President Donald Trump announced on Wednesday he will impose new 25 percent tariffs on all imported cars not made in the U.S. beginning next week.

The tariffs only apply to finished vehicles, not auto parts, and will take effect on April 2, the same day that his long-awaited reciprocal tariffs are expected to start. The current U.S. tariff on foreign cars is 2.5 percent. White House Press Secretary Karoline Leavitt announced the auto tariffs were being signed later in the day.

The newly announced auto tariffs will likely harm car companies across the European Union, which is poised to launch countermeasures.

“This is the beginning of Liberation Day in America,” Trump declared during a press conference in the Oval Office. “We’re going to charge countries that are doing business in our country and taking our jobs, taking our wealth, taking a lot of things that they’ve been taking over the years and taking so much out of our country.”

Trump has repeatedly described April 2 as “Liberation Day,” marking the start of his sweeping reciprocal tariffs. Once enacted, the plan would match the tariff rates of foreign trading partners that have their own import duties on American goods.

The White House has hinted that the reciprocal tariffs may turn out softer than first intended. In an interview with Newsmax on Tuesday night, the president suggested the tariffs set to take effect next week would be more “lenient than reciprocal” because reciprocal tariffs “would be very tough for people.”

Tariffs are controversial because they could raise prices for American consumers and spark a potential trade war, which the Trump administration has downplayed.

Additionally, Trump emphasized that exemptions on next week’s reciprocal tariffs will be limited.

“I know there are some exceptions, and it’s an ongoing discussion, but not too many, not too many exceptions,” he said.

The U.S. trade measures currently in effect are 20 percent tariffs on China, 25 percent tariffs on aluminum and steel imports, and 25 percent tariffs on Canadian and Mexican goods that do not fall under the U.S.–Mexico–Canada Agreement. Canadian and Mexican products covered by the North American trade pact — including auto imports belonging to General Motors, Ford, and Stellantis — were given a one-month reprieve from the tariffs previously set to start in early March.