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Trump imposes 25% tariffs on imported vehicles

Profile Picture by BishopNuel at 05:19 pm on March 27, 2025
US President Donald Trump has announced steep tariffs on auto imports and parts, provoking threats of retaliation from trading partners ahead of further promised trade levies next week.

As Asian markets opened Thursday, shares in carmakers were down sharply. Japan’s government described the Washington move as “extremely regrettable,” while Prime Minister Shigeru Ishiba said Tokyo was “considering all kinds of countermeasures.”

“What we’re going to be doing is a 25 percent tariff on all cars that are not made in the United States,” Trump said, as he signed the order in the Oval Office.

The duties take effect at 12:01 am (0401 GMT) on April 3 and impact foreign-made cars and light trucks. Key automobile parts will also be hit within the month.

Canadian Prime Minister Mark Carney branded Trump’s tariffs a “direct attack” on his country’s workers. He said that the cabinet would meet on Thursday to discuss retaliation.

Peter Navarro, Trump’s senior counselor for trade and manufacturing, in a briefing after Trump’s announcement, blasted “foreign trade cheaters” who, he said, turned America’s manufacturing sector into a “lower wage assembly operation for foreign parts.”

He took aim at Germany and Japan for reserving the construction of higher-value parts to their countries.

Since returning to the presidency in January, Trump has imposed fresh tariffs on imports from major US trading partners Canada, Mexico and China — alongside a 25 percent duty on steel and aluminum.

The latest levies will be in addition to those already in place for products.

But the White House added that vehicles entering under the US- Mexico- Canada Agreement can qualify for a lower rate depending on their American content.

Similarly, USMCA-compliant auto parts will remain tariff-free as officials establish a process to target their non-US content.

– ‘Devastating impact’ –

Uncertainty over Trump’s trade plans and worries that they could trigger a downturn have roiled financial markets, with consumer confidence also falling in recent months amid fears of the tariffs’ effects.

Wall Street slumped ahead of Trump’s Wednesday afternoon announcement, with shares in General Motors down 3.1 percent, although Ford eked out a 0.1 percent gain.

On Thursday in Japan, the world’s top-selling automaker Toyota was down almost 3.5 percent, while Nissan shed 2.5 percent, and Honda fell as much as 3.1 percent. Mitsubishi Motors decreased 4.5 percent, while Mazda dropped 5.9 percent, and Subaru tumbled 6.1 percent.

In South Korea, Hyundai shares dipped 2.7 percent.



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