President Donald Trump’s new 25% tariffs on all cars shipped to the United States “is a step in the right direction” for auto workers, said Shawn Fain, president of the United Auto Workers.

The move by Trump 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. Fain 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,” said Fain, whose union supported Vice President Kamala Harris in the 2024 presidential election.

Fain credited the Trump administration “for stepping up to end the free-trade disaster that has devastated working-class communities for decades.”

White House Press Secretary Karoline Leavitt said Thursday that the president’s new tariffs “are a big deal for auto workers in the industry.”

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

Auto Drives America, a trade association that represents Volkswagen, said in a statement that tariffs will increase production costs for cars in the U.S.

“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 statement said.

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