Trump’s 25% Tariff Bomb on Imported Cars Sparks Global Trade Unrest

On Wednesday, March 26, U.S. President Donald Trump announced the imposition of a 25% tariff on imported cars, escalating the trade war he initiated upon returning to the White House. This decision has sent ripples through international markets, with Europe, Canada, and Brazil labeling it as an ‘attack.’ Japan has warned it will retaliate with ‘appropriate’ measures. Automakers like Toyota, Nissan, Honda, and Hyundai saw their shares plummet. The Republican president views tariffs as a tool to boost revenues, offsetting tax cuts while revitalizing America’s declining industrial base. In 2024, the U.S. imported passenger cars worth $220 billion and automotive goods valued at $47.4 billion, primarily from Mexico, Japan, South Korea, Canada, and Germany. The EU expressed deep regret over the tariffs, with Ursula von der Leyen stating they would seek solutions through negotiations. Japan foresees significant global economic impact, while Canada sees this as a direct attack on its workers. Brazil also vows action against what it perceives as unjust trade practices. Stock prices of major automakers dropped sharply following the announcement.