Trump's Tariff Announcement Sparks Economic Concerns

President Trump announced a permanent 25% tariff on cars not made in the U.S., impacting global trade and causing stock fluctuations. Experts express concern over potential economic disruptions, exemptions for U.S. automakers, and the broader implications for global trade relationships.

President Donald Trump declared on Wednesday that the U.S. will implement a 25% tariff on all imported cars, asserting that the measure will be permanent. The directive immediately impacted car manufacturers' stocks, with General Motors and Ford experiencing a decline and Tesla experiencing volatility.

Economic experts, including Chuck Carlson from Horizon Investment Services, are skeptical about the tariff's long-term viability, suggesting potential exemptions for U.S. automakers due to supply chain considerations. However, the tariff indicates a significant shift in global trade policy under Trump's administration.

According to Prashant Newnaha of TD Securities, the tariffs add to existing ones on materials like steel and aluminum, complicating economic growth projections. Financial analyst Kyle Rodda notes that these tariffs suggest an enduring reshaping of global trade norms beyond the upcoming reciprocal tariff announcements.

(With inputs from agencies.)