Trump's directive to levy 25% tariffs on foreign cars ignites outrage
On March 26, US President Donald Trump issued an executive order that establishes a 25 percent tariff on all imported cars and specific auto parts, set to take effect on April 2. The White House estimates that this action could generate more than $100 billion in annual revenue. However, it may significantly disrupt the global automotive supply chain and is encountering fierce resistance from traditional US allies such as Canada and the European Union, potentially leading to a new wave of trade conflicts.
TroibNews 
On March 26, US President Donald Trump signed an executive order that imposes a 25 percent tariff on all imported cars and specific auto parts, set to take effect on April 2.
According to Trump, this measure is anticipated to generate more than $100 billion in additional revenue annually. However, it has caused significant disruptions in the global automotive supply chain and has faced strong backlash from traditional allies such as Canada and the European Union, raising the possibility of renewed international trade disputes.
Canadian Prime Minister Mark Carney remarked that the tariff would "deal a heavy blow to Canada." Ontario Premier Doug Ford indicated that Canada might respond with retaliatory actions to ensure an equivalent level of "pain" for the US.
European Commission President Ursula von der Leyen expressed deep regret over Trump's decision, stating, "Tariffs are taxes – bad for businesses, worse for consumers equally in the US and the European Union." She noted that the EU would evaluate this move, along with other prospective measures from the US, in the coming days and would continue to pursue negotiated solutions while protecting its economic interests.
Brazilian President Luiz Inacio Lula da Silva, addressing the US tariffs during his visit to Japan, mentioned that he is contemplating both a challenge in the WTO and possible retaliatory tariffs against the US, though he did not provide specific details. He also expressed skepticism about the advantages of tariffs, highlighting that they could lead to inflation and negatively impact the US economy, and voiced concerns about the rising tide of protectionism in the global market.
In the United States, the United Auto Workers Union has endorsed the policy, arguing that it will help safeguard American jobs. Conversely, Autos Drive America, representing international automakers, cautioned that the tariff would exacerbate already inflated car prices, making them even less affordable.
Jonathan Smoke, Chief Economist at Cox Automotive, warned that the tariff policy could significantly disrupt North American auto production, potentially resulting in supply shortages, increased prices, and a further weakening of the economy.
Overall, Trump's tariff initiative has sparked widespread attention and controversy, with the repercussions for the US economy and the global automotive industry yet to unfold.
Emily Johnson contributed to this article for TROIB News
According to Trump, this measure is anticipated to generate more than $100 billion in additional revenue annually. However, it has caused significant disruptions in the global automotive supply chain and has faced strong backlash from traditional allies such as Canada and the European Union, raising the possibility of renewed international trade disputes.
Canadian Prime Minister Mark Carney remarked that the tariff would "deal a heavy blow to Canada." Ontario Premier Doug Ford indicated that Canada might respond with retaliatory actions to ensure an equivalent level of "pain" for the US.
European Commission President Ursula von der Leyen expressed deep regret over Trump's decision, stating, "Tariffs are taxes – bad for businesses, worse for consumers equally in the US and the European Union." She noted that the EU would evaluate this move, along with other prospective measures from the US, in the coming days and would continue to pursue negotiated solutions while protecting its economic interests.
Brazilian President Luiz Inacio Lula da Silva, addressing the US tariffs during his visit to Japan, mentioned that he is contemplating both a challenge in the WTO and possible retaliatory tariffs against the US, though he did not provide specific details. He also expressed skepticism about the advantages of tariffs, highlighting that they could lead to inflation and negatively impact the US economy, and voiced concerns about the rising tide of protectionism in the global market.
In the United States, the United Auto Workers Union has endorsed the policy, arguing that it will help safeguard American jobs. Conversely, Autos Drive America, representing international automakers, cautioned that the tariff would exacerbate already inflated car prices, making them even less affordable.
Jonathan Smoke, Chief Economist at Cox Automotive, warned that the tariff policy could significantly disrupt North American auto production, potentially resulting in supply shortages, increased prices, and a further weakening of the economy.
Overall, Trump's tariff initiative has sparked widespread attention and controversy, with the repercussions for the US economy and the global automotive industry yet to unfold.
Emily Johnson contributed to this article for TROIB News
Find more stories on Business, Economy and Finance in TROIB business
