Global Trade Tensions Surge as U.S. Imposes 25% Auto Tariffs

The U.S., under President Trump, announced a 25% tariff on imported vehicles, sparking global trade tensions and impacting auto stocks, particularly in Asia. Affected U.S. allies, including Canada and the EU, threatened retaliation. The move risks higher consumer prices and job losses in the interconnected automotive industry.

Asian auto stocks took a hit on Thursday following President Trump's decision to impose a 25% tariff on imported vehicles. This move is expected to exacerbate the ongoing global trade war, drawing criticism and threats of retaliation from U.S. allies worldwide.

In 2024, the U.S. imported $474 billion worth of automotive products, with major suppliers including Mexico, Japan, South Korea, Canada, and Germany. European Commission President Von der Leyen condemned the tariffs as detrimental to businesses and consumers, while Canada's Prime Minister Mark Carney promised countermeasures.

The tariffs are projected to elevate U.S. car prices and lead to job losses, as the domestic auto industry heavily depends on imported components. Trade experts anticipate initial price hikes, worsening the existing strain on the global auto sector caused by Trump's unpredictable tariff declarations.

(With inputs from agencies.)