US Slaps 25% Tariff on Imported Cars, Industry Braces for Impact

In a major policy shift, President Donald Trump has announced a 25% tariff on all imported vehicles entering the United States. Calling the move "very exciting" for domestic manufacturing, Trump emphasized that the tariffs, set to take effect on April 2, are aimed at boosting local production and reducing reliance on foreign-made automobiles.

The tariffs will affect nearly half of all vehicles sold in the U.S., including those from American brands assembled overseas. The administration argues that this policy will encourage automakers to build more production facilities within U.S. borders, strengthening the domestic industry.

However, industry experts warn of serious economic consequences. Autos Drive America, a coalition representing international car manufacturers operating in the U.S., expressed deep concern over the move. "The tariffs will make car production more expensive, potentially leading to higher prices for consumers, reduced consumer choices, and job market disruptions," the group stated.

The announcement has heightened trade tensions with key automotive exporters, including European nations, Japan, and South Korea. These countries, which send large numbers of vehicles to the U.S., may view the measure as a direct challenge to their industries and could respond with retaliatory trade actions.

Economists predict that the tariffs will drive up vehicle prices by thousands of dollars, adding further pressure on American consumers already dealing with persistent inflation. The policy marks a significant intervention in the global automotive market, with the potential to reshape manufacturing strategies worldwide.

Trump remained confident about the measure, stating, "Anybody who has plants in the United States, it's going to be good for."

In addition to targeting global auto imports, Trump has also taken aim at India’s high tariffs on U.S. auto exports. In a speech to Congress, he criticized India’s auto import duties, which exceed 100%, and vowed to implement a reciprocal tax starting April 2. "The U.S. has been ripped off for decades by nearly every country on earth. We’re not going to let that happen any longer," he declared.

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