Trump Announces 25% Tariff on Imported Cars, Effective April 2

The policy aims to boost domestic production but faces global criticism and warnings of retaliatory measures.

Donald Trump confirmed a 25% tariff on all imported cars not manufactured in the U.S., raising the total tax to 27.5%, effective April 2, 2025.
The tariffs are intended to reduce trade deficits and encourage companies to relocate production to the United States.
Key trade partners, including Canada, Japan, and the EU, have criticized the move, with some nations signaling potential retaliatory actions.
The automotive industry, including U.S. manufacturers like Tesla, is bracing for higher costs and supply chain disruptions due to reliance on imported parts.
Experts warn the tariffs could increase car prices for U.S. consumers and lead to reduced vehicle sales, with broader economic implications globally.