After Trump imposes a 25% tariff on imported cars, allies threaten retaliation.

• Trump’s decision to impose a 25% tariff on imported vehicles has sparked global trade war.
• The levies will take effect on April 3, following Trump’s plans to impose reciprocal tariffs on countries contributing to the US trade deficit.
• The tariffs are in addition to duties on steel, aluminium, and goods from Mexico, Canada, and China.
• The US imported $474 billion worth of automotive products in 2024, with Mexico, Japan, South Korea, Canada, and Germany being the biggest suppliers.
• European Commission President Ursula von der Leyen criticized the move as “bad for businesses, worse for consumers.”
• Canadian Prime Minister Mark Carney labelled the tariffs a “direct attack” on Canadian workers.