Overview

• President Donald Trump will implement a 25% tariff on all imported vehicles and auto parts starting April 3, aiming to boost U.S. manufacturing and reduce the trade deficit.
• The European Union and Canada are preparing retaliatory tariffs, escalating global trade tensions and raising the risk of a broader trade war.
• Economists project significant price hikes for U.S. car buyers, with new vehicle costs potentially increasing by $3,000 to $10,000 due to the tariffs.
• U.S. automakers and supply chains reliant on imported parts face disruption, with analysts warning of potential recessionary effects and prolonged market volatility.
• Texas and other states heavily involved in international trade are expected to be among the hardest hit, with job losses and economic strain anticipated.