Former U.S. President Donald Trump has announced plans to impose a 25% tariff on all cars imported into the United States.
Speaking from the Oval Office, Trump said the new tariff would replace the existing 2.5% rate, increasing it to 25% starting from April 2, a date he referred to as “Liberation Day.”
The president claimed the move would boost U.S. economic growth and protect American jobs, though economists and industry leaders have raised serious concerns.
Trump argued that the U.S. has been treated unfairly by its trading partners and insisted that tariffs are the best way to address this imbalance.
However, many economists warned that the new tariffs could lead to higher car prices, with some estimates suggesting an increase of up to $12,000 per vehicle in the U.S. market.
The announcement triggered an immediate backlash from key trading partners including Canada, Mexico, Japan, South Korea, and Germany, who are among the largest exporters of vehicles to the U.S.
Canadian Prime Minister Mark Carney condemned the move, calling it a “direct attack” on Canadian workers and vowing to defend their interests.
The tariffs also caused a negative reaction in financial markets, with automaker stocks and U.S. equity futures dropping sharply after the announcement.
Industry groups and economists warned that the tariffs could threaten thousands of jobs across North America and harm long-term economic stability.
Despite growing criticism, Trump defended the policy on Truth Social, claiming tariffs were already bringing money into the U.S. and promising victory in future trade battles.
