Trump Presses Ahead with 25% Tariff on Imported Cars, Ratcheting up Trade War

Washington: US President Donald Trump has imposed a 25 per cent tariff on all vehicles that are not made in United States. All imported vehicles, including those assembled overseas by American manufacturers will now have to face hefty tariffs. The move, aimed at boosting domestic car production, is expected to significantly increase car prices in the United States. Trump called the decision "very exciting" for the country's manufacturing sector.  

Industry experts, however, warn of major repercussions. Jennifer Safavian, President and CEO of Autos Drive America, criticized the tariffs, saying they would make cars more expensive, reduce consumer options, and impact US manufacturing jobs.  

“At a time when cost is the number one concern for American car buyers, U.S. automakers are working to provide a range of affordable vehicles for consumers. The tariffs imposed today will make it more expensive to produce and sell cars in the United States, ultimately leading to higher prices, fewer options for consumers, and fewer manufacturing jobs in the US, said Jennifer Safavian.

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The announcement is likely to heighten trade tensions with key automotive-exporting nations such as Japan, South Korea, and European countries. Economists predict car prices could rise by thousands of dollars, further straining consumers already dealing with inflation.  

Trump, defending his stance, said the policy would benefit companies manufacturing within the US. The move follows his previous criticism of India’s high auto tariffs, with a reciprocal tax set to take effect on April 2.