge of auto imports, with China at the center of his criticism. Speaking at the Detroit Economic Club, Trump said tariffs were essential to protecting American manufacturing and workers, particularly in the auto sector. “As I promised you, I’ve imposed a 25 per cent tariff on all foreign automobiles,” Trump said. “I’m standing up for the American auto worker like no president has ever stood up before.”

Trump said foreign automakers, including Chinese companies, were being forced to reconsider their strategies because of the tariff. “Let China come in, let Japan come in,” he said. “They are and they’ll be building plants, but they’re using our labor.” He said the tariffs were designed to ensure cars sold in the US are built in the country, rather than imported. “I want to build the cars here,” Trump said. Trump rejected arguments that tariffs hurt American consumers, saying foreign countries and companies were paying the cost. “The evidence shows overwhelmingly that the tariffs are not paid by American consumers,” he said. Donald Trump Announces 25% Tariffs on Countries Doing Business With Iran, Says ‘Order Is Final and Conclusive’.

“They’re paid by foreign nations and middlemen.” Trump said the auto tariffs were already driving new investment into the United States. “US auto factories are now seeing more than $70 billion of new investment,” he said. He highlighted commitments by major automakers as proof of the policy’s impact. “Ford has announced it will invest $5 billion across its Michigan and Kentucky plants, creating 4,000 new jobs,” Trump said. He also pointed to General Motors’ decision to shift production back to the United States. “GM is moving production of the Chevy Blazer and Equinox from Mexico right back here to America,” he said.

Trump said Stellantis was also expanding its US footprint. “Stellantis is investing $13 billion to expand its US-based manufacturing plant by more than 50 per cent,” he said. Trump framed the tariff policy as a direct response to years of industrial decline, which he blamed on trade practices by foreign competitors. “You lost 57 per cent of your car industry,” he said, referring to Detroit’s past decline. “The good news is you’re getting it back.”

He said China had benefited for decades from what he described as weak US trade enforcement. “China is one of our biggest taxpayers right now,” Trump said, referring to tariff revenue. Trump said tariffs were not just a trade tool but a national security measure. “It’s so great for national security,” he said. He also criticised legal challenges to his tariff authority, saying they were driven by foreign interests. “You have the Supreme Court now going to rule on whether or not we can use tariffs,” Trump said. India’s Auto Sector May Not Face Major Impact Due to Donald Trump’s US Tariff Hike.

“People that are foreign centric, China centric.” Trump said tariffs had helped slash the US trade deficit. “In a short period of time, we cut it by 62 per cent,” he said. He argued that tariffs had historically made the United States strong and wealthy. “It was the tariff that made America strong and powerful in past generations,” Trump said. Trump said his administration would continue to rely on tariffs to force manufacturing back into the country. “They were leaving,” he said. “Now they’re pouring back.” Automobiles have become a growing point of friction as Chinese carmakers expand globally and seek entry into major markets

(The above story first appeared on LatestLY on Jan 14, 2026 07:52 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).