U.S. President Donald Trump has announced a 25% tariff on imported cars and light trucks, set to take effect on April 3. The White House claims this move will boost domestic manufacturing and raise $100 billion in annual revenue. However, economists warn that the tariffs could significantly increase vehicle prices, with estimates suggesting costs may rise by up to $12,500 per car.
The policy has sparked backlash from major U.S. trade partners, including Canada, the European Union, Japan, South Korea, and Germany. Leaders such as Canadian Prime Minister Mark Carney and European Commission President Ursula von der Leyen have condemned the move, calling it an economic attack that will harm workers and businesses on both sides of the Atlantic.
Markets have reacted negatively, with global auto stocks tumbling and major manufacturers warning of disruptions to supply chains. Critics argue that the tariffs could escalate into a broader trade war, leading to retaliatory measures that may slow global economic growth. Trump, however, has doubled down, threatening even harsher tariffs on nations that respond with countermeasures.
