Ripple Effects: Trump's Auto Tariffs Stir Global Economic Concerns

US President Donald Trump's 25% tariff on imported cars is generating global concern. Major automakers in Japan, South Korea, and Europe face possible economic challenges, while the tariffs aim to boost US jobs and tax revenues. Critics fear potential retaliatory measures, escalating trade wars, and increased prices for consumers.

US President Donald Trump has introduced a 25% tariff on imported cars, aiming to boost domestic jobs and tax revenues. This move has sparked global concern among automakers across Japan, South Korea, and Europe, who face significant economic challenges due to their reliance on US car buyers.

The tariffs also extend to auto parts, impacting a USD 197 billion industry. Critics warn of increased prices for American shoppers and potential retaliatory measures that could trigger trade wars. While Trump claims the tariffs will increase manufacturing jobs, experts predict a rise in costs passed on to consumers.

Countries worldwide are considering their response strategies, and the EU has hinted at possible re-imposing tariffs on US goods. Despite the economic uncertainty, the tariffs have been presented as 'permanent' by the US administration, casting doubts on the longevity of this trade policy.

(With inputs from agencies.)