US Imposes 25% Tariff on Imported Cars, Sparking Global Trade Concerns

The United States has imposed a 25% tariff on imported automobiles, a move expected to significantly impact global trade. Announced by the US administration, the tariff aims to boost domestic jobs and tax revenues. However, the decision has drawn criticism and sparked concerns among major automakers in Japan, South Korea, and Europe, who fear economic challenges due to their reliance on the US market. The tariffs extend to auto parts, affecting a USD 197 billion industry. Critics warn of increased prices for American consumers and potential retaliatory measures from other countries, possibly leading to trade wars. While the US administration anticipates the tariffs will encourage domestic manufacturing, experts predict that costs will be passed on to consumers, potentially increasing the average price of an imported vehicle by $12,500. Canadian Prime Minister Mark Carney has voiced strong opposition, stating that Canada will "fight" the tariffs with retaliatory measures designed to have maximum impact on the US. He also mentioned a call with the US President, emphasizing the need for cooperation and mutual respect. The EU has also expressed concern, with European Commission President Ursula von der Leyen stating that the EU will assess the impact and protect its businesses and consumers.