Trump Announces Steep Tariffs on Auto Imports, Sparking Retaliation Threats

US President Donald Trump has announced significant tariffs on imported automobiles and auto parts, a move that is expected to intensify trade tensions with key global partners. The tariffs, set to take effect on April 3, are a part of Trump’s ongoing efforts to reduce the US trade deficit and strengthen the domestic manufacturing sector. However, the announcement has already sparked retaliation threats from several trading partners.

Trump revealed that a 25 percent tariff will be imposed on all cars and light trucks not manufactured in the United States. Key auto parts will also be affected by the new duties within the next month. “What we’re going to be doing is a 25 percent tariff on all cars that are not made in the United States,” Trump said as he signed the executive order in the Oval Office on Thursday.

The announcement immediately impacted global markets, with shares in carmakers plummeting as Asian markets opened. Japan, one of the largest exporters of vehicles to the US, expressed strong disapproval of the decision. The Japanese government labeled the tariffs as “extremely regrettable,” and Prime Minister Shigeru Ishiba said that Tokyo was “considering all kinds of countermeasures” in response.

Canada, another major player in the US automotive industry, also condemned the tariffs. Canadian Prime Minister Mark Carney called the new levies a “direct attack” on Canadian workers, and his government is set to meet later this week to discuss possible retaliatory measures.

Peter Navarro, Trump’s senior advisor for trade and manufacturing, defended the tariffs, claiming they were necessary to protect American workers from what he called “foreign trade cheaters.” He criticized countries like Germany and Japan for keeping the production of higher-value parts within their borders while sending lower-value components to the US for assembly.

Since returning to office in January, Trump has imposed several rounds of tariffs on imports from major trading partners, including Canada, Mexico, and China. In addition to the new auto tariffs, the US has already implemented a 25 percent duty on steel and aluminum imports.

The White House clarified that vehicles and auto parts entering the US under the US-Mexico-Canada Agreement (USMCA) could qualify for a lower tariff rate if they meet certain content requirements. Auto parts that comply with the USMCA will remain tariff-free as the administration establishes a process to target non-US content.

As the tariffs prepare to take effect next week, the global automotive industry and US trading partners are bracing for a potential escalation in trade disputes.