Trump announces 25% tariff on car imports including on Canada, raising trade war concerns

Washington: US President Donald Trump has announced a 25% tariff on cars and car parts imported into the country, a move expected to escalate global trade tensions. The tariff on vehicles will take effect from April 2, while charges on car parts will be implemented from May or later.

Trump claimed the measure would bring “tremendous growth” to the US car industry, boosting jobs and investment. However, analysts warn it could disrupt car production, increase prices, and strain relations with key trade partners.

The US imported nearly 8 million cars last year, amounting to $240 billion in trade. Mexico is the largest supplier of vehicles to the US, followed by South Korea, Japan, Canada, and Germany. The new tariffs threaten to disrupt the global car trade and supply chains, particularly as many US car manufacturers have operations in Mexico and Canada under long-standing free trade agreements.

The White House confirmed that the order applies to both fully assembled vehicles and car parts, which are often imported and then assembled in the US.