Trade Tensions Rev Up as Trump Targets Auto Imports with New Tariffs

U.S. President Donald Trump is set to announce new tariffs on automotive imports, escalating the global trade tensions. The automotive industry anticipates a 25% tariff, which could increase vehicle costs and disrupt production. Stocks have reacted negatively amid fears of widespread economic impact.

In a move set to escalate global trade tensions, U.S. President Donald Trump will unveil plans for long-awaited tariffs on automotive imports. Industry experts warn this could spike vehicle prices and hinder production, with the announcement expected at a Wednesday press conference.

No specifics have been provided by the White House, particularly regarding potential exemptions for vehicles or parts under the U.S.-Mexico-Canada Agreement. Auto industry sources brace for a 25% tariff on finished vehicles, likely starting April 2, coinciding with Trump's planned reciprocal tariffs targeting the U.S. trade deficit.

If implemented, the measures could add thousands to vehicle prices, affecting sales and jobs. Analysts remain concerned as stocks slide, with the S&P 500 Index declining more than 1% just ahead of the news.

(With inputs from agencies.)