How Trump’s presidency is reshaping automotive logistics: A timeline of tariffs, trade disputes, and EV policy shifts

Last updated 15 April

US president Donald Trump’s tariffs have been changing since ‘Liberation Day’, and the uncertainty has caused the automotive supply chain to take mitigating actions. Here’s what we know so far…

Breakdown of tariffs, tariff stacking and USMCA compliance

As of 15 April, these are the stackable tariffs facing the automotive industry affecting vehicle imports from Canada and Mexico: 

• 25% tariff on all imported vehicles
• 25% tariff on all imported goods to the US (Also referred to as the International Emergency Economic Powers Act tariff, or IEEPA tariff, or fentanyl tariff), which is stacked onto the vehicle tariff, equalling 50% total tariff
• If non-compliant with USMCA rules, additional 2.5% tariff stacked on top of the IEEPA 25% tariff, and 25% vehicle tariff equalling 52.5% in total
• If USMCA-compliant, 25% auto import tariff still applies

Follow Automotive Logistics’ timeline below to see some of the pivotal events for the automotive industry during the last year. For full analysis of each story, see our dropdown of grouped stories in the series above, or the boxout at the end of this article. 

Timeline of Trump tariffs

July 2024

Tesla pauses its plans to build a new gigafactory in Mexico until after the US election. The OEM had first announced plans for the gigafactory near Monterrey in Nuevo Leon in March 2023 and it was originally expected to be operating by the first quarter of 2025. In a financial update, the carmaker said uncertainty surrounding the tariffs would make it impractical to invest heavily in the plant, but Mexican government officials have stated that the OEM has received $135m in incentives to build the factory.

November 2024

Trump wins the US election, plunging the North American supply chain into further uncertainty and unpredicatability, with questions arising about Canadian and Mexican imports and the USMCA, Chinese and European trade flows, and investment in EVs.  Analysts warn of USMCA violation and the impact on the automotive supply chain.

Meanwhile, Toyota announces plans for a $1.4 billion investment in Mexico to renovate its Beja California and Guanajuanto facilities. 

December 2024

Mexico and Canada warn the US against a trade war, following Trump’s promise of 25% tariffs on imports to the US.

January 2025

Trump is sworn in as president on January 20, and reaffirms his plan to impose 25% tariffs on imports from Mexico and Canada from February 1.

The president promises to“retake” the Panama Canal, claiming it is operated by China. If action is taken to take control of the waterway, the impact would be felt heavily by the automotive supply chain.

In the same month, Trump halts EV incentives with a pause on funding from the Inflation Reduction Act (IRA). In the short-term, the move could help balance EV supply and demand, but is likely to reduce investment in EV manufacturing and logistics in the US.

February 2025

Toyota announces it will make its own batteries at its plant in North Carolina and will begin local supply in April, showing commitment to EV battery production in the US despite Trump’s announcement about pausing IRA funding. 

Threats are made by Trump to impose tariffs of 25% on auto parts and metals imports from Canada.

China retaliates against Trump’s auto tariffs with 10% duty on US vehicles and file a complaint with the World Trade Organization (WTO).

Ford’s CEO James Farley warns of serious financial impacts on the automotive sector if Trump’s threatened tariffs persist, while tensions between the US and Panama ramp up further over the canal, as the US secretary of state accuses the Panama Canal of being controlled by the Chinese Communist Party.

Rather than pull back on tariff threats, Trump aims toimpose reciprocal tariffs around the world, triggering potential trade wars that could impact automotive logistics networks and dampen investment. He says he will reveal more about his promised tariffs of 25% on vehicles on April 2.

March 2025

US tariffs of 25% come into force on imports from Canada and Mexico, and 20% on imports from China (March 4).

Both China and Canada retaliate with tariffs on the US.

Trump then calls a one-month exemption for carmakers in compliance with the USMCA deal, while Blackrock agrees to buy two ports on Panama Canal, owned through the Panama Ports Company by Hong-Kong company CK Hutchinson Holdings. It follows Trump’s false claims that China is running the Panama Canal.

Global tariffs of 25% on all steel and aluminium imports to the US are imposed. The EU retaliates with tariffs on €26bn ($28bn) of US goods, to come into play in April.

BMW and Audi both call for tariff-free trade in North America, as neither OEM complies with USMCA rules on local content for production in Mexico. 

There is a surge of vessel movements as OEMs scramble to reroute ships bound for the US from Asia and Europe. Meanwhile, OEMs look to diversify manufacturing as quickly as possible. 

D-Day dates for tariff implementation are set, with 25% tariffs on imported vehicles to come into play 2 April, and 25% tariffs on imported components on 3 May.

April 2025

Liberation Day tariffs

On what Trump has called “Liberation Day”, 2 April, he announced 25% tariffs placed on all vehicle imports from the US, effective immediately, and confirms the 25% tariffs on imports of vehicle parts to the US from next month on 3 May. The list of parts that will be affected includes engines, powertrains and electrical components. Vehicles that comply with USMCA trade rules will be exempt temporarily, with importers only having to pay the 25% tariff on the non-US content.

At the same time, Trump announced a tariff of at least 10% on all imports globally, taking effect on 5 April. However, vehicles, car parts, and steel and aluminium imports already subject to tariffs will not be subject to the additional reciprocal tariffs.

Individualised reciprocal higher tariffs have also been imposed on imports from countries with which the US has the largest trade deficits, and will come into effect 9 April. 

Following Trump’s tariff announcement, stock prices of major OEMs in the US fell across the board on the NYSE, including Ford, GM, Stellantis, Tesla, Rivian and Toyota Motor North America.

OEMs began to take action to mitigate risk, with JLR pausing all vehicle exports to the US, Stellantis halting production in Canada and Mexico and laying off 900 people at 5 plants in the US, and VW Group suspending vehicle shipments from Mexico to US, with its Audi division suspending exports to the US from Europe and Mexico.

Steel and aluminium prices jump, with Midwest hot-rolled coil prices up 21% since the tariffs of 25% on the materials. 

And trade talks continue, as Trump rejects the EU’s “zero for zero” tariff deal proposal, and threatens 50% tariffs on China in response to Beijing’s threat of a 34% tariff on US imports to China. China’s government says it will “fight to the end” if trade war continues to escalate.

Trump hikes tariffs on Chinese imports up to 104%, and China responds with tariffs on US imports of 84%.

The European Commission’s proposal to introduce trade countermeasures against the US steel and aluminium tariffs is approved by European Union member states, following a meeting with automotive industry representatives including BMW, VW Group and Stellantis.

Individual reciprocal tariffs are paused by the US for 90 days. Base global tariffs of 10% are on, while Trump raises tariffs on Chinese imports to 145%.25% tariffs on steel and aluminium imports, and 25% tariffs on vehicle imports are upheld, as are the planned 25% tariffs on vehicle parts, due to be applied next month.