United Auto Workers (UAW) and some Democratic lawmakers are backing President Donald Trump’s plan to impose a 25% tariff on imported cars and light trucks.

On Wednesday, President Trump announced that the new tariff would take effect on April 2, 2025, with the US starting to collect the duties the next day. He believes the tariff could generate between $600 billion and $1 trillion in revenue over two years. White House officials estimated it could bring in around $100 billion.

“This will continue to spur growth like you haven’t seen before,” Trump said from the Oval Office.

Shawn Fain, the president of UAW, called the tariff a step toward ending what he described as the “free trade disaster.” He believes the policy will encourage automakers, including the Big Three and Volkswagen, to bring back union jobs to the US.

UAW has often criticized automakers for shifting production outside the country. In a statement, the union said the tariff could help create thousands of jobs in the American auto industry. However, UAW also emphasized that broader changes in trade policies are needed to fully protect US workers.

Some Democratic lawmakers also welcomed the tariff. Congresswoman Debbie Dingell said the move could help bring manufacturing back to the US.

Similarly, Congresswoman Haley Stevens said the US needs smart trade policies that support American jobs. She pointed out that tariffs help the US compete with countries like China, which don’t always follow fair trade rules.

With strong support from workers and politicians, this tariff could reshape the US auto industry. If automakers respond by shifting production back to the US, it could lead to more jobs and economic growth. However, the long-term effects remain to be seen.