Trump's 25% Auto Tariff Escalates Trade Tensions with Allies

The tariffs, set to take effect April 3, face global backlash, with Canada and the EU preparing retaliatory measures as automakers and consumers brace for economic fallout.

President Trump announced a 25% tariff on foreign-made cars and parts, aimed at boosting U.S. manufacturing and reshoring production.
Canada and the European Union have signaled potential retaliatory actions, escalating trade tensions with key U.S. allies.
Experts predict car prices in the U.S. could rise by $5,000 to $15,000, while automakers face supply chain disruptions and increased costs.
Stock prices for major automakers, including Ford, GM, and Stellantis, have dropped significantly following the tariff announcement.
Tesla, with its U.S.-based production, is expected to be less affected, though it still relies on some foreign-sourced components.