Farmane-Ilahi

WASHINGTON (Web Desk) United States (US) President Donald Trump has announced a new 25 per cent tariff on imported cars and car parts, set to take effect on April 3, escalating the global trade war.

The move is aimed at boosting the domestic car industry and creating jobs, though analysts warn it could lead to higher car prices, production disruptions, and strain relations with key trading partners.

The tariffs will impact all foreign-made vehicles and parts, with temporary exemptions for parts from Mexico and Canada while a system for assessing duties is set up.

The US imports around $220 billion worth of vehicles annually, with major suppliers including Mexico, Japan, South Korea, Canada, and Germany.

Trump defended the 25 per cent tariff on imported cars, claiming it would boost the US car industry. However, critics argue it could raise costs and limit options for consumers.

Shares of US automakers like General Motors and Ford, along with Japanese manufacturers such as Toyota and Nissan, fell sharply.

Canadian Prime Minister Mark Carney called the tariffs a "direct attack" on Canadian workers, while European leaders warned of serious economic consequences for businesses and consumers on both sides of the Atlantic.

Despite concerns, Trump has remained firm in his stance, stating that the tariffs are part of his broader strategy to protect US manufacturing and reduce the trade deficit.