United States President Donald Trump has announced a 25 percent tariff on all foreign-made cars and light trucks, a decision that has led to strong reactions from global leaders and businesses.
Speaking at the White House on Wednesday, Trump signed the order, stating that the new tariffs will take effect from April 3 at 12:01 am (0401 GMT).
“What we’re going to be doing is a 25 percent tariff on all cars that are not made in the United States,” Trump said.
The tariffs will also apply to key automobile parts, which will be affected later in the month.
Japan has criticized the decision, calling it “extremely regrettable”. Prime Minister Shigeru Ishiba said Tokyo is “considering all kinds of countermeasures” to protect its economy.
Canada has also condemned the tariffs. Prime Minister Mark Carney described them as a “direct attack” on Canadian workers and said his government would meet to discuss possible responses.
Brazil’s President Luiz Inacio Lula da Silva also reacted, saying his country “cannot stand still” in response to the levies.
Even Tesla CEO Elon Musk, who is usually supportive of Trump, expressed concern about the impact of the tariffs on the cost of his company’s cars.
“To be clear, this will affect the price of parts in Tesla cars that come from other countries. The cost impact is not trivial,” Musk posted on X.
The announcement has already affected global markets. Wall Street stocks fell, with major US automakers General Motors and Stellantis losing more than three percent in share value.
In Japan, Toyota shares dropped by more than three percent, while Nissan, Honda, Mitsubishi, Mazda, and Subaru also recorded losses. South Korea’s Hyundai saw its stock fall by 2.7 percent.
Analysts warn that the tariffs could raise the price of cars in the US, putting pressure on American consumers.
Wendy Cutler, vice president of the Asia Society Policy Institute, said the tariffs “will have a devastating impact on many of our close trading partners” and could damage existing trade agreements.
About half of the cars sold in the US are manufactured within the country, but many are assembled using imported parts.
The American Automotive Policy Council, which represents Ford, General Motors, and Stellantis, said it supports efforts to boost US auto production but warned that “tariffs must be implemented in a way that avoids raising prices for consumers.”
The tariffs are part of Trump’s larger trade policy, which has already imposed duties on Canada, Mexico, and China, as well as a 25 percent tariff on steel and aluminum.
He has also promised more tariffs on other industries, including pharmaceuticals, semiconductors, and lumber.
The move comes just before what Trump calls “Liberation Day” on April 2, when he plans to introduce more trade restrictions aimed at protecting the US economy.
According to a White House official, the tariffs are based on a government investigation from 2019, which found that excessive imports were weakening the US economy and could harm national security.
Despite the criticism, Trump insists that his trade policies will bring back jobs and strengthen American manufacturing.
