The global auto industry faces a major setback as former U.S. President Donald Trump announces a new 25% tariff on imported vehicles. This policy is expected to disrupt international trade and heavily impact automakers relying on the U.S. market.
Companies from Japan, Germany, and South Korea—key exporters of vehicles to the U.S.—stand to suffer the most. Trump argues that the tariffs will protect American manufacturers and create jobs. However, critics warn of rising car prices for consumers and potential retaliation from affected countries.
Industry leaders have voiced strong opposition, fearing supply chain disruptions and declining sales. Both Japan and the European Union have hinted at countermeasures, which could escalate trade tensions.
The new tariffs could reshape global trade relations, straining economic ties between the U.S. and its allies. As legal challenges and diplomatic negotiations unfold, the long-term impact on the automotive industry remains uncertain.