Trump's Tariff Turmoil: Global Automotive Shake-Up

U.S. President Donald Trump plans to impose up to 25% tariffs on automotive imports, aiming to boost U.S. industries while exacerbating the global trade war. The announcement has already impacted stock markets and raised fears of increased car prices and job losses due to reliance on imported parts.

U.S. President Donald Trump announced a significant tariff policy shift on Wednesday, proposing tariffs of up to 25% on automotive imports. This measure is part of a broader effort to invigorate the U.S. industrial sector and follows a series of tariff impositions that have escalated global trade tensions.

The President emphasized the tariffs as a financial strategy to support his tax reduction initiatives and reindustrialization objectives. The new duties will take effect on April 2, with reciprocal tariffs targeting major U.S. trade deficit countries to be unveiled on the same date. Trump suggested the implementation would be more lenient than anticipated.

The repercussions were felt in the stock market, with shares of automakers dipping on fears of cost increases and supply chain disruptions. Analysts predict that car prices could surge, affecting sales and employment, as the industry heavily depends on imported parts from key allies such as Mexico, Japan, and Germany.

(With inputs from agencies.)