Trump's Tariff Tactics: A New Trade War Wave

U.S. President Donald Trump plans to announce tariffs on automotive imports, potentially up to 25%, potentially escalating the global trade war. This announcement impacts the U.S.-Canada-Mexico Agreement and global automakers. Tariffs may increase vehicle costs, affect jobs, and hit sales as U.S. reliance on imports grows.

U.S. President Donald Trump is set to unveil new tariffs on automotive imports at a Wednesday press conference, further fueling the global trade war initiated this year. While details on these tariffs, especially regarding the U.S.-Canada-Mexico Agreement, remain undefined, Trump's administration maintains a hardline stance.

The President has hinted at imposing tariffs as steep as 25% on foreign cars. This move aligns with planned reciprocal tariffs targeting countries contributing most to the U.S. trade deficit. Industry experts warn of significant sectoral impacts and rapid announcements set for April 2.

Automakers fear increased vehicle costs, reduced sales, and potential job losses due to the heavy reliance on imported parts. With the U.S. importing $474 billion in auto products in 2024, including major imports from allies like Mexico and Canada, the industry braces for dramatic changes.

(With inputs from agencies.)