Trump Imposes 25% Tariffs on Car Imports, Sparking Industry and Trade Concerns
President Donald Trump has announced new 25% tariffs on imported cars and auto parts, set to take effect in phases starting 2 April. Vehicle tariffs will apply immediately, while parts tariffs—excluding those from Canada and Mexico for now—will begin in May or later. Trump framed the move as a boon for American manufacturing, claiming it would drive "tremendous growth," jobs, and investment. However, analysts warn of potential short-term factory shutdowns, higher consumer prices, and strained trade relations. The policy could disrupt global supply chains, particularly for the $240bn annual US car import market, which accounts for half of domestic sales. Mexico, South Korea, Japan, Canada, and Germany—the top suppliers—face direct impacts. US automakers with cross-border operations, like GM and Stellantis (owner of Jeep and Chrysler), saw shares drop 3-3.6% ahead of the announcement. Tesla CEO Elon Musk acknowledged the tariffs […]