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Trump's 25% Auto Tariffs Trigger Global Trade Tensions and Economic Fallout

The tariffs, set to take effect April 3, are expected to disrupt supply chains, raise U.S. car prices, and strain diplomatic ties with key allies like Canada and the EU.

  • President Donald Trump announced a 25% tariff on all imported vehicles and auto parts, effective April 3 for vehicles and May 3 for parts, aiming to boost U.S. manufacturing.
  • Analysts predict U.S. car prices could surge by $5,000 to $15,000, with used car prices also expected to climb due to increased demand.
  • Major automakers like General Motors and Ford have seen significant stock declines, while Tesla, with its U.S.-based production, remains less impacted.
  • Canada's Prime Minister Mark Carney declared the end of the 'old relationship' with the U.S., signaling a pivot in trade strategies and promising retaliatory measures.
  • The tariffs have sparked fears of a global trade war, with key trading partners, including the EU, Japan, and Canada, preparing countermeasures.
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