Trump Unleashes 25% Tariff on Auto Imports: Economic Ripple Ahead

Trump announces a 25% tariff on auto imports to boost domestic manufacturing, potentially raising vehicle prices and impacting global supply chains. While intended to foster US factory growth, the move faces backlash from foreign leaders and raises concerns about global trade and consumer costs.

US President Donald Trump announced a 25% tariff on auto imports, claiming it would promote domestic manufacturing. The decision, however, risks financial strain on automakers dependent on global supply chains, raising concerns about vehicle prices.

The White House anticipates an annual revenue increase of USD 100 billion from the tariffs. Despite aiming for US factory growth, US and international automakers source parts globally, leading to potential higher costs. Economists warn of increased vehicle prices affecting middle-class consumers.

Foreign leaders criticized the tariffs, suggesting a potential trade war. Trump proposes a new tax incentive for US-made vehicles but faces criticism over international trade relations, and global economic stability is at stake as new tariffs roll out.

(With inputs from agencies.)