Thu, 27 Mar 2025

Thu, 27 Mar 2025 Trump announces 25% tariffs on car imports to US

The US President says the tariffs on cars will come into effect on 2 April and car parts a month later.

* US President Donald Trump has announced a 25% tariff on cars and car parts imported into the US, effective April 2.
* The tariffs will also apply to car parts imported from countries such as Japan, South Korea, Canada, and Germany.
* Mexico is the top foreign supplier of cars to the US, followed by South Korea, Japan, Canada, and Germany.
* The move is likely to lead to a temporary shutdown of significant car production in the US, increase prices, and strain relations with allies.
* The tariffs are expected to cost businesses thousands of dollars, with estimates suggesting that 25% tariffs on parts from Mexico and Canada alone could add $4,000-$10,000 to the price of a vehicle.
* Many countries, including the UK, Japan, and Canada, have expressed concerns about their exporters being hit by the new taxes.
* The US car industry has operations in Mexico and Canada under the terms of the free trade agreement between the three countries.
* Trump's latest move threatens to upend global car trade and supply chains, with shares in General Motors, Ford, and other companies sliding after the announcement.
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