Global Trade Tensions Escalate as U.S. Imposes Vehicle Tariffs

U.S. President Donald Trump announced a 25% tariff on imported vehicles, intensifying global trade disputes. The tariffs, effective April 3, have strained U.S. ties with key allies and are expected to increase vehicle costs. Major car-exporting nations, including Canada and Germany, have vowed retaliatory measures, threatening further economic consequences.

The global trade tension intensified as President Donald Trump imposed a 25% tariff on imported vehicles, setting the stage for a broader economic conflict with key trading partners from Ottawa to Paris. This move contradicts Trump's campaign to reduce consumer prices and leaves consumers facing possible hikes in vehicle costs.

Canada, Japan, Germany, and other major auto exporters are preparing retaliatory measures in response to the U.S tariff, further straining diplomatic and economic relations. Canadian Prime Minister Mark Carney has called a cabinet meeting, while European officials consider increasing their own tariffs, labeling the move detrimental to both business and consumer interests.

Global automotive stocks have slipped, with German auto shares particularly hit hard. Meanwhile, Tesla, along with other U.S.-based EV makers, rose slightly on the news. As political tensions mount, industry experts warn of potential job losses, higher prices, and an uncertain future for the global auto industry.

(With inputs from agencies.)