Trump's Tariff Tempest: Auto Industry Reels Amid New Import Duties

President Trump announced a 25% tariff on imported cars, sparking global trade concerns. The move aims to boost U.S. revenue and revive the industrial base. However, it faces international criticism and potential economic repercussions, especially for consumers and the U.S. auto industry.

In a bold move, U.S. President Donald Trump has declared a 25% tariff on imported cars and light trucks, intensifying a global trade war that he reignited upon reentering the White House. The decision, announced from the Oval Office, is expected to inflate prices and disrupt production.

While Trump justifies tariffs as a revenue-generating tool to balance tax cuts and rejuvenate the diminishing American industrial sector, international leaders express concern. European Commission President Ursula von der Leyen criticized the move as harmful to businesses and consumers, while Canadian Prime Minister Mark Carney described it as a direct assault on Canadian workers.

The potential economic fallout looms large, with industry experts predicting substantial price hikes and job losses in the automotive sector. As automaker shares dip and U.S. markets react, the broader implications for global trade relations remain uncertain.

(With inputs from agencies.)