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Trump Slaps 25% Tariffs on Imported Cars, Sparking Global Backlash
Trump imposes 25% tariffs on imported cars, sending shockwaves through global markets. Toyota, Honda, and GM stocks tumble as world leaders slam the move. Will this boost American jobs or ignite a global trade war?
ND
by News Desk
2025-03-27
Trump Slaps 25% Tariffs on Imported Cars, Sparking Global Backlash

Washington, D.C. – Former President Donald Trump has imposed a 25% tariff on all imported cars and light trucks, a decision that has rattled global markets and provoked sharp criticism from key U.S. trading partners. The new tariffs, which take effect on April 3 at 12:01 AM (09:01 AM PKT), also extend to crucial auto parts within the month.

The move is seen as part of Trump’s broader effort to revitalize U.S. manufacturing and reduce reliance on foreign-made vehicles. However, the policy has already drawn severe backlash, with Japan, Canada, Mexico, South Korea, and Germany among the most affected nations.

Global Leaders React

Japanese Prime Minister Shigeru Ishiba called the tariffs "extremely regrettable", while Canada’s Prime Minister Mark Carney labeled them a "direct attack" on Canadian workers. Brazilian President Luiz Inacio Lula da Silva signaled possible countermeasures, stating that his country “cannot stand still” in response.

Even Tesla CEO Elon Musk, a known Trump ally, voiced concern, saying the increased cost of auto parts due to tariffs would "not be trivial."

"To be clear, this will affect the price of parts in Tesla cars that come from other countries," Musk wrote on X (formerly Twitter).

Trump’s senior trade advisor, Peter Navarro, defended the move, accusing “foreign trade cheaters” of undermining U.S. industries by limiting the production of high-value parts to their own countries.

Stock Market in Turmoil

Ahead of Trump’s announcement, Wall Street slumped, with major automakers taking a hit:
General Motors – Down 3.2%
Stellantis – Down 3.1%
Toyota – Down 3.2%
Honda – Down 3.1%
Mazda & Subaru – Down around 6%
Hyundai – Down 2.7%

Market analysts fear that uncertainty surrounding Trump’s trade policies could trigger a downturn, with consumer confidence already on the decline.

Impact on the Auto Industry

The American Automotive Policy Council, representing Ford, General Motors, and Stellantis, responded cautiously, stating that while it hoped the tariffs would boost U.S. auto production, it was "critical to avoid raising prices for consumers."

According to the Center for Automotive Research, the tariffs could increase the price of new cars by thousands of dollars, potentially dampening demand and impacting jobs in the auto sector.

Trade War Escalation?

Trump has already imposed tariffs on Canada, Mexico, China, steel, and aluminum since starting his second term in January. His administration insists that the new duties will only apply to non-USMCA compliant vehicles and parts, meaning Canadian and Mexican manufacturers may receive exemptions.

However, trade experts warn that this aggressive tariff strategy could strain diplomatic relations and spark retaliatory measures from major economies.

"Imposing 25% tariffs on imported cars will have a devastating impact on many of our close trading partners," said Wendy Cutler, a former U.S. trade negotiator.

With Trump’s “Liberation Day” on April 2, where he plans to unveil a series of new economic policies, global markets remain on edge, bracing for further shifts in trade dynamics.
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