US President Donald Trump has sparked a new wave of trade tensions by imposing steep tariffs on imported vehicles
and auto parts. The move, which takes effect on April 3, will see a 25% tariff slapped on all cars and light trucks not
made in the United States.
The decision has sent shockwaves through the global auto industry, with Asian markets already feeling the pinch. Shares in Japanese carmakers Toyota, Nissan, and Honda plummeted on Thursday, while South Korea’s Hyundai also took a hit.
The tariffs are the latest salvo in Trump’s trade war, which has already seen the US impose duties on imports from major trading partners Canada, Mexico, and China. The move has been justified by the White House as a way to protect American jobs and industries.
However, critics argue that the tariffs will have far-reaching consequences for the US economy, including higher prices for consumers and potential job losses. The Center for Automotive Research has estimated that the tariffs could increase the price of a car by thousands of dollars.
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The US auto industry is also bracing for impact, with the American Automotive Policy Council representing Detroit’s “Big Three” automakers – Ford, General Motors, and Stellantis – issuing a cautious statement on the tariffs.
While the council expressed hope that the policy would boost US auto production, it also stressed the need for tariffs to be implemented in a way that avoids raising prices for consumers.
The tariffs have also sparked a strong reaction from US trading partners, with Japan’s government describing the move as “extremely regrettable.” Canadian Prime Minister Mark Carney branded the tariffs a “direct attack” on his country’s workers.
